The McLean, Virginia-based company is taking the charge to cover a reduction in office space, according to a filing to the Securities and Exchange Commission (SEC). BearingPoint also said it might be unable to meet financial accounting standards under the Sarbanes-Oxley Act that require companies to certify that they have adequate accounting controls in place to prevent fraud.
To add to its woes, BearingPoint said it received a subpoena from the SEC and a request for documents from the US attorney’s office, which is pursuing a case against executives of asset management software vendor Peregrine Systems Inc.
Peregrine overstated its revenue by $509 million from 1999 to 2001, according to the SEC. BearingPoint, formerly known as KPMG Consulting, was a reseller of Peregrine’s software during that time. It is alleged that Peregrine boosted sales by recording revenue with reseller partners, without actually collecting the bills.
BearingPoint is still looking to appoint a new CFO following the departure of Bob Falcone in November. The company is aiming to steady its financial position by issuing a new $350 million convertible debt offering to replace an existing credit facility and repay existing debt. It is also considering the sale of various operations.
