US SEC may file civil fraud charges against Satyam

Washington, Oct 3(ANI): The US Securities and Exchange Commission (SEC) is reportedly close to filing civil fraud charges against Indian software maker Satyam Computer Services in connection with a billion dollar accounting scheme.

According to the Wall Street Journal, Satyam disclosed in a regulatory filing that it had received a "Wells notice", an indication from the SEC that it is prepared to file a lawsuit.

In the filing, Satyam said that the SEC is planning to file fraud charges and seek monetary relief in connection with the company's accounting prior to 2009.

The company also disclosed that the SEC and Indian agencies are probing potential "round tripping" before April 2002.

Round tripping is an accounting gimmick which companies use to bolster revenues. In a round trip deal, the company agrees to sell an asset to another company while agreeing to buy a similar product at around the same price.

Earlier, in January 2009, Satyam Computer Services founder and Chairman B. Ramalinga Raju resigned after publicly announcing his involvement in the massive accounting fraud.

Raju is currently in a Hyderabad prison along with his brother and former board member Rama Raju, and the former CFO Vadlamani Srinivas. (ANI)