James M. Schneider, the former Dell Inc. (DELL) chief financial officer who was sanctioned by U.S. regulators in 2010 for his alleged role in reporting false earnings at the company, was denied a bid to work on audit committees while serving a five-year suspension from accounting.
Schneider, who paid $3 million to resolve the Securities and Exchange Commission claims, asked the agency to clarify that his penalty would not preclude him from serving on the audit committee of a registered company or working as a “non-accountant CFO,” the SEC said today in an order denying his request.
Dell agreed to pay $100 million to resolve the SEC’s claims it failed to tell investors about “exclusivity payments” received from Intel Corp. (INTC) in exchange for not using products made by the chipmaker’s main rival. Those payments allowed Dell to reach earnings targets from 2001 to 2006, the SEC said.
Dell’s founder Michael Dell and former chief executive officer Kevin Rollins each agreed to pay $4 million to resolve the claims. Dell, Rollins and Schneider didn’t admit wrongdoing in settling the case.
Schneider’s proposed clarification “would exempt entire job titles from our order, regardless of what tasks or responsibilities those positions entailed,” the SEC said. “Granting such a request would undermine the remedial purpose of our order and the rule on which it is based.”
Neil Eggleston, Schneider’s attorney at Kirkland & Ellis LLP, declined immediate comment.
To contact the reporter on this story: Joshua Gallu in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Maura Reynolds at email@example.com