Former finance chief of DGSE settles accounting fraud charges

WASHINGTON Tue May 27, 2014 5:00pm EDT

WASHINGTON May 27 (Reuters) - Dallas jewelry company DGSE Companies Inc and its former chief financial officer agreed to settle accounting fraud charges, the U.S. Securities and Exchange Commission said on Tuesday.

The company and its finance chief materially inflated the value of inventory, the SEC said.

I. John Benson agreed to pay a $75,000 penalty and will be barred from serving as an officer or director of a public company, or practicing as an accountant on behalf of any entity regulated by the SEC, the agency said.

The SEC formed a task force last year to police accounting fraud. SEC Chair Mary Jo White said last month the agency had related investigations under way.

(Reporting by Aruna Viswanatha; Editing by Peter Cooney)