U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 23268 / May 27, 2015

Securities and Exchange Commission v. Gregory Geswein, Kevin Krakora, and Sandra Miller, Civil Action No. 5:10-CV-01235 (N.D. Ohio)

Former Diebold Executives Settle Accounting Fraud Case

The U.S. Securities and Exchange Commission announced today that on May 26, 2015, the Honorable Christopher A. Boyko of the United States District Court for the Northern District of Ohio, entered final consent decrees against Gregory Geswein, the former CFO of Diebold, Inc., Kevin Krakora, the company's former Controller and later CFO, and Sandra Miller, the company's former Director of Corporate Accounting, in a case that the SEC filed on June 2, 2010. Diebold, an Ohio company that manufactures and sells ATMs and bank security systems, and its former CEO, previously settled with the Commission. See Lit. Rel. 21543 (June 2, 2010). The SEC's complaint alleged that from at least 2002 through early 2007, Geswein, Krakora, and Miller engaged in improper accounting practices, including, among other things, the improper use of "bill-and-hold" accounting, to inflate the company's earnings to meet forecasts.

To settle the Commission's claims, without admitting or denying the allegations: Geswein agreed to a final consent decree that orders him to pay disgorgement of $680,000, a civil penalty of $170,000, and prohibits him for three years from acting as an officer or director of a public company; Krakora agreed to a final consent decree that orders him to pay disgorgement of $400,000, a civil penalty of $100,000, prohibits him for three years from acting as an officer or director of a public company, and prohibits him from appearing or practicing before the Commission as an accountant, with a right to apply for reinstatement after three years; and Miller agreed to a final consent decree that permanently enjoins her from aiding and abetting any violation of Section 13(a), Section 13(b)(2)(A), and Section 13(b)(2)(B) of the Exchange Act, and Rules 13a-1, 13a-11, 13a-13, and 12b-20 thereunder, and orders disgorgement of $29,057, which is waived, and no penalty imposed, based on her financial condition.