Sallie Mae Fires Debt Collection Unit CFO Over Accounting

Published on:
12 September 2006 at 10:19 a.m. ET

Written by: Unknown Author –

http://www.insidearm.com/news/00010622-sallie-mae-fires-debt-collection-unit-cfo/

By Jonathan Stempel, Reuters

SLM Corp., the largest U.S. provider of student loans, on Monday said it had fired its chief financial officer and demoted another manager in a debt collection agency unit for inflating revenue in a bid to achieve performance goals and collect higher bonuses.

The company, better known as Sallie Mae, also said the U.S. Securities and Exchange Commission had decided not to take enforcement action against it or the managers over the accounting errors, which took place in 2003. The SEC had opened an informal probe in January 2004.

Sallie Mae, based in Reston, Virginia, said it took action following an internal review. Spokesman Thomas Joyce declined to identify the unit or the managers, or when the firing and demotion took place. “we’re pleased to put the matter behind us,” he said.

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Sallie Mae Fires Debt Collection Unit CFO Over Accounting

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