May 01, 2017
MagnaChip Semiconductor Corporation, Margaret Hye-Ryoung Sakai
SANCTION AMOUNT: $3,135,000
Defendants: MagnaChip Semiconductor Corporation
Margaret Hye-Ryoung Sakai
The SEC found that Respondent MagnaChip engaged in a "panoply" of accounting tricks to overstate revenues for nearly two years. The then-CFO, Sakai, allegedly directed or approved, among other things, recognition of revenue on sales of incomplete or unshipped products, and delayed booking of obsolete or aged inventory. Pressure on employees each quarter to meet revenue and gross margin targets that had been communicated to the public was described as "immense."
- Key Docs
- Official SEC press release