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SEC settled charges telecom service company executives with accounting fraud

The Securities and Exchange Commission charged Tangoe Inc., formerly a public telecommunications expense control corporate, and four of its executives for allegedly the usage of fraudulent accounting practices to artificially boost corporate revenues. Tangoe Inc. allegedly improperly known roughly $40 million of revenue out of a total of $566 million reported between 2013 and 2015, in line with the SEC complaint. Tangoe did this by allegedly reporting revenue upfront for paintings that had now not been carried out, together with carrier prepayments, and by recording transactions that did not produce any exact revenue. Donald J. Farias, the previous senior vice chairman of expense control, allegedly falsified trade information, a few of which were supplied to Tangoe's external auditors. The SEC charged the previous CEO Albert R. Subbloie, former CFO Gary R. Martino, and former vice chairman of finance Thomas H. Beach with violating provisions of the federal securities laws. Tangoe agreed to settle the charges and to pay a penalty of $1.5 million. Subbloie, Martino, and Beach have also settled charges and agreed to pay $100,000, $50,000, and $20,000, respectively. All settlements are topic to courtroom approval and not one of the defendants have admitted or denied the allegations. The case against Farias continues.

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