The SEC has asked a federal court in Arizona to order the former CEO of CSK Auto Corporation to reimburse the company and its shareholders more than $4 million. The SEC alleges that the CEO, Maynard L. Jenkins, received the money in bonuses and stock sale profits while CSK was committing accounting fraud. According to the SEC, its action against Jenkins charging him with violations of the Sarbanes-Oxley Act
is the first action seeking reimbursement under the SOX “clawback” provision (Section 304) from an individual who is not alleged to have otherwise violated the securities laws. The SOX “clawback” provision deprives corporate executives of money that they earned while their companies were misleading investors.
