Former Dollar General C.F.O. Settles with SEC
GOODLETTSVILLE, Tenn. -- Brian Burr, the former c.f.o. of Dollar General Corp. here, has reached a settlement with the U.S. Securities and Exchange Commission over charges of accounting fraud and insider trading from 1999 to 2000.
According to the Nashville Business Journal, Burr consented to the settlement in the U.S. District Court for Middle Tennessee without admitting or denying wrongdoing. He agreed to pay $1.2 million in civil penalties. Additionally under the settlement, he cannot serve as an officer or director of a public company for five years.
According to the SEC, Dollar General's accounting staff discovered that in 1999 and 2000 the company failed to recognize $13.4 million in import freight expenses. Burr allegedly discussed alternative ways to account for those expenses, in part to meet bonus targets for Dollar General employees, including himself, and to also meet analysts' expectations.
Additionally, the SEC claimed that Burr engaged in insider trading by exercising stock options in the weeks prior to an April 30, 2001 press release from the company announcing accounting irregularities and the need to restate of earnings.
Settlements by four other officers, including former c.e.o. Cal Turner Jr., were reached earlier. The company itself made a settlement payment of $10 million in April 2005.
According to the Nashville Business Journal, Burr consented to the settlement in the U.S. District Court for Middle Tennessee without admitting or denying wrongdoing. He agreed to pay $1.2 million in civil penalties. Additionally under the settlement, he cannot serve as an officer or director of a public company for five years.
According to the SEC, Dollar General's accounting staff discovered that in 1999 and 2000 the company failed to recognize $13.4 million in import freight expenses. Burr allegedly discussed alternative ways to account for those expenses, in part to meet bonus targets for Dollar General employees, including himself, and to also meet analysts' expectations.
Additionally, the SEC claimed that Burr engaged in insider trading by exercising stock options in the weeks prior to an April 30, 2001 press release from the company announcing accounting irregularities and the need to restate of earnings.
Settlements by four other officers, including former c.e.o. Cal Turner Jr., were reached earlier. The company itself made a settlement payment of $10 million in April 2005.