X hits on this document





15 / 40

40.C&A continued to improperly recognize rebates on future purchases of goods and services through the third quarter of 2004, the last quarter for which C&A filed a quarterly or annual report with the SEC.  This included rebates from Angell Manufacturing ($97,197), Exxon ($44,000), and Trim Stamping ($227,850).

41.C&A never filed a report with the SEC reflecting the fourth quarter of 2004.  However, during the fourth quarter C&A continued to record rebates in income improperly, including rebates from Aerotek ($40,000), Vichem ($75,000), and Meurdter ($69,000).  The fraudulent accounting for these rebates was included in earnings figures released by C&A in March 2005.

42.Stockman was aware of, approved, and directed the scheme to increase income by prematurely recognizing rebates on supply contracts. Stockman knew, or was reckless in not knowing, that C&A was not entitled to the rebates if it did not provide the promised future business, and that C&A's immediate recognition of the rebates in income was improper.  Stockman also participated personally in many of the rebate transactions, including Exxon, Flambeau and Reko.  Stepp supervised Galante in the negotiation of the Reko rebate, participated in Purchasing Department meetings at which the rebate scheme was discussed, and knew that the Flambeau agreement had been "papered" so as justify immediate recognition of the rebate in income.  Jones was aware of the rebate scheme as it related to the Fabrics Division, participated in the meeting where Stockman directed Fabrics Division personnel to negotiate rebates, and understood that his employees were obtaining false documentation for such rebates.  Cosgrove advised C&A's Purchasing Department on the language for the side letters, knowing that these letters were false or misleading and designed for use in improperly accounting for the rebates.  Barnaba

Document info
Document views65
Page views65
Page last viewedMon Oct 24 10:55:02 UTC 2016