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UPDATE 1-Diebold CFO gets Wells notice, steps down

Wed Mar 25, 2009 10:25am EDT

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* Former employees also receive Wells notices * Says possible that company will also receive a notice

* Names Leslie Pierce interim CFO

March 25 (Reuters) - ATM maker Diebold Inc (DBD.N) said its finance chief, Kevin Krakora, received a "Wells notice" from the U.S. Securities and Exchange Commission related to an ongoing investigation and had stepped down.

The company's prior CFO and other former employees in its finance organization have also received Wells notices related to items addressed in the company's previously filed restated financial statements, Diebold said.

The Wells notices indicate that the SEC staff is considering recommending that the SEC bring civil enforcement actions against the individuals alleging that they violated federal securities laws, Diebold said.

It is possible that the SEC will issue the company a Wells notice in connection with the probe, Diebold added.

There can be no assurance that Diebold will be able to successfully resolve this matter with the SEC, or that any such resolution will not have a material adverse impact on the company's financial condition, liquidity or results, it said in a statement.

Krakora will continue to serve in a non-financial position pending resolution of the matter. Leslie Pierce, vice president and corporate controller, was named interim CFO.

Shares of the company were up 1 percent at $23.02 in morning trade on the New York Stock Exchange. (Reporting by Bijoy Koyitty in Bangalore; Editing by Himani Sarkar)



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