Health care Services Team has agreed to pay $six million to settle prices that its CFO unsuccessful to document decline contingencies from lawful liabilities to inflate its earnings.
According to the U.S. Securities and Trade Commission, the accounting violations resulted in HCSG’s earnings getting misstated for six quarters concerning the 1st quarter of 2014 and the fourth quarter of 2015.
Experienced CFO John Shea “properly recorded the money affect of the decline contingencies at the time they were being probable and fairly estimable, the enterprise would have described reduced EPS and missed study analysts’ consensus EPS estimates in quite a few of the applicable quarters,” the SEC stated in an administrative order.
To settle the prices, HCSG and Shea agreed to pay civil penalties of $six million and $fifty,000, respectively. Shea also agreed to be suspended from appearing and practicing ahead of the SEC as an accountant, which signifies he