UPDATE 1-SEC settles with ex-ConAgra execs over accounting
(Recasts, adds ConAgra comment, two defendants)
NEW YORK, July 2 (Reuters) - U.S. securities regulators have settled complaints against six former ConAgra Foods Inc. (CAG.N) executives, alleging they engaged in improper accounting practices that misstated company profits between 1999 and 2005.
The U.S. Securities and Exchange Commission said on Friday that the defendants have agreed to pay in total more than $1.7 million in civil penalties, disgorgement and prejudgment interest.
The defendants include former Chief Financial Officer James P. O'Donnell, former corporate controllers Jay D. Bolding and Kenneth W. DiFonzo, and former Vice President of Taxes Debra L. Keith.
The SEC also settled with Dwight Goslee, ConAgra's former executive vice president of operations and control, and Harry Hill, the former director of corporate accounting.
The defendants settled with the SEC without admitting or denying the charges, the agency said. Attorney contacts for the defendants could not immediately be obtained.
ConAgra said the company is cooperating with the SEC. "These filings are related to individual settlements involving former employees of ConAgra Foods," ConAgra spokeswoman Stephanie Childs said.
The SEC had alleged that Omaha, Nebraska-based ConAgra failed to record adequate income tax expense in fiscal 1999 and improperly reduced excess reserves in fiscal 1999 through 2001.
The complaint also accuses ConAgra's corporate tax department of numerous errors, allowing the company to understate its income tax expense and overstate profit from fiscal 2002 through 2005.
The SEC says the errors led ConAgra to misstate its income before income taxes by nearly $112.8 million, and to overstate its net income and earnings per share between the fourth quarter of fiscal 1999 and the third quarter of fiscal 2001.
ConAgra also misstated its income tax expense by $105 million, the SEC complaint alleges.
In April 2005, ConAgra restated its results for fiscal 2002 through 2004 and the first half of fiscal 2005.
In January the SEC sued three former executives in ConAgra's fertilizer business for overstating operating income in fiscal years 1999 and 2000.
Last year, ConAgra, which makes Hebrew National hot dogs, Peter Pan peanut butter and other packaged foods, agreed to pay $14 million to settle a 2001 shareholder lawsuit related to accounting issues at the company's United Agri Products unit. Shareholders brought the suit following the company's 2001 restatement of earnings related to the unit.
(Reporting by Sarah Coffey and Karey Wutkowski in Washington)
((Editing by Tim Dobbyn; Reuters Messaging sarah.coffey.reuters.com@reuters.net; New York Newsroom +1 646 223 6024)) Keywords: CONAGRA SEC/
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