The Securities and Exchange Commission (SEC) has subpoenaed
testimony from current and former Tyco Int’l employees
regarding past accounting practices relating to its ADT
security alarm unit, the Associated Press (AP) reports.
State and federal regulators requested documents related to
Tyco’s management operations, accounting and related
controls, Tyco said in its quarterly regulatory filing with
the SEC.
The subpoenaed testimony relates to dealer-connect fees for
ADT. According to AP, last year, Tyco restated its
financial results to decrease previously reported profits
from 1998 to 2001 by $1.15 billion, while adding $183
million to 2002 earnings. Much of the restatement related
to accounting practices at ADT.
Tyco acquired ADT in 1997 and told AP such practices were
discontinued.
