Healthcare IT and advanced visualization developer Merge Healthcare of Milwaukee has settled a multiyear investigation by the U.S. Securities and Exchange Commission (SEC).
The SEC investigation was related to the conduct of two of Merge's executives and the circumstances that led to a restatement in 2006 of the company's 2002 through 2005 financial statements, the company said.
The complaint charged the company with record-keeping violations, and charged two of its former executives with accounting fraud. In settling the investigation, the SEC decided not to charge the company with fraud nor assess any penalty against the company for the actions of its former executives. Merge changed much of its management team when investment firm Merrick RIS bought a controlling stake in the company in 2008.
According to the Associated Press, former Merge chief executive Richard Linden of Barrington, IL, and former chief financial officer Scott Veech of Whitefish Bay, WI, 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 officers or directors of public companies for five years.
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