On Dec. 18, SEC charged Panasonic executives with accounting fraud.
- Paul Margis, CEO of Panasonic Avionics used a third party to pay over $1.76mn
to consultants, including government official who was offered a consulting position.
- This would assist in obtaining and retaining business from a state-owned airline.
- Company falsely recorded payments, and Margis circumvented company procedures.
- Margis made false statements to Panasonic auditor re adequacy of internal controls.
- Takeshi Uonaga, CFO of Panasonic caused the improper recording of $82mn revenue.
- Made false statements to auditor re statements, internal controls, books and records.
- Defendants Margis and Uonaga to pay penalties of $75,000 and $50,000, respectively.
- Uonaga suspended from appearing or practicing before the Commission as accountant.
- Thich includes not participating in the financial reporting or audits of public companies