Conn’s to Pay $1.1 Million SEC Fine for Overstating Income

Texas-based furniture chain Conn’s Inc. agreed to pay a $1.1 million fine to end an SEC suit over problems related to a faulty forecasting model.

Conn’s understated the allowance for doubtful accounts and overstated its income on financial statements, according to court documents the Securities and Exchange Commission filed in the U.S. District Court for the Southern District of Texas July 15.

• The model Conn’s used to forecast doubtful accounts allowance included management bias, SEC alleged.
• Conn’s management, including former chief operating officer Michael J. Poppe, negligently applied the model, SEC said.
• Poppe also agreed to a $50,000 fine ...