Industrial conglomerate Tyco International, was subject to a series of investigations into its accounting practices by the SEC from 1999-2006. While the initial investigation in 1999 recommended no enforcement actions, by the time the SEC completed its final investigation in 2006 it alleged that Tyco had inflated its results by over US$1bn in 1996-2002. The alleged accounting fraud was committed using inappropriate acquisition accounting practices, and the incorrect revenue recognition of dealer connection fees. The SEC also alleged a failure to disclose and correctly account for executive bonuses. Tyco’s chairman and CFO were founded guilty of grand larceny, falsifying business records, securities fraud and conspiracy. Without admitting or denying the allegations in the SEC's complaint, Tyco accepted the final judgment and paid a US$50m civil penalty. Tyco is a confirmed fraud.

Last updated May 2023.

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