• United States



by Paul Kerstein

No Financial Security at Krispy Kreme

Aug 11, 20051 min
CSO and CISOData and Information Security

Two Krispy Kreme executives, Scott Livengood and John Tate, are underinvestigation for failing to establish financial controls that led toerrors and possible fraud. A Financial Times article on MSNBC.comreports that Livengood and Tate failed to establish management tone,environment and security controls essential for meeting Krispy Kreme’sresponsibilities as a public company. The SEC also launched a formalinvestigation last summer because of investor concerns over accountingof its franchise operations. The company is also under criminal investigation bythe U.S. Attorney’s office for the southern district of New York, andthere is a potential class action lawsuit over the employee pensionfund. Read more.