Ingram Micro says the SEC plans to take action against the distributor for improper record-keeping related to its McAfee business.Ingram Micro acknowledged May 21 that the Securities and Exchange Commission had issued it a "Wells Notice," alerting the distributor that the SEC intends to take action against it for improper record-keeping related to Ingram Micro's business with security vendor McAfee.
The notice indicates that SEC staff intend to recommend that the SEC institute an "administrative proceeding" contending that Ingram Micro failed to maintain adequate books and records relating to its transactions with McAfee between 1998 and 2000, officials of Ingram Micro, based in Santa Ana, Calif., and Williamsville, N.Y., said in a statement.
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SEC officials indicated that mishandling of records by Ingram Micro caused McAfee to do the same, for which it was cited previously for violations of securities laws, Ingram said. McAfee reached a settlement with the agency for those violations in January 2006.
Ingram Micro officials said the company is cooperating with the government in the investigation, which it first made public in the third quarter of 2004.
Ingram Micro officials said in a statement that the company believes "resolution of this matter with the SEC will not have a material adverse impact to the company's financial condition, but may have a material impact on the results of operations or cash flows for the quarter in which the matter is resolved."
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