June 23, 2024


The business lovers

SAExploration Accused of Accounting Fraud

The Securities and Exchange Fee has filed civil fees versus SAExploration Holdings, a publicly traded seismic knowledge acquisition enterprise primarily based in Houston, about an alleged multi-yr accounting fraud that falsely inflated the company’s revenue and concealed the theft of tens of millions of pounds.

In a criticism filed in the Southern District of New York, the SEC mentioned senior executives engaged in an “elaborate, 4-yr-long fraud.” It names previous main executive officer and chairman Jeffrey Hastings, previous main fiscal officer and normal counsel Brent Whiteley, previous CEO and main functioning officer Brian Beatty, and previous 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 collection of seismic knowledge acquisition contracts totaling about $one hundred forty million with a purportedly unrelated Alaska-primarily based enterprise that was in fact controlled by Hastings and Whiteley. The defendants allegedly misappropriated almost $six million from SAE and applied the funds for a collection of round-vacation transactions then stole about $six million for themselves. Whiteley allegedly misappropriated an more $4 million through a different fictitious invoice scheme.

The U.S. Attorney’s Business office for the Southern District of New York announced prison fees versus Hastings in a parallel motion.

Hastings was arrested very last thirty day period in Anchorage, Alaska. A spokesperson for the enterprise mentioned he was place on administrative go away additional than a yr ago and then resigned.

“As alleged in our criticism, SAE’s executives intended a multi-faceted fraud that enriched executives at the cost of investors,” Jennifer Leete, an associate director in the division of enforcement, mentioned in a statement. “We will vigorously pursue wrongdoing by folks and firms who interact in fraud and mislead investors.”

The SEC is seeking a lasting injunction versus SAE and executives, civil penalties, disgorgement and workplace-and-director bars versus the executives.

accounting fraudSAExploration Holdings, The Securities and Exchange Fee