SEC Charges Former Executives and Accountants With Fraud at British Subsidiary of Symmetry Medical

The Securities and Exchange Commission today charged four former senior executives and accountants at the British subsidiary of Symmetry Medical

for their roles in an accounting fraud that was so pervasive that it distorted the financial statements of the parent company. The SEC also reached settlements with the company's former CEO and current CFO, who were not involved or aware of the scheme at the subsidiary, to recover bonus compensation and stock profits they received while the fraud was occurring and inflating company profits. The SEC alleges that vice president for European operations Richard J. Senior, finance director Matthew Bell, controller Lynne Norman, and management accountant Shaun P. Whiteley orchestrated and carried out the fraud at Thornton Precision Components, which is the Sheffield, England-based subsidiary of Symmetry. The accounting scheme involved the systematic understatement of expenses and overstatement of assets and revenues at TPC, and materially distorted Symmetry's financial statements for a three-year period. According to the SEC's complaint filed in federal court in South Bend, Ind., Symmetry's annual financial statements for 2005 and 2006 as well as other reporting periods were materially misstated as a result of misconduct in the reporting of TPC's financials. Senior, Bell and Norman made false certifications as to the accuracy of the financial information reported to Symmetry by TPC, and lied to TPC's outside auditors. Meanwhile, Senior and Bell each received bonuses and sold Symmetry stock at prices they knew or recklessly disregarded were fraudulently inflated by the accounting fraud taking place at TPC.