Barrington man accused of accounting fraud

The Securities and Exchange Commission on Wednesday charged a Barrington man with committing accounting fraud while he was the CEO of a Milwaukee-based health care firm.

The SEC claims that between 2002 and 2005, Richard Linden, as CEO of Merge Healthcare, overstated the revenue the firm received from its clients.

The company provides medical imaging software, hardware and services to its clients, according to the SEC.

The SEC alleges that Merge Healthcare's disclosure of the fraud led the firm's stock price to sink from $24.50 to $7.30 per share during a six-month period in 2006 - a $500 million loss in market capitalization, a measure of a publicly traded company's worth.

The SEC also charged Merge Healthcare's former chief financial officer, Scott Veech of Whitefish Bay, Wis., and the firm itself in the accounting fraud.

All three parties - Linden, Veech and Merge - agreed to settle the claim without admitting guilt, according to the SEC. Under the settlement, Linden and Veech cannot serve as officers or directors at a public company for five years. Linden agreed to pay $590,00 in fines and fees, while Veech will pay $280,000.