Judge Sandra Feuerstein
Mortenson worked at Symbol Technologies from 1997 to 2003. He and his codefendants engaged in pervasive fraud, inflating Symbol’s reported sales revenue and income. He also allegedly took steps to conceal the fraud and interfere with internal and governmental investigations. On Feb. 11, 2008, a partial consent judgment was entered against Mortenson in the SEC’s June 3, 2004, action charging him with securities fraud and aiding and abetting Symbol’s violations of securities laws. Alleging that Mortenson profited from the fraud by receiving performance bonuses, the SEC sought disgorgement of $42,461 plus $38,959 in prejudgment interest. The court found the SEC entitled to $31,176 disgorgement and $28,043 in prejudgment interest. Mortenson was also required to pay a $15,588 "third-tier" civil penalty. The SEC showed that only $29,445 representing "Management by Objective" bonuses for 2000 and 2001 were based on the way Symbol recognized sales revenue, rather than based on real sales to end users. The court previously found Symbol’s stock price inflated by $17.31 due to the fraud. Because he sold 100 shares of stock on March 15, 2001, during the fraud period, Mortenson must disgorge $1,731 in ill-gotten gains.
