It’s a press release kind of day. Here is another about the settlement between Interpublic and the SEC. The SEC has been looking into the financial reporting practices of the company and its subsidiary, McCann-Erickson, since 2002. Basically, McCann gave their parent company tweaked financials to hide their accounting issues. After a three-month internal investigation, which uncovered accounting irregularities, centered on double-booking of revenue, at the agency’s European operations, IPG got rid of Salvatore LaGreca, vice chairman and CFO of McCann. What a mess. His replacement, Arthur E. D’Angelo, began reporting straight to Interpublic rather than the CEO of McCann. Gotta watch the kids!
“While neither admitting nor denying the allegations brought by the SEC, Interpublic and McCann have agreed to an injunction against violating the applicable provisions of the federal securities laws, and McCann has agreed to pay a civil penalty of $12 million and disgorgement of one dollar.”