SEC Fines Fluor Corporation and Five Former Officers $14.5 Million for Improper Accounting Practices

The U.S. Securities and Exchange Commission has announced that Fluor Corporation, a global engineering, procurement, and construction company based in Irving, Texas, will pay $14.5 million to settle charges stemming from improper accounting on two large-scale projects. Five former and current officers and employees also agreed to settle related charges for causing Fluor’s violations. According to the SEC's order, Fluor failed to include all anticipated costs in each project's forecasts and delayed loss recognition on one of the projects. Moreover, the company improperly incorporated revenue from unapproved change orders into the forecasts of one of the projects. As a result of these violations, the company overstated its net earnings by as much as 37 percent from 2016 to 2019 and 22 percent in 2018. In total, Fluor will pay a civil money penalty of $14.5 million and the five former and current employees involved in the violations have agreed to pay penalties ranging from $15,000 to $25,000.