Seven former executives of Symbol Technologies have been indicted by federal authorities for accounting fraud.
Symbol, based in Holtsville, Long Island, N.Y., makes ruggedized handheld computers and bar code scanners. The company’s products are widely used in trucking applications. Symbol frequently partners with other technology providers like Aether Systems, Qualcomm and UPS Logistics to deliver freight-handling systems.
According to the New York Times, the indictments arose from a “wide-ranging deception (that) ran from 1999 to 2002, inflated Symbol's reported revenues by more than $200 million, and involved nearly its entire former management team, including the chief executive, chief financial officer and senior vice presidents for operations, sales and finance.”
The 87-page indictment charges the former executives with accounting schemes they gave names that included channel stuffing, candy deals, tango sheets and cookie jar reserves.
Irregularities were reported anonymously to the Securities and Exchange Commission in 2001. The accused executives had all been replaced by August 2002. Since then, according to prosecutors, the company’s cooperation was “full and complete,” even to the point of waiving attorney client privilege.
A press release on the Symbol web site Friday said that as result of its cooperation and an agreement with the SEC to pay restitution to some stock holders, no criminal complaint will be filed against the company.
“With an improving balance sheet and new products gaining traction in the marketplace, we are extremely enthusiastic about the future of the Company and believe Symbol is strongly positioned to lead in the new age of enterprise mobility,” said William Nuti, Symbol president and CEO.
Symbol, based in Holtsville, Long Island, N.Y., makes ruggedized handheld computers and bar code scanners. The company’s products are widely used in trucking applications. Symbol frequently partners with other technology providers like Aether Systems, Qualcomm and UPS Logistics to deliver freight-handling systems.
According to the New York Times, the indictments arose from a “wide-ranging deception (that) ran from 1999 to 2002, inflated Symbol's reported revenues by more than $200 million, and involved nearly its entire former management team, including the chief executive, chief financial officer and senior vice presidents for operations, sales and finance.”
The 87-page indictment charges the former executives with accounting schemes they gave names that included channel stuffing, candy deals, tango sheets and cookie jar reserves.
Irregularities were reported anonymously to the Securities and Exchange Commission in 2001. The accused executives had all been replaced by August 2002. Since then, according to prosecutors, the company’s cooperation was “full and complete,” even to the point of waiving attorney client privilege.
A press release on the Symbol web site Friday said that as result of its cooperation and an agreement with the SEC to pay restitution to some stock holders, no criminal complaint will be filed against the company.
“With an improving balance sheet and new products gaining traction in the marketplace, we are extremely enthusiastic about the future of the Company and believe Symbol is strongly positioned to lead in the new age of enterprise mobility,” said William Nuti, Symbol president and CEO.
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