The Halliburton Company has agreed to pay an imposed $7.5 million dollar fine to the Securities Exchange Commission, 15:00 CDT, 3 August 2004.
The fine stems from misleading statements made by Halliburton to inflate their profit statements during 1998 through 1999.
Halliburton made significant changes to its accounting practices in 1998 and 1999. Halliburton had neglected to disclose the changes being made and the investors were misled about the company s financial well being.
During the same period, now Vice President Dick Cheney, was CEO of the company. SEC, in a public statement, said Cheney had cooperated fully with the investigation, and the SEC found no evidence of wrong doing by Cheney.
SEC launched an investigation of Halliburton in late May 2002 and said in its statement that it had reviewed 340,000 documents and sworn testimony from 23 people.
Halliburton Chairman Dave Lesar, said of the settlement: "We are pleased to bring closure to this matter".
The charges focused on the Houston-based oil services company, former Chief Financial Officer Gary Morris and former Controller Robert Muchmore.
In an agreement between Halliburton and Muchmore, Mr. Muchmore will pay a $50,000 dollar fine, and Hallibutron will pay $7.5 million.
Mr. Morris steadfastly maintains his innocence and will fight the settlement.