Defendant Name:
Symmetry Medical, Inc.
Defendant Type:
Public Company
Document Reference:
2012-21
Document Details
Legal Case Name
In the Matter of Symmetry Medical Inc. and Fred L. Hite
Document Name
SEC Charges Former Executives and Accountants With Fraud at British Subsidiary of Medical Devices Company; SEC Obtains Settlements With CEO and CFO to Clawback Bonuses Under Sarbanes-Oxley Section 304
Document Date
30-Jan-2012
Document Format
Administrative Proceeding
Allegation Type
Issuer Reporting and Disclosure
Document Summary
On January 30, 2012, the SEC announced that it charged four former senior executives and accountants at Thornton Precision Components ("TPC"), the British subsidiary of NYSE-listed manufacturer of medical devices and aerospace products Symmetry Medical Inc. ("Symmetry"), for their roles in an accounting fraud that was so pervasive that it distorted the financial statements of the parent company. The SEC also instituted separate settled administrative proceedings against Symmetry and its CFO Fred L. Hite, which found that Hite failed to provide an internal audit status report concerning TPC to Symmetry's Audit Committee in July 2006. Although the internal audit status report had not uncovered the fraud at TPC, it did raise the potential for deeper problems there. Hite also failed to reimburse Symmetry for bonuses, other compensation, and Symmetry stock-sale proceeds he received while the fraud occurred at the subsidiary (as required by SOX Section 304). Hite agreed to pay a $25,000 penalty and reimburse $185,000 to Symmetry. For its part, Symmetry agreed to a cease-and-desist order against future financial reporting, books-and-records and internal controls violations.
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Other Defendants in Action:
