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SEC Settles Fraud Charges at Tech Firm

Tammy Whitehouse | June 5, 2015

Computer Science Corp. has agreed to pay $190 million to settle charges by the Securities and Exchange Commission that the company and former executives concealed from investors problems with a high-profile client and manipulated financial results, in addition to fudging with accounting at overseas units.
Five of eight former executives also agreed to settle charges as complaints proceed in federal court against three others. Former CEO Michael Laphen agreed to return to the company more than $3.7 million under the clawback provision of Sarbanes-Oxley and to pay a penalty of $750,000. Former CFO Michael Mancuso agreed to return nearly $400,000 in compensation and pay a penalty of $175,000.

The SEC says the fraud began when the company encountered difficulty meeting certain deadlines under its multibillion-dollar...

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