Data General Corp co-founder Henry Burkhardt III is barred from acting as an officer or director of any public company for 10 years and will pay penalties totaling $1.1m to settle charges from the US Securities & Exchange Commission of fraud while he was running Kendall Square Research Corp. The Comission charged Burkhardt, president and chief executive of Kendall Square, its excutive vice-president Peter Appleton Jones and principal financial officer Karl Wassmann III with issuing materially false and misleading financial statements for fiscal 1992 and the first half of 1993. The company was alleged at the time to have recognized revenue from installations long before it was even clear whether the customer would ever accept the parallel processor, and the charge is that, knowing this, the defendants sold shares at artificially inflated prices. Burkhardt and Wassmann both agreed to settle without admitting or denying the allegations. Wassman is also barred from practicing as an accountant.
