The Securities and Exchange Commission said that it filed civil charges today against a Canadian man, alleging that he allowed his firm to improperly recognize $2.1 million in revenue.

Scottsdale, Ariz.-based eFunds processes electronic payments including debit card and ATM transactions.

The SEC has charged eFunds Corporation’s former chief financial officer, Paul Bristow, of Halliburton, Ont. and its former executive vice president of the business enterprise group, Nikhil Sinha, of Austin, Texas.

The commission’s complaint alleges that in the second quarter of 2001, eFunds improperly recognized $2.1 million in revenue from a purported penalty payment by an affiliated entity. It alleges that Bristow and Sinha each reviewed and approved the transaction, and that they were reckless in causing eFunds to recognize the $2.1 million as revenue.

Bristow, without admitting or denying the allegations in the complaint, has consented to the entry of a final judgment against him enjoining him from violating securities laws, paying US$53,680 in disgorgement, US$6,999.89 in prejudgment interest and imposes a US$30,000 civil penalty.

Sinha, without admitting or denying the allegations must pay US$58,152 in disgorgement, plus US$6,717.56 in prejudgment interest and a US$25,000 civil penalty.