KFDA - NewsChannel 10 / Amarillo, TX: newschannel10.comMerge Healthcare, 2 execs settle fraud charges
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MILWAUKEE (AP) - Milwaukee-based Merge Healthcare Inc. and two former senior executives have settled charges by the Securities and Exchange Commission alleging accounting fraud that caused the company's stock to plummet by two-thirds in a seven-month period.
Merge, former Chief Executive Richard Linden of Barrington, Ill., and former Chief Financial Officer Scott Veech of Whitefish Bay, Wis., agreed to a settlement without admitting the allegations. Linden will pay $590,000 and Veech will pay $280,000. Both are barred from serving as officer and director of a public company for five years.
The SEC alleges Linden signed at least 16 and Veech signed at least 14 misleading letters to Merge's outside auditors and improperly recognized revenue from sales that hadn't been completed.
Shares of the medical imaging company fell 3 cents to close at $3.65 on Wednesday.
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