Upscale sportswear and outerwear maker Cutter & Buck Inc on Thursday escaped a fine or penalty in the wake of a Securities and Exchange Commission (SEC) probe into allegations two former executives inflated sales results.

The Seattle-based company's former CFO, Stephen Lowber, pleaded guilty to an accessory to wire fraud and now faces up to two and a half years in prison and a $125,000 fine.

In separate SEC charges related to allegations the firm's fiscal 2000 sales results were overstated by $5.7 million, Lowber agreed to a $50,000 civil fine and an anti-fraud injunction, without admitting or denying the findings.

Ex-regional sales vice president, David Hilton, agreed to a $25,000 civil fine to settle SEC charges, without admitting or denying the findings.

In June, the company announced it expected to reach agreement with the SEC to settle the investigation having reached an agreement with plaintiffs to settle the shareholder lawsuits relating to the restatement of financial results for fiscal years 2000 and 2001.

Yesterday's agreement provides for Cutter & Buck to comply with the financial reporting, maintenance of books and records and internal control provisions of the federal securities laws.

"We self-reported this matter to the SEC in 2002, as soon as we discovered the problem," said CEO Fran Conley. "We know that the company's prompt action and cooperation with the SEC has been a significant factor in bringing this matter to a close."

"Today's settlement with the SEC and the previously announced settlement of the shareholder lawsuits brings to conclusion the two most significant challenges that faced the company as a consequence of our earnings restatements."