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NEW YORK, Dec 5 (Reuters) – Iconix Model Group Inc ICON.O founder and former Chief Govt Officer Neil Cole has been charged with accounting fraud, whereas the previous chief working officer has pleaded responsible to associated expenses and is cooperating with authorities, federal prosecutors introduced Thursday.
The previous executives inflated the attire licensing firm’s income by convincing a Hong Kong-based firm to overpay for stakes in joint ventures with Iconix, in response to an indictment unsealed in federal courtroom in Manhattan.
The Hong Kong firm, which was not named, agreed to the overpayments on the situation that it might be reimbursed via sham consulting or advertising charges, in response to the indictment.
By way of the scheme, Iconix’s income was inflated by a complete of about $13 million over three separate three way partnership agreements in 2013 and 2014, the indictment stated.
The corporate’s shares tumbled 11% in…