The SEC (Securities & Exchange Commission) has filed a summary judgment against two former employees of Bridgewater, NJ-based Synchronoss Technologies, Inc. They are the former CFO, Karen Rosenberger, and the former Synchronoss controller, Joanna Lanni. The two engaged in accounting misconduct that led to the company’s overstatement of revenue. This led to the company meeting revenue expectations that it would not have otherwise.
The SEC’s complaint details that Rosenberger aided and abetted the company’s public filing of false financial statements regarding five of Synchronoss’ transactions and engaged in fraud with three of them. The company had to later restate the five transactions. Two of these transactions were with AT&T, one of Synchronoss’s largest customers. Another transaction involved the company’s acquisition of another business.
The SEC also alleges that Rosenberger worked to conceal both her misconduct and the company’s when she lied to the auditor about those transactions. This led to falsifying Synchronoss’ books and records, circumventing the company’s accounting controls by failing to implement or maintain correct records.
Additionally, the SEC alleges that Lanni assisted and encouraged incorrect revenue recognition, falsified the company’s books and records, and circumvented the company’s accounting controls. She also provided a misleading memorandum to the auditor for one of the five disputed transactions. The impact of the incorrect accounting had material repercussions, such as falsely meeting revenue expectations when it did not.
These issues were uncovered in an internal investigation in 2018, after both women left the company.
Are You Aware Of Fraud At Your Company? Retain Our Experienced SEC Whistleblower Attorneys
If you are aware of accounting or other financial related misconduct at your company, you can report it to the proper authorities. Have you already reported your concerns internally to your company, but no one is interested? We can help if you’d like to become a SEC whistleblower and put a stop to the misconduct.
Whistleblowers help everyone by notifying the SEC of conduct that harms the investing public, while also earning financial compensation for themselves. Hiring experienced SEC counsel may greatly increase the probability that the SEC will initiate an investigation based on your information. If you wish to remain anonymous, you must be represented by an attorney, who will submit everything on your behalf.
Our experienced SEC whistleblower attorneys, including a former SEC Enforcement attorney, can help you if you have information regarding securities or investment fraud, violations of federal securities laws, false filings, market manipulation, or other misconduct. You must provide timely, credible, and original information or analysis to be eligible.
Contact us through our online form or at (800) 975-4345 for a consultation. Our attorneys work on a contingency fee basis. This means that it costs you nothing to hire us, and we collect our fees only if you receive an SEC bounty. Because we get paid when you do, we have the incentive to help you collect the maximum award available.