SAN DIEGO, March 9 (UPI) -- A federal jury ruled U.S. computer company Gateway Inc.'s former chief financial officer manipulated earnings and revenue, U.S. regulators said.
The jury agreed John Todd was the architect of a plan in 2000 to "close the gap" between analysts' expectations and Gateway's anticipated revenue through improper transactions, the Securities and Exchange Commission said.
The lawsuit, launched by the SEC in 2003 and tried before the U.S. District Court in San Diego, also alleged then-Controller Robert Manza initiated one of the transactions and knowingly prepared financial statements that did not comply with generally accepted accounting principles, Financial Week reported.
The jury found both defendants guilty on all charges, including fraud, making false statements to accountants, violating record-keeping provisions of federal securities laws and aiding and abetting Gateway's violations of those laws, the SEC said.
Todd's lawyer said he would ask the judge to overturn the jury's findings.
