SEC to file fraud case against Xerox


The US Securities and Exchange Commission will file civil fraud charges against Xerox today along with details of a settlement agreement reached last week with the office equipment maker, the Washington Postreported.

The newspaper cited lawyers familiar with the SEC complaint as saying it would also likely provide a detailed look at the accounting-abuse case regulators are mulling against former Xerox executives and its former auditor KPMG.

The Wall Street Journalfirst reported yesterday that the SEC has contacted Xerox former chairman Mr Paul Allaire, former chief financial officer Mr Barry Romeril, and Mr Michael Conway, a KPMG partner who co-headed the Xerox audit, alerting them of the agency's intention to file charges and offering individuals an opportunity to dissuade it from doing so.

Xerox spokesman Ms Christa Carone said Xerox could not confirm that the notices had been sent, particularly since they involved individuals and not Xerox as a whole.

KPMG spokesman Mr George Ledwith said he was "not at liberty" to discuss individuals, but said the firm has been talking with the SEC staff about the possibility of a proceeding related to the audits of Xerox's financial statements.