Defendant Name:
IEC Electronics Corp.
Defendant Type:
Public Company
SIC Code:
3672
CUSIP:
44949L10
Document Reference:
34-78017
Document Details
Legal Case Name
In the Matter of IEC Electronics Corp., Ronald J. Years, CPA, and Donald S. Doody
Document Name
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Sections 4C and 21C of the Securities Exchange Act of 1934, and Rule 102(e) of the Commission's Rules of Practice, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
Document Date
08-Jun-2016
Document Format
Administrative Proceeding
AAER
3782
Allegation Type
Issuer Reporting and Disclosure
Document Summary
On June 8, 2016, the SEC instituted settled administrative and cease-and-desist proceedings against IEC Electronics Corp., Ronald J. Years, CPA, and Donald S. Doody. According to the SEC: "IEC Electronics Corp. ('IEC') filed false financial statements for Q3 2012, FYE 2012, and Q1 2013 as a result of misconduct that occurred at IEC's now-former subsidiary, Southern California Braiding, Inc. ('SCB'). Former SCB controller, Ronald Years, and former IEC executive vice president of operations, Donald Doody, engaged in misconduct relating to SCB's work-in-process inventory ('WIP'). Years made false accounting entries into a WIP spreadsheet that Years prepared, and these entries were based in part on amounts provided by Doody to Years that were false. Years and Doody also kept material in WIP that had already been used and added inventory to WIP that was missing. Years and Doody engaged in this misconduct to meet SCB's budgeted gross profit margins ('GPMs'). In addition, Years failed to consider the percentage completion of WIP and consequently capitalized too many weeks of labor and overhead costs to WIP. As a result of Years' and Doody's misconduct, IEC materially understated cost of goods sold, and materially overstated gross profit and net income before taxes in its financial statements for Q3 2012 and FYE 2012, and, in the case of Years, Q1 2013. In Q2 2013, IEC's then-CFO discovered potential issues with respect to SCB's WIP, and after IEC determined that the prior accounting was incorrect, it announced the need for a restatement in May 2013 and filed the restatement in July 2013."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Monetary Penalties:
Civil Penalty
Individual:
$200,000.00
Shared:
Other Defendants in Action:
