The Securities and Exchange Fee has submitted civil costs towards SAExploration Holdings, a publicly traded seismic details acquisition enterprise primarily based in Houston, in excess of an alleged multi-calendar year accounting fraud that falsely inflated the company’s income and hid the theft of hundreds of thousands of dollars.
In a complaint submitted in the Southern District of New York, the SEC stated senior executives engaged in an “elaborate, 4-calendar year-very long fraud.” It names former chief govt officer and chairman Jeffrey Hastings, former chief financial officer and common counsel Brent Whiteley, former CEO and chief operating 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 reduction defendants.
The executives allegedly entered into a series of seismic details acquisition contracts totaling roughly $one hundred forty million with a purportedly unrelated Alaska-primarily based enterprise that was in point managed by Hastings and Whiteley. The defendants allegedly misappropriated practically $6 million from SAE and applied the resources for a series of round-vacation transactions then stole roughly $6 million for themselves. Whiteley allegedly misappropriated an additional $4 million via a different fictitious bill plan.
The U.S. Attorney’s Business office for the Southern District of New York introduced criminal costs towards Hastings in a parallel motion.
Hastings was arrested past month in Anchorage, Alaska. A spokesperson for the enterprise stated he was set on administrative depart much more than a calendar year in the past and then resigned.
“As alleged in our complaint, SAE’s executives developed a multi-faceted fraud that enriched executives at the cost of investors,” Jennifer Leete, an associate director in the division of enforcement, stated in a assertion. “We will vigorously pursue wrongdoing by men and women and corporations who have interaction in fraud and mislead investors.”
The SEC is searching for a long lasting injunction towards SAE and executives, civil penalties, disgorgement and office environment-and-director bars towards the executives.