One more in the Allscripts file as the company has had their issues. I wonder if this guy had any part in the reporting to shareholders where they lied about their code being done with integrating another software product they purchased a couple years back that cost the CEO his job? A couple years ago people were not looking at computer code but now they do. It’s either done and ready to go or not and you don’t project sales on work and code that is not ready to rock and roll as a lot can happen in the development process to cause delays, etc.
Allscripts CFO Resigns Along With A Few Other Key Individuals, Board Fires Chairman–1st Quarter Had Lower Sales And Net Earnings Down–Long Haul to Get Software Technologies Merged So They Work
So here we have someone in what you might call the “bean counter” side of the business who’s oblivious to what occurs on the tech side, but knows enough to figure out things are going down it appears. He sold 1000 shares of stock in the weeks prior to the earnings release and I think all remember that call. After the profits were made on the sale he closed his positions and had been using his wife’s account. This is not the first time as a couple years ago we had the big issue at the FDA with trading on insider information with using family accounts. Looks like the SEC is starting to take a serious look at auditors all over, which is a good thing as books can be cooked just like code can be cooked to hide risk. BD
A certified public accountant and former director of corporate audit for Chicago-based Allscripts Healthcare Solutions has been indicted on insider trading charges.
Federal prosecutors charged Steven M. Dombrowski with 16 counts of securities fraud in an indictment announced Wednesday. They allege the trades resulted in a $286,000 profit.
Each count of securities fraud carries a maximum penalty of 20 years in prison and a $5 million fine.
Dombrowski and the employees he supervised were responsible for auditing and testing the processes and procedures Allscripts used to compute and report its financial performance. Allscripts makes electronics for the healthcare industry.