FOR IMMEDIATE RELEASE
2022-31
The Securities and Exchange Commission today announced settled charges and an $18 million penalty against Baxter International Inc. for engaging in improper intra-company foreign exchange transactions that resulted in the misstatement of the company’s net income. The SEC also announced settled charges against Baxter’s former treasurer and assistant treasurer, Scott Bohaboy and Jeffrey Schaible, respectively, for their misconduct related to these transactions.
The SEC’s order against Baxter finds that the company violated the negligence-based anti-fraud, reporting, books and records, and internal accounting controls provisions of the federal securities laws. From at least 1995 to 2019, Baxter used a convention to convert non-U.S. dollar denominated transactions and assets and liabilities on its financial statements that was not in accordance with U.S. GAAP or generally accepted accounting principles. Beginning in at least 2009, Baxter exploited the convention to enter into intra-company foreign exchange transactions for the sole purpose of generating foreign exchange accounting gains or avoiding foreign exchange accounting losses.
"It is critical that companies that identify wrongdoing proactively come forward and cooperate with the SEC staff," said Paul Montoya, Associate Regional Director of the SEC’s Chicago Office. "Baxter’s self-reporting and substantial cooperation in working with the staff in this complex investigation was an important...
A Sheffield councillor who came under fire for allegedly sharing a video promoting stem cell treatment for autism says the claims are "false". It is understood that Mustafa Ahmed, Green Councillor...