NEW YORK -- IEC Electronics will pay a $200,000 fine after two former executives of the EMS company improperly overstated corporate profits in financial statements, the US Securities and Exchange Commission said.

The former employees inflated inventory to meet financial targets in fiscal years 2012 and 2013, the SEC asserted.

IEC will pay the fine but is not admitting or denying the charges, the SEC added. IEC revised its financials in 2013 after realizing the problems.

In an 8-K filing, IEC noted the order includes settled charges and sanctions against two individuals who are no longer associated with the company, and said the order fully resolves the SEC’s investigation.

The executives charged include Donald Doody, the company's former executive vice president of operations, and Ronald Years, who was controller of its previously owned Southern California Braiding subsidiary that was the subject of the restatement. The SEC says the employees engaged in "false inventory accounting" to carry out the scheme.

Neither Doody nor Years has admitted or denied the charges. However, Doody is barred from being an officer or director of a public company for five years and has been fined $29,204 in disgorgement and interest, plus a $25,000 penalty, and Years is permanently suspended from appearing and practicing before the SEC as an accountant and has been fined $40,000.

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