General Cable Corporate was fined more than $75M for "...not having effective programs & internal controls necessary to proactively address corruption risks and accounting errors." Terrible considering it would have cost them <$50K to become compliant using the Vibato program and they would have also been able to experience the benefits of compliance such as more efficient procedures, shorter close duration, balanced workloads, etc...The CEO & CFO also had to return a total of $5.8M in combined compensation - that they were entitled to - but that they forfeited simply because they failed to follow the rules and comply with the Sarbanes Oxley laws. Expensive lesson...Read More
Tags: SOX, Sarbanes-Oxley, SEC, SEC fines
Since our Vibato® Internal Control Suite® tools are available in Mandarin and our products have been being sold in China for several years, we are always interested in news surrounding SEC audits there. It is unfortunate to see a US-based auditing firm failing their clients and helping to continue the negative press China companies often receive while trying to comply with SEC standards.
Tags: audit, Securities and Exchange Commission, financial reporting, Compliance in China, SEC, SEC fines, audit deficiency
This is a great article looking at the outcome of a recent SEC investigation into Medifast's financial reporting from 2006 through 2009. Medifast disclosed, without admitting or denying the SEC's findings, that under the terms of the settlement it has consented to a Cease-and-Desist Order and agreed to pay a $200,000 civil penalty.
Tags: Internal Controls, audit, 10k, White Collar Fraud, disclosure, SEC, SEC fines, audit deficiency, Internal Control Deficiency
The SEC claims PACCAR’s internal control procedures were ineffective and kept the company from adhering to various accounting rules.
SEC REPORT: Level Global Agrees to Pay More Than $21.5 Million to Settle SEC Insider Trading Charges
Level Global Investors have agreed to pay more than $21.5 million in fines to the SEC to settle charges that it’s Co-Founder, Anthony Chiasson, engaged in insider trading in the securities of of Dell Inc. and Nvidia Corp. Also charged was former analyst, Spyridon “Sam” Adondakis, five investment professionals, and the hedge fund advisory firm, Diamondback Capital Management.
Tags: Securities and Exchange Commission, Dell Inc., Nvidia Corp., Diamondback Capital Management, SEC, Level Global Investors, Adondakis, Chiasson, SEC fines