Defendant Name:
Ingram Micro Inc.
Defendant Type:
Public Company
SIC Code:
5045
CUSIP:
45715310
Document Reference:
34-59903
Document Details
Legal Case Name
In the Matter of Ingram Micro Inc.
Document Name
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order
Document Date
12-May-2009
Document Format
Administrative Proceeding
AAER
2968
Allegation Type
Issuer Reporting and Disclosure
Document Summary
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."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Monetary Penalties:
Disgorgement
Individual:
$15,000,000.00
Shared:
