قالب وردپرس درنا توس
Home / Business / Former CEO Hertz was charged with assisting and abetting in fraud

Former CEO Hertz was charged with assisting and abetting in fraud



FIRST LINE

On Thursday, former Hertz CEO Mark Frissora was charged with assisting and assisting the company in filing inaccurate financial reports in 2013, the Securities and Exchange Commission father on Thursday.

MAJOR EVENTS

According to the SEC, Frissora in 2013 pressured subordinates to “find money” by re-analyzing reserve accounts when the results are not met, which causes them to change their financial statements.

The agency also accused Frissora of not disclosing correctly to investors that Hertz kept the car for a longer period to cut depreciation costs.

Bloomberg reported earlier this year that Hertz kept the car around for as long as 50,000 miles, was past the industry target of 30,000, and that Frissora wanted to order used cars with the corporate budget of the Dollar brand, the savings and the Firefly. .

Frissora has agreed to reimburse Hertz nearly $ 2 million in motive-based compensation and pay a $ 200,000 fine to settle the allegations without admitting or denying the allegations.

The company itself was charged with the SEC last year over the alleged scheme and agreed to pay $ 16 million to settle the allegations.

Last year, Hertz sued Frissora and two other former executives to reclaim $ 70 million in incentives and quit their jobs.

After leaving Hertz in 2014 under pressure from active investors, Frissora took over as CEO of Caesar’s Entertainment and resigned in 2019.

Hertz did not immediately respond to a request for comment from Forbes.

Main background

Hertz filed for Chapter 11 bankruptcy protection in May, saying that the coronavirus pandemic had undermined their business. A few days after applying, legendary investor Carl Icahn, who owns the majority of Hertz’s shares, sold his entire 39% stake in the company for a loss of $ 2 million. Hertz said it intends to continue in business.


Source link