Defendant Name: KBR, Inc.

Defendant Type: Public Company
SIC Code: 1629
CUSIP: 48242W10

Initial Case Details

Legal Case Name In the Matter of KBR, Inc.
First Document Date 02-Jul-2018
Initial Filing Format Administrative Action
File Number 3-18569
Allegation Type Issuer Reporting and Disclosure
AAER 3946

Violations Alleged

Exchange Act
• Rule 12b-20
• Sec 13(a)
• Rule 13a-1
• Rule 13a-11
• Rule 13a-13
• Sec 13(b)(2)(A)
• Sec 13(b)(2)(B)
Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)
Other
• The books and records, internal accounting controls, and reporting provisions of the Exchange Act

Resolutions

First Resolution Date 02-Jul-2018
Headline Total Penalty and Disgorgement $2,500,000

Related Documents:

33-10516 02-Jul-2018 Administrative Proceeding
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order
On July 2, 2018, the SEC issued an order against KBR, Inc., stating: "KBR is a global engineering, construction, and services company based in Houston, Texas. On May 30, 2014, KBR filed a Form 10-K/A that: (a) restated and amended earnings in its consolidated financial statements for the fiscal year ended December, 31, 2013, and its unaudited consolidated financial statements for the third quarter of 2013; (b) reduced its disclosed backlog as of the fiscal year ended December 31, 2013; and (c) identified a material weakness in its internal control over financial reporting."
2018-127 02-Jul-2018 Press Release--Administrative Proceeding
SEC Charges KBR for Inflating Key Performance Metric and Accounting Controls Deficiencies
On July 2, 2018, the SEC issued a press release regarding SEC charges against KBR Inc., stating: "The Securities and Exchange Commission today charged global engineering and construction company KBR Inc. with inflating a key, non-financial statement performance metric known as work in backlog. KBR agreed to pay a $2.5 million penalty to settle the SEC's charges." Furthermore, "The SEC's order also found that KBR had deficient internal accounting controls and failed to make accurate and reliable estimates of the costs to complete seven Canadian contracts, which led the company to overstate net income."