Bloomberg Tax
March 31, 2023, 6:27 PM

SEC Charges Executives at Austal’s US Unit With Accounting Fraud

Lin Cheng

The SEC charged three executives of Austal USA for orchestrating a fraudulent revenue recognition scheme that allowed its parent company to meet or exceed analyst expectations, according to a statement.

  • SEC alleged the executives engaged in a scheme to artificially reduce the cost estimates to complete certain shipbuilding projects for the US Navy “by tens of millions of dollars”
  • Alleged Austal Limited, Austal USA’s parent company, prematurely recognized revenue and, as a result, met or exceeded analyst consensus estimates for EBIT
  • Former president Craig D. Perciavalle, current director of financial analysis Joseph A. Runkel, and former director of the Littoral ...

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