May 18, 2024

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SAExploration Accused of Accounting Fraud

The Securities and Trade Fee has submitted civil rates from SAExploration Holdings, a publicly traded seismic facts acquisition enterprise based in Houston, more than an alleged multi-yr accounting fraud that falsely inflated the company’s profits and hid the theft of millions of dollars.

In a complaint submitted in the Southern District of New York, the SEC explained senior executives engaged in an “elaborate, four-yr-extensive fraud.” It names former chief govt officer and chairman Jeffrey Hastings, former chief monetary officer and general counsel Brent Whiteley, former CEO and chief operating officer Brian Beatty, and former vice president of functions Michael Scott as defendants. It also names the spouses of Hastings and Whiteley, Lori Hastings and Thomas O’Neill, as aid defendants.

The executives allegedly entered into a series of seismic facts acquisition contracts totaling close to $one hundred forty million with a purportedly unrelated Alaska-based enterprise that was in point managed by Hastings and Whiteley. The defendants allegedly misappropriated virtually $six million from SAE and utilized the funds for a series of round-journey transactions then stole close to $six million for by themselves. Whiteley allegedly misappropriated an additional $4 million by way of a different fictitious bill plan.

The U.S. Attorney’s Office for the Southern District of New York announced prison rates from Hastings in a parallel action.

Hastings was arrested last month in Anchorage, Alaska. A spokesperson for the enterprise explained he was put on administrative go away a lot more than a yr back and then resigned.

“As alleged in our complaint, SAE’s executives built a multi-faceted fraud that enriched executives at the cost of buyers,” Jennifer Leete, an affiliate director in the division of enforcement, explained in a assertion. “We will vigorously pursue wrongdoing by folks and corporations who engage in fraud and mislead buyers.”

The SEC is in search of a long lasting injunction from SAE and executives, civil penalties, disgorgement and office-and-director bars from the executives.

accounting fraudSAExploration Holdings, The Securities and Trade Fee