SEC Targets Defense Contractor on Violation of Books-and-Records Requirements

SEC Targets Defense Contractor on Violation of Books-and-Records Requirements

January 19, 2017, Covington Alert

Contractors are used to the Defense Contract Audit Agency scrutinizing their internal accounting practices, but in a recent cautionary tale a contractor found itself in the crosshairs of another federal law enforcement agency: the Securities and Exchange Commission (SEC). In a settlement recently made public, defense contractor L3 Technologies, Inc. (L3) agreed to pay $1.6 million to settle charges it had violated SEC recordkeeping requirements.