SEC Bars Corporate VP and Controller for False Accounting
The Securities and Exchange Commission today announced that it has barred a former corporate vice president and suspended a former controller behind false accounting at a New York-based electronics company. An SEC investigation found that IEC Electronics Corp. improperly overstated the company’s profits in financial statements by using false inventory accounting as orchestrated by IEC’s then-executive vice president of operations Donald Doody and the controller of one of IEC’s subsidiaries at the time, Ronald Years. When the subsidiary wasn’t performing well financially, Doody and Years inappropriately inflated the work-in-process inventory in order to meet budgeted gross profit margins. …
Read MoreSEC Announces Two Non-Prosecution Agreements in FCPA Cases
The Securities and Exchange Commission today announced non-prosecution agreements (NPAs) with two unrelated companies that will forfeit ill-gotten gains connected to bribes paid to Chinese officials by foreign subsidiaries. Massachusetts-based internet services provider Akamai Technologies has agreed to pay $652,452 in disgorgement plus $19,433 in interest. According to the NPA, Akamai’s foreign subsidiary arranged $40,000 in payments to induce government-owned entities to purchase more services than they actually needed. Employees at the foreign subsidiary violated the company’s written policies by providing improper gift cards, meals, and entertainment to officials at these state-owned entities to build business relationships. Rhode…
Read MoreChildhood Friends Charged With Insider Trading in Pharmaceutical Stocks
The Securities and Exchange Commission today charged two Rhode Island men with insider trading in the securities of deal targets being pursued by the pharmaceutical company where one of them worked. The SEC alleges that Michael J. Maciocio obtained confidential clinical and business data about other pharmaceutical firms being considered by his company for potential acquisitions and business relationships, and he used the nonpublic information to trade in their stocks. Maciocio made approximately $116,000 in illegal profits trading in such pharmaceutical companies as Medivation Inc., Ardea Biosciences, and Furiex Pharmaceuticals. The SEC further alleges that Maciocio illegally tipped…
Read MoreStephen L. Cohen, Associate Director of Enforcement, to Leave SEC After Nearly 12 Years of Service
The Securities and Exchange Commission today announced that Stephen L. Cohen, Associate Director of the SEC’s Enforcement Division, is planning to leave the agency later this month. Since he was appointed Associate Director in 2011, Mr. Cohen has overseen a staff of nearly 60 attorneys and other professionals responsible for investigating potential violations of the federal securities laws by a wide range of market participants. Mr. Cohen has worked closely with and provided assistance to numerous international regulators and domestic law enforcement partners. In addition, Mr. Cohen has played a leading role in SEC programs, including the launch of…
Read MoreSEC: Forex Trader Misrepresented Track Record and Hid Massive Losses
The Securities and Exchange Commission today charged a New York City-based trader with defrauding investors out of millions of dollars by misrepresenting her investment track record, the profitability of her investments, and her use of investor funds. The SEC alleges that Haena Park touted her supposedly profitable futures and foreign currency (forex) trading strategy when soliciting friends, family, former Harvard classmates, and individuals with connections to them. She proceeded to pool investor funds and incur heavy trading losses month after month in the futures and forex markets, yet repeatedly told investors that their investments were profitable and sent them…
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