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Ex-Brixmor Property CEO, CFO Charged in Accounting Fraud (2)

Aug. 1, 2019, 6:42 PMUpdated: Aug. 1, 2019, 9:05 PM

Brixmor Property Group Inc.’s former CEO and ex-CFO were charged with plotting to manipulate income at the New York-based shopping-center owner.

Michael Carroll, who was chief executive officer, and Michael Pappagallo resigned in February 2016 following a discovery by the company’s audit committee that employees were “smoothing” income to make quarterly results more consistent and within guidance issued by the company.

Carroll and Pappagallo manipulated reported same-store net operating income “to fraudulently convey to the investing public that Brixmor was accomplishing predictable, consistent and stable growth quarter after quarter,” prosecutors said in an indictment unsealed Aug. 1.

The two men, ...