SEC Charges Former Hertz CEO with Filing of Inaccurate Financial Statements
Mark Frissora allegedly pressured his employees to “find money”
What Happened?
August 18, 2020: The Securities and Exchange Commission of the U.S. charged former Hertz CEO Mark Frissora with aiding and abetting the car rental company in filing inaccurate financial statements. According to the SEC, Frissora pressed employees to make changes to the company’s financial reports in 2013.
Frissora is also accused of failing to disclose to investors that the company was keeping cars for longer periods of time to cut down on depreciation costs.
Who Is Impacted?
Frissora has agreed to pay a $200,000 fine to settle the charges with the SEC, and also to repay his former employer $2 million in incentive-based compensation.
Why This Matters?
For all companies, it is important to understand the importance of accuracy in your statements to investors and the public. This SEC enforcement highlights how the regulator is working to maintain checkpoints of accountability within their capital markets.
What’s Next?
Aside from fines, Frissora will be subject to increased scrutiny during Know-Your-Customer (KYC) reviews, as his name will appear in risk-screening results.
Compliance teams can use recent cases like this to test the effectiveness of their compliance systems. Does this name search produce a result in your U.S. screening procedures? If so, how quickly can your compliance workflows identify and present this new risk to your risk management team?
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Brittany Whitmore, PR & Communications
Brittany is the founder of Exvera Communications, which specializes in PR for organizations in the innovation and technology industries. In 2017, Brittany was named to BC Business Magazine’s Top 30 Under 30. Brittany was previously communications lead for Procurify, a...
Piotr Piasecki, Head of Research & Development
Piotr is a leading, world-recognized voice in the blockchain sector as an academic, programmer, advisor, and thought leader. He boasts an extensive programming and software architecture background with a specialty in blockchain and financial technology. Piotr received...
Matthias Kucharska-Huelsmann, Systems Architect
Matthias is an entrepreneurial business strategist with over 10 years of consulting and project management experience and joins iComply as Systems Architect. He has worked with blue chip companies around the world and has a proven track record of successful project...
