The Securities and Exchange Fee has filed civil rates in opposition to SAExploration Holdings, a publicly traded seismic facts acquisition organization dependent in Houston, around an alleged multi-yr accounting fraud that falsely inflated the company’s profits and concealed the theft of thousands and thousands of dollars.
In a criticism filed in the Southern District of New York, the SEC stated senior executives engaged in an “elaborate, four-yr-prolonged fraud.” It names previous main govt officer and chairman Jeffrey Hastings, previous main economical officer and basic counsel Brent Whiteley, previous CEO and main running officer Brian Beatty, and previous vice president of functions Michael Scott as defendants. It also names the spouses of Hastings and Whiteley, Lori Hastings and Thomas O’Neill, as reduction defendants.
The executives allegedly entered into a collection of seismic facts acquisition contracts totaling roughly $140 million with a purportedly unrelated Alaska-dependent organization that was in simple fact controlled by Hastings and Whiteley. The defendants allegedly misappropriated just about $6 million from SAE and used the funds for a collection of spherical-journey transactions then stole roughly $6 million for themselves. Whiteley allegedly misappropriated an additional $four million via a independent fictitious invoice plan.
The U.S. Attorney’s Business for the Southern District of New York announced criminal rates in opposition to Hastings in a parallel motion.
Hastings was arrested last thirty day period in Anchorage, Alaska. A spokesperson for the organization stated he was put on administrative leave additional than a yr back and then resigned.
“As alleged in our criticism, SAE’s executives built a multi-faceted fraud that enriched executives at the price of traders,” Jennifer Leete, an associate director in the division of enforcement, stated in a assertion. “We will vigorously pursue wrongdoing by people today and businesses who interact in fraud and mislead traders.”
The SEC is looking for a lasting injunction in opposition to SAE and executives, civil penalties, disgorgement and place of work-and-director bars in opposition to the executives.