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SEC steps up enforcement actions against CPAs for cooking books

Publisher: MarketWatch
Author: Francine McKenna

The Securities and Exchange Commission fined Bankrate Inc. $15 million to settle charges that their CPAs engaged in accounting fraud to ensure that its financial results met analyst expectations, Reuters reported on Tuesday.

The company’s former Chief Financial Officer Edward DiMaria and former director of accounting Matthew Gamsey, were also sued. The litigation continues against DiMaria and Gamsey. Former vice president of finance Hyunjin Lerner settled for $180,045 settlement for his role in the scheme. The SEC accused the company and the finance officials of scheming to boost revenue and understate expenses to meet analyst targets for adjusted earnings before interest, taxes, depreciation and amortization for the second quarter of 2012.

That wasn’t the only accounting-related SEC enforcement action announced Tuesday.

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