Granite Construction fined $12M over exec accounting fraud scheme
A California-based civil engineering and infrastructure firm agreed to pay $12 million to settle charges levied by the Securities and Exchange Commission (SEC) alleging fraud related to inflation of the company’s financial performance.
Granite Construction self-reported alleged misconduct carried out by Dale Swanberg, a former senior vice president and group manager at the firm, the SEC announced Thursday. While Granite settled, subject to court approval, without admitting or denying the agency’s findings, Swanberg was charged separately in U.S. District Court for the Northern District of California.
The charges in each complaint centered on Swanberg’s management of a subdivision at the company that was struggling in 2017 to meet financial goals. The project faced high costs, which dragged down its revenues. Swanberg altered the project’s financial statements by manipulating profit margins and failing to record the costs, the SEC alleged.