Ex-Enterasys exec settles with SEC
Former Enterasys Controller Anthony Hurley has agreed to pay more than $30,000 to the Securities and Exchange Commission to settle a civil complaint that he participated in a company-wide scheme to fraudulently inflate revenues at the company when it was spinning off from the Rochester-based Cabletron between March 2000 and December 2001, the SEC announced Thursday.
Hurley agreed to pay back the “ill-gotten gains” without admitting charges that he participated in two methods to deceive auditors and stockholders: one involving an undisclosed side agreement making reported sales tenuous, and using “investments” in other companies to buy Enterasys’ own products through a distributor.
Hurley had already pleaded guilty to one count of wire fraud when faced with similar criminal charges in exchange for testifying against five other former executives, four of whom were convicted by a jury in December after a month-long trial in U.S. District Court in Concord.
The defendants are scheduled to be sentenced on April 16 and 17. Hurley is scheduled to be sentenced on April 19. – BOB SANDERS