BISYS slapped with $25 million fine

The BISYS Group will pay $25 million to settle charges of faulty bookkeeping and reporting, the SEC said.

The BISYS Group will pay $25 million to settle charges of faulty bookkeeping and reporting, the SEC said.
The Roseland, NJ-based company is a leading provider of financial products and support services.
The SEC said the company violated the financial reporting, books-and-records, and internal control provisions of the Securities Exchange Act of 1934.
The regulator also alleges that BISYS received approximately $20 million in ill-gotten gains as a result of its issuance of convertible debt, stock, and options at prices that were inflated as a result of its violations.
BISYS has agreed to settle the case, without admitting or denying the SEC’s allegations.
“This is a case study in internal control failures under earnings pressure,” said Mark K. Schonfeld, director of the commission’s New York Regional Office.
“The settlement delivers meaningful relief to investors harmed by BISYS’s misconduct.”