Gentex fined $4M for bonus compensation accounting lapses
By 
Kyle Brasseur2023-02-08T18:37:00
Michigan-based manufacturer Gentex Corp. agreed to pay $4 million as part of a settlement with the Securities and Exchange Commission (SEC) regarding alleged failures in its internal accounting controls that affected executive and employee bonus compensation programs over several years.
The enforcement action, announced Tuesday, is the latest under the SEC’s earnings per share initiative, in which the Division of Enforcement uses data analytics to uncover accounting and disclosure violations by public companies. In addition to the penalty, Gentex was ordered to cease and desist from future violations of the Securities Exchange Act.
Kevin Nash, Gentex’s chief financial officer, agreed to pay $75,000 in settling with the SEC over his alleged role in the company’s control lapses. Nash served as Gentex’s chief accounting officer during the relevant period.
Related articles
-
News BriefSEC commissioner calls out pitfalls in regulators’ structured data efforts
SEC Commissioner Hester Peirce warned about “potential pitfalls” with structured data, which regulators and lawmakers have embraced as a way to make data accessible and easy to use.
-
PremiumGoogle, Uber CCOs share approaches to data analytics
The chief compliance officers of Google and Uber offer insight into how their data analytics compliance programs have evolved amid enhanced scrutiny on use of technology from the Department of Justice.
-
ArticleSurgalign to pay $2M to settle accounting fraud charges
Medical implant manufacturer Surgalign will pay a $2 million penalty handed down by the SEC and recoup nearly $600,000 in incentive-based compensation from four senior executives who allegedly manipulated the company’s financial statements.
More from Regulatory Enforcement
-
ArticleGeorgia Tech to pay $875,000 for allegations brought by compliance officers
Georgia Tech Research Corp. (GTRC) has agreed to pay $875,000 to settle allegations first raised by two compliance officers that its cybersecurity protocols violated acceptable standards for defense contractors, the Department of Justice (DOJ) said.
-
ArticleTractor Supply Company hit with $1.35M fine for alleged California privacy violations
Tractor Supply Company has agreed to get into compliance with California’s consumer privacy law and to pay a $1.35 million fine—the largest yet by California—to settle allegations it violated the privacy rights of customers and job applicants.
-
Basic PageLuminUltra fined $685K by BIS for illegal shipment to Iran
A single $33,000 shipment to Iran triggered a six-figure penalty and years of compliance oversight for biotechnology company LuminUltra Technologies, Inc.