On May 12, 2009, the SEC instituted settled cease-and-desist proceedings against Ingram Micro Inc. stating: "These proceedings arise out of the business dealings between Ingram Micro and McAfee, Inc., formerly known as Network Associates, Inc. (referred to herein as “McAfee”) during the period from the second quarter of 1998 through the third quarter of 2000 when McAfee was engaged in a massive financial fraud. During that period, McAfee overstated its revenues and earnings by stuffing its distribution channel at Ingram Micro with levels of inventory far in excess of any reasonable expectation of sales to end users while misreporting its revenues from these sales to their distributors. For its part, Ingram Micro, McAfee’s largest customer and greatest single source of revenue, engaged in a variety of highly irregular transactions with McAfee, many of them lacking in economic substance, which enabled McAfee to continue overselling its products to Ingram Micro. In the course of its business dealings with McAfee, Ingram Micro failed to keep accurate books and records and failed to devise and maintain an adequate system of internal controls."