SEC investigating Home Depot

The New York Post reports that the SEC has opened an investigation of charges that Home Depot inflated vendor chargebacks for shipping damages. The investigation is based on charges by an employee who claims he was fired for complaining about it. The Post describes Depot's practice as follows:

For instance, Philips Lighting Company, a unit of Royal Philips Electronics, provided the Home Depot store in Aspen Hill, Md., with a $1,000 monthly credit to cover the cost of damaged light bulbs, according to Davis.

As long as the amount didn't exceed $1,000, Philips would accept the charge, no questions asked.

Davis said he was told by his superiors to charge Philips slightly less than the $1,000 ceiling each month, even if the actual damages totaled less than that amount.

As the Post notes: "The SEC investigation and legal action at Home Depot mirror similar complaints against other retailers, notably Saks Inc. and Federated Department Stores, which are accused of overcharging suppliers in a variety of ways."

Home Depot denies the charges.