PLAINFIELD, Ind.-Brightpoint Inc. has reached an agreement with the Securities and Exchange Commission to settle the investigation that was being conducted by the commission.
Under the settlement, the company has entered an administrative order to cease and desist from violations of the anti-fraud, books and records, internal controls and periodic reporting provisions of the Securities Exchange Act of 1934 and the anti-fraud provisions of the Securities Act of 1933. The order comes in accordance with the settlement that alleges that Brightpoint committed fraud through the purchase and use of an insurance policy to misrepresent its losses as insured losses. The company will also pay a $450,000 fine. Brightpoint has restated financial statements to account for payments made under the insurance policy.
“This settlement will enable Brightpoint’s current management team to focus on the company’s core business and represents the final step in resolving all stockholder and regulatory matters relating to the 1998 purchase of the purported insurance policy,” said Jerre Stead, Brightpoint’s lead independent director. “Brightpoint has instituted best practices in corporate governance and adopted strict internal controls, which are designed to avoid these types of issues in the future.”
