WASHINGTON, July 30 U.S. regulators charged the
chief executive and former chief financial officer of
Florida-based computer equipment company QSGI Inc on
Wednesday with misleading outside auditors and investors about
internal control deficiencies over the company's finances.
The Securities and Exchange Commission said that QSGI CEO
Marc Sherman is planning to fight the charges in the agency's
in-house court. The company's former CFO Edward Cummings is
settling the case, paying a $23,000 penalty and agreeing to a
five-year ban from practicing as an accountant before the SEC.
The SEC alleges that the men violated provisions of the 2002
Sarbanes-Oxley law after they falsely certified in a 2008 report
that they had disclosed all major deficiencies in the company's
internal controls. The next year, the company filed for
(Reporting by Sarah N. Lynch; Editing by Eric Beech)