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Posts Tagged ‘SEC enforcement’

Securities Enforcement Forum 2019


Several hundred securities enforcement professionals gathered in Washington on Wednesday for the 2019 Securities Enforcement Forum. Radical Compliance couldn’t be there in person, so we gathered a bundle of dispatches from social media to give a flavor of what was discussed. After all, when under SEC investigation, you want the experience to be as enjoyable…

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Graphics Firm Draws $10M FCPA Settlement


A global printing and graphics business based in Wisconsin has agreed to pay $10 million to settle FCPA charges with the Securities and Exchange Commission, in an eye-popping case with misconduct that included bribes to judges, sales to Cuba, and just about every corporate compliance mistake a company could make. The company in question is…

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SEC: Yes, Faking a CFO Is Fraud


Talk about CFOs who are just a lot of hot air: the SEC has filed charges against the former head of a Houston energy business for fabricating the existence of the company’s CFO for at least 18 months, when the firm had no CFO at all.  Tom Simeo, who actually does exist and lives in…

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FCPA Issues Nick Microsoft $25M

Microsoft has agreed to pay $25.3 million to settle FCPA charges against subsidiaries in Hungary, Saudi Arabia, Thailand, and Turkey — the latest in a long line of cases where poor procedures to document sales discounts offered by local resellers paved the way for bribery of foreign government officials.  Microsoft will pay $16.5 million to…

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Conn’s Lesson on Management Estimates

Oh, look. Another accounting enforcement action from the SEC, where poorly designed internal controls led to management’s abuse of estimates. Everyone put on your shocked face.  The SEC settled a case on Monday with Conn’s, a rent-to-own retailer based in Texas with $1.55 billion in annual sales. Conn’s agreed to pay $1.1 million in a…

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SEC Offers Path to Ease Misconduct Burdens


Never get involved in a land war in Asia, and never ignore a regulator’s policy announcement dropped just before a long holiday weekend. SEC chairman Jay Clayton yet again proved how true that maxim is, with a statement on Wednesday opening the door to easier treatment of companies that violate securities laws. Clayton said that…

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Botched ICO: Self-Reporting Wins Again


Another week, another message that self-disclosure of corporate misconduct brings rewards. This time, the SEC let a tech company off with a regulatory wrist-slap after the firm confessed to conducting an unregistered initial coin offering. ICOs are all the rage these days among certain technology companies, whose founders probably read too much Ayn Rand in…

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The Many Lessons of Elon Musk


Corporate executives can learn a lot from the daring and vision of Elon Musk — just probably not in the way that Musk might prefer. His tenure at Tesla lately has become a living case study in how not to govern a large organization. That’s been the fundamental problem with Musk for quite some time:…

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Automation & Control Lessons in Latest SEC Enforcement


We have an interesting enforcement action from the Securities and Exchange Commission this week, where the agency dinged a telecom company and its former executives $1.9 million for misleading statements on revenue projections. The kicker: it looks like the company’s own sales automation software created the audit trail that painted the company into an enforcement…

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Fyre Festival Fraudster Flayed by SEC


Not really related to corporate ethics and compliance, but too good to ignore: the SEC just charged the three knuckleheads responsible for the Fyre Festival Fiasco of 2017 with bamboozling their investors out of $24.7 million. If you are fortunate enough to have forgotten about the Fyre Festival, let me recap. In 2016, wannabe New…

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