Syracuse-based Penn Traffic operates or is the supplier to more than 200 supermarkets in New York state, Pennsylvania, New Hampshire and Vermont

Syracuse-based Penn Traffic operates or is the supplier to more than 200 supermarkets in New York state, Pennsylvania, New Hampshire and Vermont, including 1Quality Market outlets in Western New York.The SEC alleged that Penn Traffic carried out the accounting fraud over multiple reporting periods, and failed to file certain required financial reports with the SEC or filed reports that did not fully comply with SEC regulations.According to the federal agency, Penn Traffic agreed to settle the SEC’s charges without admitting or denying the allegations. The SEC imposed no fines or monetary penalties against the company.Penn Traffic intentionally inflated its operating income and other financial statements by approximately $10 million by prematurely recognizing promotional allowances in a scheme that lasted for nearly three years, from fiscal year 2001 through at least the fourth quarter of the 2003 reporting period.Another complaint alleges a separate scheme from at least the first quarter of 2000 through the first quarter of 2003 involving Penny Curtiss, Penn Traffic’s wholly-owned bakery manufacturing subsidiary that has since closed.