Computer Sciences Corp., an IT solutions provider based in Falls Church, Va., has agreed to settle allegations with the Securities and Exchange Commission for accounting fraud. CSC will pay a $190 million penalty to settle the charges. Company executives will also pay individual settlements totaling approximately $4 million.
The SEC filed complaints that CSC was manipulating financial results and concealing issues with a new, high-profile contract. According to the allegations, CSC learned it was unable to meet deadlines and risked losing money on a multi-billion dollar contract with the United Kingdom's National Health Service. To mediate this loss, CSC finance executives altered accounting models to artificially increase company profits, according to the SEC.
CSC and the five executives who are paying settlements neither admit or deny wrongdoings.
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