SAExploration Accused of Accounting Fraud

The Securities and Exchange Fee has submitted civil costs from SAExploration Holdings, a publicly traded

The Securities and Exchange Fee has submitted civil costs from SAExploration Holdings, a publicly traded seismic facts acquisition corporation centered in Houston, more than an alleged multi-yr accounting fraud that falsely inflated the company’s revenue and hid the theft of millions of pounds.

In a criticism submitted in the Southern District of New York, the SEC said senior executives engaged in an “elaborate, 4-yr-long fraud.” It names former chief govt officer and chairman Jeffrey Hastings, former chief financial officer and standard counsel Brent Whiteley, former CEO and chief running officer Brian Beatty, and former vice president of operations Michael Scott as defendants. It also names the spouses of Hastings and Whiteley, Lori Hastings and Thomas O’Neill, as relief defendants.

The executives allegedly entered into a collection of seismic facts acquisition contracts totaling about $one hundred forty million with a purportedly unrelated Alaska-centered corporation that was in fact managed by Hastings and Whiteley. The defendants allegedly misappropriated practically $six million from SAE and utilised the funds for a collection of spherical-trip transactions then stole about $six million for themselves. Whiteley allegedly misappropriated an additional $4 million by means of a individual fictitious bill plan.

The U.S. Attorney’s Business for the Southern District of New York introduced felony costs from Hastings in a parallel motion.

Hastings was arrested past month in Anchorage, Alaska. A spokesperson for the corporation said he was set on administrative go away a lot more than a yr in the past and then resigned.

“As alleged in our criticism, SAE’s executives made a multi-faceted fraud that enriched executives at the expenditure of traders,” Jennifer Leete, an affiliate director in the division of enforcement, said in a statement. “We will vigorously go after wrongdoing by men and women and organizations who interact in fraud and mislead traders.”

The SEC is seeking a long-lasting injunction from SAE and executives, civil penalties, disgorgement and office-and-director bars from the executives.

accounting fraudSAExploration Holdings, The Securities and Exchange Fee