Krispy Kreme Gets Warning, Don't Cheat Again!

Krispy Kreme Doughnuts Inc. said Wednesday that it has agreed to a Securities and Exchange Commission cease-and-desist order to resolve an investigation that found the company misrepresented earnings between the fourth quarter of fiscal 2003 through the fourth quarter of 2004.

Krispy Kreme improperly accounted for its incentive compensation plan for senior executive officers and for three transactions related to the acquisition of company franchises in order to manipulate its earnings reports, the SEC said.

Krispy Kreme was ordered to cease and desist from committing or causing violations and future violations of securities laws related to filing accurate earnings reports with the SEC, maintaining accurate books, records and accounts in reasonable detail and maintaining a sufficient system of internal accounting controls.

In a statement, Winston-Salem, N.C.-based Krispy Kreme said it did not admit or deny any findings. - AP

Bad boy, Krispy Kreme for cheating on your financial statements. Now that you've promised that you wouldn't think of doing such a thing again, the SEC will let bygones be bygones.