Fluor To Pay $14.5 Mln To Settle SEC Charges Over Improper Accounting
Nasdaq (RTTNews) - The U.S. Securities and Exchange Commission today announced that Irving, Texas-based Fluor Corp. (FLR) will pay $14.5 million to settle charges stemming from the company's improper accounting on two large-scale, fixed-price construction projects. Five former and current officers and employees also agreed to settle related charges for causing Fluor's violations.
Similarly, without admitting or denying the SEC's findings, the officers and employees consented to cease and desist from committing or causing the relevant violations and to pay penalties ranging from $15,000 to $25,000.
The SEC's order found that Fluor bid on the two projects relying on overly optimistic cost and timing estimates and subsequently experienced cost overruns that worsened over time. Fluor then failed to sufficiently maintain internal controls to account for the projects in accordance with the percentage of completion accounting method under U.S. generally accepted accounting principles (GAAP).
