- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Aaron Nicodemus2023-02-15T16:56:00
An Illinois-based shipping and logistics company accused of engaging in a multiyear accounting fraud scheme avoided further penalties after the Securities and Exchange Commission (SEC) deemed a $20 million class-action settlement agreed to in 2019 returned any ill-gotten gains.
Roadrunner Transportation Systems overstated its income by $66 million from 2011-16 and had to re-evaluate $373.7 million worth of noncash impairment charges as a result of the scheme, the SEC said Tuesday in an administrative proceeding.
Roadrunner did not admit or deny the SEC’s findings but agreed to cease and desist from future violations and pay disgorgement of approximately $7.1 million and prejudgment interest of more than $2.5 million. Those payments were deemed satisfied by a settlement Roadrunner agreed to in U.S. District Court for the Eastern District of Wisconsin in 2019. Approximately $16.4 million of that settlement amount was distributed to shareholders, the SEC’s order said.
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China-based technology company Cloopen Group Holding won’t pay a fine in settling with the Securities and Exchange Commission over an alleged accounting fraud scheme perpetrated by two of its former senior managers.
Future FinTech Group agreed to pay $1.65 million to settle charges levied by the Securities and Exchange Commission for filing materially inaccurate annual reports and failing to maintain adequate books, records, and internal control over financial reporting.
Electronic payments software company Cantaloupe agreed to pay a $1.5 million penalty to settle allegations of accounting fraud levied by the Securities and Exchange Commission arising from improper revenue recognition practices.
Purported “testimonial and review” service Rytr agreed to stop selling its program that used artificial intelligence to create fake content as part of a consent order with the Federal Trade Commission.
Bank of America avoided a monetary penalty in agreeing to settle charges with the Treasury Department’s Office of the Comptroller of the Currency but was ordered to shore up previously disclosed deficiencies in its Bank Secrecy Act/anti-money laundering (BSA/AML) and sanctions compliance programs.
Aviation maintenance services provider AAR Corp. will pay nearly $56 million to settle charges that it violated the Foreign Corrupt Practices Act when it paid bribes to government officials in Nepal and South Africa.
