Krispy Kreme agrees to cease-and-desist order

Krispy Kreme improperly accounted for its incentive compensation plan for senior executive officers and for three transactions related to the acquisition of company franchises in order to manipulate its earnings reports, the SEC said.

http://finance.yahoo.com
March 4, 2009

Krispy Kreme agrees to cease-and-desist order
Krispy Kreme agrees to settle SEC investigation with cease-and-desist order
Mae Anderson

NEW YORK (AP) — The Securities and Exchange Commission and doughnut maker Krispy Kreme Doughnuts Inc. said Wednesday they agreed to a cease-and-desist order to resolve an investigation that found the company misrepresented its earnings.

The SEC said Krispy Kreme misrepresented its earnings in financial statements filed with the SEC between the fourth quarter of fiscal 2003 and the fourth quarter of fiscal 2004.

Krispy Kreme improperly accounted for its incentive compensation plan for senior executive officers and for three transactions related to the acquisition of company franchises in order to manipulate its earnings reports, the SEC said.

Krispy Kreme was ordered to cease and desist from committing or causing violations and future violations of securities laws related to filing accurate earnings reports with the SEC, maintaining accurate books, records and accounts in reasonable detail and maintaining a sufficient system of internal accounting controls.

In a statement, Winston-Salem, N.C.-based Krispy Kreme said it did not admit or deny any findings.

"We are pleased that the SEC investigation has concluded on satisfactory terms, with no monetary penalty against the company," said Darryl R. Marsch, senior vice president and general counsel for Krispy Kreme.


Risks: Misrepresentations, U.S. Securities and Exchange Commission, SEC, Cease-and-desist court judgement, Accounting, creative, United States, 20090304 Krispy Kreme

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