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?
learn more
Is your AML compliance too expensive, time-consuming, or ineffective?
iComply enables financial services providers to reduce costs, risk, and complexity and improve staff capacity, effectiveness, and customer experience.
Request a demo today.
Trulioo: Get your ICO Ducks in a Row with iComply
We’re honoured that Trulioo asked our CEO Matthew Unger to be featured on this month’s blog! Trulioo Blog: Get your ICO Ducks in a row with iComply By: Bond Lai Unless you’ve been living under a rock, you’ve probably heard the term ICO being tossed around a lot. You...
Why The Crypto Market Has Appreciated More Than 1,200% This Year – Forbes
Matthew Unger shares his thoughts with Forbes about the “hype” of Bitcoin this year in today’s article. Why The Crypto Market Has Appreciated More Than 1,200% This Year – Forbes By: Charles Bovaird The value of the cryptocurrency market has surged this year, rising...
Raising Capital through an ICO (Initial Coin Offering) – Startup Grind
ComplyICO’s regulatory and compliance protocol was featured in yesterday’s post on Startup Grind. Raising Capital through an ICO (Initial Coin Offering) – Startup Grind By: Rich Foreman A friend of mine kept nagging me to buy Bitcoin when it was around $900. Honestly,...
