Pinnacle Micro Settles SEC Allegations

Pinnacle Micro Inc. and three former executives settled regulator allegations that they overstated the company’s financial results to meet sales targets. The Securities and Exchange Commission had accused the Irvine-based optical disk drive manufacturer of reporting inaccurate revenues in September 1993, December 1993 and September 1995. James G. Hanley, former vice president of operations, agreed to pay a $25,000 civil fine. Hanley, the company and the other two former executives agreed to stronger penalties if they violate similar regulations in the future. Under the settlement, the company and former executives neither admitted to nor denied the allegations. The SEC suit, filed in federal court in Washington, also named Scott A. Blum, co-founder of the company and a former executive vice president, and Lilia Craig, former vice president of finance. The company also said president Kenneth C. Campbell resigned to pursue other interests. William F. Blum, chairman and chief executive, also assumed the role of president. Shares were unchanged at 88 cents on Nasdaq.