SAExploration Accused of Accounting Fraud

The Securities and Trade Commission has submitted civil fees towards SAExploration Holdings, a publicly traded seismic facts acquisition organization centered in Houston, more than an alleged multi-yr accounting fraud that falsely inflated the company’s income and concealed the theft of hundreds of thousands of dollars.

In a criticism submitted in the Southern District of New York, the SEC claimed senior executives engaged in an “elaborate, 4-yr-very long fraud.” It names former chief government officer and chairman Jeffrey Hastings, former chief financial officer and common counsel Brent Whiteley, former CEO and chief operating officer Brian Beatty, and former vice president of operations Michael Scott as defendants. It also names the spouses of Hastings and Whiteley, Lori Hastings and Thomas O’Neill, as relief defendants.

The executives allegedly entered into a collection of seismic facts acquisition contracts totaling about $one hundred forty million with a purportedly unrelated Alaska-centered organization that was in simple fact controlled by Hastings and Whiteley. The defendants allegedly misappropriated virtually $6 million from SAE and applied the money for a collection of round-journey transactions then stole about $6 million for by themselves. Whiteley allegedly misappropriated an extra $4 million by means of a independent fictitious bill scheme.

The U.S. Attorney’s Workplace for the Southern District of New York announced prison fees towards Hastings in a parallel motion.

Hastings was arrested final thirty day period in Anchorage, Alaska. A spokesperson for the organization claimed he was place on administrative go away a lot more than a yr back and then resigned.

“As alleged in our criticism, SAE’s executives intended a multi-faceted fraud that enriched executives at the cost of investors,” Jennifer Leete, an affiliate director in the division of enforcement, claimed in a assertion. “We will vigorously go after wrongdoing by people and organizations who interact in fraud and mislead investors.”

The SEC is in search of a permanent injunction towards SAE and executives, civil penalties, disgorgement and workplace-and-director bars towards the executives.

accounting fraudSAExploration Holdings, The Securities and Trade Commission

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