Huron Consulting Group, one of the largest healthcare consulting firms in the U.S., agreed to pay $1 million in disgorgement and penalties for alleged accounting violations that caused the publicly traded firm to inflate its pre-tax income by 69% in one year.
Former Huron Chief Financial Officer Gary Burge agreed to pay $228,000 and former Chief Accounting Officer Wayne Lipski agreed to pay $66,000 to settle the charges. Both amounts included $50,000 in penalties, the SEC said in a statement. Both men resigned from Huron concurrent with a 2009 restatement of earnings related to the accounting issues, a Huron spokeswoman said.
The Securities and Exchange Commission found (PDF) that the firm misstated the financial impact of four companies it acquired by not properly disclosing that some of the money that went to shareholders of the acquired firms should have been recorded as compensation to employees who stayed on at those firms.