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Alere to pay $13M for accounting fraud charges

Jaclyn Jaeger | September 29, 2017

Medical manufacturer Alere has agreed to pay more than $13 million to settle charges that it committed accounting fraud through its subsidiaries to meet revenue targets and made improper payments to foreign officials to increase sales in certain countries.

The Securities and Exchange Commission issued an order finding that the South Korean subsidiary of Alere, which produces and sells diagnostic testing equipment, improperly inflated revenues by prematurely recording sales for products that were still being stored at warehouses or otherwise not yet delivered to the customers. According to the SEC order, Alere also engaged in improper revenue recognition practices at several other subsidiaries.

The SEC’s order also finds that Alere subsidiaries in India and Colombia obtained or retained business by using distributors or consultants to make improper payments to officials of government agencies or... To get the full story, subscribe now.