Friday, 29 May 2015

Nemesis in the guise of the SEC stirs


The New York Times has reported that the SEC settlement with CSC relating to its accounting irregularities may be voided due to disagreements within the SEC.

Details on:
http://www.nytimes.com/2015/05/29/business/political-fights-throw-sand-in-gears-of-sec.html

The article says that the SEC officials who are opposing the settlement may withdraw their disagreement in return for proceedings being brought against a former Controller of the company. This Financial Controller is not named. I may be wrong, wasn't Donald G DeBuck CSC's Corporate Controller at the time of the accounting irregularities?

Whoever the Controller involved is, it seems incredible that there could be SEC proceedings against him or her while the CEO and CFO at the time, Michael Laphen and Michael Mancuso escape punishment. What happened to the concept that "the buck stops at the top"??

Whatever; I cannot imagine Mike Lawrie is too pleased by the prospect of this SEC investigation reopening. 

20 comments:

Anonymous said...

Don DeBuck was the Controller at the time of the irregularities. The article you referenced did state that the SEC was also considering issuing complaints agains the former CEO and CFO. Since all of them were required to certify financial reporting and financial statements they are legally as culpable as DeBuck was.

Anonymous said...

This company is rotten.

Anonymous said...

All that money paid to lobbyists over the years seems to have worked.

Anonymous said...

Probably the best summary written so far:
http://www.forbes.com/sites/adamhartung/2015/05/31/csc-when-all-else-fails-split/

Anonymous said...

Unbelievable. . A market analyst who can see through the smoke and mirrors. .certainly my experience within GIS in the UK.. oh sorry. .desktop as a service... network as a service.. datacentre managing old tin... list goes on...

Anonymous said...

Munish Gupta (VP EBG Global Offerings) and Nabil Fanaian (VP EBG Global Mobility) welcomes Sam Lakkundi as Global Mobility and Social Offerings Lead.

Anyone would think that CSC is lining itself up for a sale to an Indian company by placing "Indians" in all the key roles globally, but not using anyone from CSC India.

But of course not, this is not the gameplan, oh no...

Anonymous said...

Dagger!

Anonymous said...

Sorry dint get the reference to CSC India staff not being placed in mgmt roles. Could you explain pls.

Anonymous said...

Parasites

Anonymous said...

agree with the Forbes analysis and the comments. reality and rhetoric...........................

Anonymous said...

Yes, if you are a CSC employee, just go into WorkDay and look at levels 3 and 4... All Indian Names.

Anonymous said...

What I meant 07:12 is that its absolutely pure coincidence that all layer 2-4 appointments globally are people with names from the Indian subcontinent?

I'm not trying to be racist (and I'll stress that I hate racism!) I'm just saying that this is not a case of CSC "offshoring" these management positions to lower cost places or promoting some of CSC India's very talented people to high places elsewhere in CSC (AUS, US, UK etc).... this is externally hiring people with one characteristic - that their face will fit to the new Indian owners of commercial CSC.

Actually, that's probably a racist hiring policy but the charge sheet is so full already that's there's no room to write that on it.

Anonymous said...

http://www.streetinsider.com/dr/news.php?id=10629002

Anonymous said...

The article references the fines and penalties the SEC has levied on Laphen. They are not much more than petty cash in relation to the millions Laphen collected in his 5 years as CEO plus his termination package. But will he actually pay anything out of his own pocket? I recall reading somewhere that CSC had indemnified him as part of his termination package.

What is truly surprising to me is the absence of SEC charges against Guy Hains, President of CSC Europe at the time of the NHS irregularities and the Danish accounting fraud. He was also the lead executive personally accountable for NHS. He collected the big performance bonuses, not Wakefield nor Edwards.

Anonymous said...

I too wonder how Guy Hains appears to have avoided SEC charges.


The detailed report in StreetInsider of what CSC was doing in these cases is revealing.
http://www.streetinsider.com/dr/news.php?id=10629002

Anonymous said...

There is an interesting piece in the New York Times about the negotiations between CSC and the UK NHS when the project was already in trouble. The article explains how CSC then used the results of these negotiations for their accounting fraud:

http://www.nytimes.com/2015/06/06/business/dealbook/britains-health-service-aided-struggling-computer-sciences.html?_r=0

It is an incredible indictment of the CSC executives involved in these negotiations. Until I read this article I wondered to what extent the accounting irregularities around NHS were due to negligence as opposed to being willful. I have no doubts any more!

Anonymous said...

Aren't Laphen and Mancuso. both Certified Public Accountants (CPAs)?

It would seem appropriate for the CPA Institute to instigate disciplinary proceedings against them for their roles in these accounting frauds, which the SEC described one of the biggest for years.

Exclusion from the CPA Institute, and the surrounding publicity, would be a well-deserved piece of public humiliation for these two. Or have they already voluntarily resigned their CPA memberships to prevent their exclusion?

Anonymous said...

Per the SEC ruling, Laphen "is denied the privilege of appearing and practicing before the Commission as an accountant with the right to apply for reinstatement after three years".

That decision should finish off any ideas he may have about non-exec directorships. Who would recommend to their shareholders to elect to the Board someone who has been disbarred by the SEC for fraud?

Anonymous said...

Everything goes full circle .... I wonder what we will read about Lawire in the future ....

Unknown said...

I know Nabil and he's of Iranian heritage, not Indian.