SEC Charges Polycom and former CEO With Hiding Perks From Investors
Recently, the SEC charged the former CEO of Polycom with using nearly $200,000 in corporate funds for personal perks that were not disclosed to investors. The SEC alleges that in doing so, the former CEO violated the antifraud, proxy solicitation, periodic reporting, books and records and internal controls provisions of the federal securities laws. The SEC separately charged Polycom in a related administrative action finding that the company had inadequate internal and disclosure controls. The company agreed to settle the charges; however, the charges against the former CEO are pending in federal court. According to Andrew J. Ceresney, Director of the SEC’s Division of Enforcement, “[the SEC] will not hesitate to charge executives with fraud when they allegedly use a public company as a personal expense account and hide it from investors.” Read the SEC press release.