Krispy Kreme Gets Warning, Don't Do That Again!

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

Bad boy, Krispy Kreme for cheating on your financial statements. Now promise won't do that again and the SEC will let bygones be bygones.