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SEC settles accounting charges with no monetary penalty

Tammy Whitehouse | January 4, 2019

The Securities and Exchange Commission recently settled charges with an organic foods producer over allegations of accounting and control errors tied to sales incentives.

Most noteworthy about the case, however, is the SEC’s determination to levy no civil penalty, crediting the company with its prompt internal investigation, self-reporting, and significant remedial measures. The SEC issued the typical cease-and-desist order with no other penalty attached.

John Nowak, a partner in the law firm Paul Hastings, along with associate Jeanette Kang, called out the enforcement action, describing it as a “rare departure from typical practice” for the SEC. “...

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