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May 2, 2008

The U.S. Securities and Exchange Commission says that two UT-Starcom executives have been fined, settling allegations of false financial reporting.

UT Starcom was accused of improperly accounting for compensation expenses around stock options.

The company was also accused of failing to disclose related party transactions and improperly recognizing $400 million in sales.

Overall, UTStarcom CEO Hong Liang Lu was fined $100,000 and former CFO Michael Sophie was fined $75,000.

Neither executives admitted or denied any of the accusations.

Along with the various fines, the company has agreed to a permanent injunction against any future violations of the reporting, books-and-records and internal control provisions of the U.S. federal securities laws.

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Source: The S.E.C.