WASHINGTON -(Dow Jones)- A former Akorn Inc. (NASDAQ-NMS:AKRX) (AKRX) chief financial officer Monday lost an appeal to overturn an administrative sanction by the Securities and Exchange Commission over her approval of a year 2000 financial report that inflated the company's results.
Rita McConville, the former Akorn officer, was sanctioned in an administrative proceeding with a cease-and-desist order. An appeal to have the order overturned was rejected by the SEC in 2005. The 7th U.S. Circuit Court of Appeals in Chicago also rejected an appeal of the order in 2006.
The SEC's case against McConville said she approved inflated company results and misrepresented the facts to independent financial auditors.
Akorn restated its results for 2000 and 2001 in October 2002, saying it had understated expenses for bad debts. After the adjustments, the Illinois-based company reported a net loss of $2.4 million for 2000, where it had previously reported $2.1 million of net income.
The case is McConville v. SEC, 06-1382.
-By Mark H. Anderson, Dow Jones Newswires; 202 862-9254; mark.anderson@ dowjones.com
(END) Dow Jones Newswires 10-01-07 1032 Copyright (c) 2007 Dow Jones & Company, Inc.
