A federal jury has ruled that two former executives of Irvine-based computer maker Gateway Inc. manipulated earnings so that it would appear the company met Wall Street expectations.
The SEC action began in 2003 when the company was still based in San Diego.
Jurors found former chief financial officer John Todd and former controller Robert Manza violated anti-fraud and record-keeping laws and made false statements. The ruling was handed down Wednesday following three weeks of trial in U.S. District Court.
A judge will determine sanctions, but no date has been set.
“The desire to meet Wall Street analysts’ expectations is no excuse for accounting tricks and other deceptive practices,” Randall R. Lee, director of the SEC’s Pacific Regional Office in Los Angeles, told The Associated Press.
Davd Hallisey, a spokesman for the computer maker, said, “Gateway resolved the case long ago with the SEC and neither defendant has been affiliated with the company for over five years.”
Former chief executive Jeffrey Weitzen was named in the original SEC complaint, but charges were dismissed in May.
