Defendant Name: IEC Electronics Corp.

Defendant Type: Public Company

Document Reference: 2016-110

Document Details

Legal Case Name In the Matter of IEC Electronics Corp., Ronald J. Years, CPA, and Donald S. Doody
Document Name SEC Bars Corporate VP and Controller for False Accounting
Document Date 08-Jun-2016
Document Format Administrative Proceeding
File Number 3-17278
Allegation Type Issuer Reporting and Disclosure
Document Summary On June 8, 2016, the SEC announced that it "barred a former corporate vice president and suspended a former controller behind false accounting at a New York-based electronics company." The SEC also stated that: "IEC's former CEO William 'Barry' Gilbert was not accused of any wrongdoing but has voluntarily returned $42,072 in incentive-based compensation and stock sale profits as well as 19,616 shares of company stock. Therefore it wasn't necessary for the SEC to pursue a clawback action under Section 304 of the Sarbanes-Oxley Act."

Related Documents:

34-78017 08-Jun-2016 Administrative Proceeding
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
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."

Other Defendants in Action:

Donald S. Doody
Ronald J. Years, CPA