5 September 2002
“Chainsaw” Al Dunlap, former chief executive of Sunbeam Corp, now 65, has agreed to pay a $US500,000 fine and agreed never to serve as an officer or director of a public company again. He also paid $US15 million to settle a shareholder claim, but neither admitted nor denied Securities & Exchange Commission charges that he engineered an accounting fraud to inflate Sunbeam’s profits after it hired him in 1996 to turn the company round. Sunbeam reported that turnaround in 1997, but later restated its results and filed for bankruptcy. The SEC said Mr Dunlap & Sunbeam’s chief financial officer used various techniques to overstate 1996 losses that could be blamed on past management, and overstate 1997/98 profits.