MedQuist Settles with Securities and Exchange Commission

The settlement has to do with billing, as MedQuist is a service providing dictation services. The COO has also been barred for being an officer of a public company for the next 5 years as well. BD

The complaint alleged that from 1999 to 2004, MedQuist claimed in SEC filings and other communications that its strong financial performance resulted from its "disciplined and conservative billing practices, while at the same time it was systematically and secretly inflating customer bills to increase revenues and profit margins," according to the SEC.

Without admitting or denying the allegations, MedQuist has agreed to permanently cease practices that violated the antifraud, reporting, books and records, and internal control provisions of federal securities laws. The SEC also has settled a civil action against John Donohoe, former president, COO and director at MedQuist. Donohoe agreed to permanently cease barred practices and pay a $75,000 fine. He will be barred from serving as an officer or director of a public company for five years. Both settlements are subject to approval of the U.S. District Court for the Southern District of New York.