Cucuz was found liable of violating the anti-fraud provisions of securities law, while Shovers was found liable of six counts of securities fraud and other violations of securities law, said Robert Kaplan, an assistant director of enforcement at the SEC. The SEC said the pair was aware of the efforts of other former executives to manipulate the company's results to meet internal corporate earnings targets. Attorneys for both men couldn't be reached late Wednesday. Cucuz said in a court filing earlier this year he was innocent 'and acted totally in good faith at all times' and that 'he never sold any of his stock in Hayes during the period in question.' Shovers said he acted in good faith, saying the conduct at issue 'was done in whole or in part by others over whom Shovers had no control.' Both defendants in May said the SEC's case was 'a large dose of wishful hindsight.' Shovers stepped down as chief financial officer at Standard Microsystems Corp. after the learning the SEC was preparing to file a civil complaint. The SEC said the jury verdict sent a message to executives. 'This outcome demonstrates that senior executives who learn that their company is cooking the books cannot just cover it up or hide their heads in the sand. They must come clean or face liability,' said David J.Gottesman, the SEC's assistant chief litigation counsel. An internal investigation by the law firm Skadden, Arps, Slate, Meagher & Flom LLP and accounting firm Ernst & Young found that plant managers and controllers at Hayes Lemmerz 'concocted and encouraged' the fraud. One witness, Michael Pozsar, took notes of a June 18, 2001 meeting of the North American Aluminum Wheels Group, or NAAWG, writing Shovers: 'informed the group that the 'accounting' (in) the NAAWG was bad in 2000 and must improve dramatically. It has never been as bad as it is today -- must stop now!!! -- They're committing fraud.' Previously, two former executives and the company agreed to settle SEC claims in 2006, with former Hayes executive and NAAWG president Ronald Kolakowski, agreeing to pay a $75,000 penalty and be barred from serving as a director or officer in a publicly traded company for 10 years. U.S. District Judge Arthur Tarnow will decide what if any financial penalties to assess against Cucuz and Shovers and whether to bar the pair from serving as directors or officers in publicly traded companies, as the SEC has sought. Hayes Lemmerz is a global supplier of automotive and commercial highway wheels, with 23 facilities and over 7,000 employees worldwide. You can reach David Shepardson at (202) 662 - 8735 or [email protected].