Two former executives of SeraCare Life Sciences have settled a civil fraud lawsuit with the U.S. Securities and Exchange Commission related to an accounting scandal at the company three years ago.

Former Chief Executive Michael Crowley Jr. and former board member Jerry Burdick each agreed to pay $25,000 in penalties and were prohibited from violating anti-fraud financial reporting provisions of securities law. Both reached the agreement without admitting wrongdoing.

The SEC had filed the civil fraud lawsuit against the two men in connection with an accounting scandal that led to SeraCare, formerly based in Oceanside, filing for Chapter 11 bankruptcy in March 2006.

The SEC alleged that Crowley, 40, of San Diego learned the day before the company released financial results for the first quarter of 2005 that a major customer had canceled an order, which represented nearly 11 percent of the company's net income. Crowley did not reveal that information to investors, the SEC said.

Burdick, 68, of Westlake Village was accused of manipulating the value of inventory and reserves. The SEC alleged that his actions boosted income 20 percent in the second quarter of 2005 and 17 percent in the third quarter of 2005.

Burdick was also accused of back-dating a letter to the company's auditors justifying the inventory moves, the SEC said.

SeraCare, which employed 230 workers at one time, makes biological supplies for diagnostic tests and drug discovery. Its stock peaked at $23.17 in December 2005.

But a few weeks later, the company's new auditors raised concerns about its accounting practices and its valuation of inventory. Auditors also raised concerns about some board members exerting undue influence over financial reporting.

After an internal review, the company fired Crowley and a handful of other executives. It exited bankruptcy in May 2007 and moved its headquarters to Milford, Mass. The company's stock ended yesterday at $4.74.