(HedgeCo.Net) The Securities and Exchange Commission has charged former Hertz CEO and Chairman Mark Frissora with aiding and abetting the company in its filing of inaccurate financial statements and disclosures.\u00a0 Frissora has agreed to settle the charges and repay Hertz nearly $2 million in incentive-based compensation.<\/p>\n\n\n\n
The SEC\u2019s complaint alleges that as Hertz\u2019s financial results fell short of its forecasts throughout 2013, Frissora pressured subordinates to \u201cfind money,\u201d principally by re-analyzing reserve accounts, causing Hertz\u2019s staff to make accounting changes that rendered the company\u2019s financial reports materially inaccurate. According to the complaint, Frissora also led Hertz to hold rental cars in its fleet for longer periods and thus lower its depreciation expenses, without properly disclosing the change \u2013 and the risks of relying on older vehicles \u2013 to investors. In addition, the complaint alleges that Frissora approved Hertz\u2019s reaffirming its earnings guidance in November 2013, despite Hertz\u2019s internal calculations that projected lower earnings per share figures. Hertz revised its financial results in 2014 and restated them in July 2015, reducing its previously reported pretax income by $235 million.<\/p>\n\n\n\n
\u201cInvestors are entitled to accurate and reliable disclosures of material information about a company\u2019s financial condition,\u201d said Marc P. Berger, Director of the SEC\u2019s New York Regional Office. \u201cWe are committed to holding corporate executives accountable when their actions deprive investors of such information.\u201d<\/p>\n\n\n\n
The SEC\u2019s complaint, filed in federal district court in New Jersey, charges Frissora with aiding and abetting Hertz\u2019s reporting and books and records violations and with violating Section 304 of the Sarbanes-Oxley Act by failing to reimburse Hertz for the requisite amount of incentive-based compensation he received. Without admitting or denying the allegations, Frissora consented to a judgment permanently enjoining him from aiding and abetting any future violations of the applicable federal securities laws, requiring him to reimburse Hertz for $1,982,654 in bonus and other incentive-based compensation and requiring him to pay a $200,000 civil penalty. The settlement is subject to court approval.<\/p>\n\n\n\n
In December 2018, Hertz agreed to pay $16 million to settle<\/a> related fraud and other charges brought by the SEC and in December 2019, the SEC issued a settled Order<\/a> against Hertz former Controller Jatindar Kapur. <\/p>\n\n\n\n <\/p>\n","protected":false},"excerpt":{"rendered":" (HedgeCo.Net) The Securities and Exchange Commission has charged former Hertz CEO and Chairman Mark Frissora with aiding and abetting the company in its filing of inaccurate financial statements and disclosures.\u00a0 Frissora has agreed to settle the charges and repay Hertz […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16,3,16048],"tags":[],"class_list":["post-75249","post","type-post","status-publish","format-standard","hentry","category-hedgeco-networks-press-releases","category-hedgeco-news","category-hedgecovest-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/75249","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=75249"}],"version-history":[{"count":1,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/75249\/revisions"}],"predecessor-version":[{"id":75250,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/75249\/revisions\/75250"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=75249"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=75249"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=75249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}