Litigation Releases (Nicholas Bowerman)

U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26116 / September 20, 2024

Securities and Exchange Commission v. Nicholas Bowerman

, No. 1:24-cv-12282 (D. Ma. filed September 5, 2024)

SEC Charges Former Finance Director at CIRCOR International with Accounting Fraud

On September 5, 2024, the Securities and Exchange Commission announced fraud charges against Nicholas Bowerman, a former finance director of CIRCOR International Inc., a formerly publicly traded technology manufacturer. The SEC alleges that Bowerman's fraud led to the company making misleading statements to the public about the company's financial performance from 2019 through 2021.

Bowerman worked at CIRCOR's U.K.-based business unit, Pipeline Engineering. According to the SEC's complaint against Bowerman, between 2019 and 2021, Bowerman manipulated CIRCOR's internal accounting records by falsifying Pipeline Engineering's financial results before they were included in CIRCOR's consolidated financial statements. The complaint further alleges that Bowerman concealed his misconduct by manipulating account reconciliations, falsifying certifications, fabricating bank confirmation documents, and misleading CIRCOR's management and independent auditors. As a result of Bowerman's conduct, CIRCOR overstated by millions of dollars its performance for fiscal years 2019 and 2020 and the nine months ending October 3, 2021.

The SEC's complaint, filed in the U.S. District Court for the District of Massachusetts, charges Bowerman with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder, and the books and records provisions of Section 13(b)(5) of the Exchange Act and Rule 13b2-1 thereunder. The complaint also charges Bowerman with aiding and abetting CIRCOR's violations of the financial reporting, books and records, and internal accounting controls provisions of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 13a-1, 13a-11, and 13a-13 thereunder. The complaint seeks injunctive relief, disgorgement with prejudgment interest, and civil penalties.

The SEC's investigation was conducted by Christine R. O'Neil, Samika N. Osbourne, and Brian R. Higgins, and supervised by Brendan P. McGlynn, all of the Philadelphia Regional Office. The SEC's litigation against Bowerman will be conducted by Judson T. Mihok and supervised by Gregory R. Bockin, also of the Philadelphia Regional Office.