The commission charged that the company ‘improperly’ accounted for revenues and incorrectly recorded products returns between the period February 2007 and June 2008.
The filing with the US District Court, Western District of Washington, Tacoma, alleged that the company overstated revenues over the course of six successive quarters.
Unsold products accounted for revenues
As a result, it was estimated that ICTV overstated its revenues by an estimated $3.7m and its net income by $3.9m during the full financial year 2007 and the first half of 2008.
Following on from the court action, the SEC announced that it had come to a settlement over the civil charges on Monday, stating that it would not penalize or fine ICTV over the allegations.
Although ICTV did not admit to any wrong-doing, it has agreed to an injunction against any other future violations of securities laws and it has already restated its financial results for the six quarters in question, back in October 2008.
Charges still pending for former account chief
Charges against ICTV’s former chief financial officer, Karl Redekopp, are still pending, and several press reports have stated that he is now living in Canada.
Established in 1982, the company sells health care and beauty products through distribution channels set up in 35 countries.
Its lead brand is the Derma Wand – a laser device targeting the reduction of wrinkles, but the company also retails and markets a line of skin care products under the Derma Vital brand name, which is also focused on the anti-aging category.