SAExploration Accused of Accounting Fraud

Lincoln Wylie

The Securities and Exchange Commission has filed civil rates towards SAExploration Holdings, a publicly traded seismic data acquisition business centered in Houston, above an alleged multi-calendar year accounting fraud that falsely inflated the company’s revenue and hid the theft of millions of bucks.

In a complaint filed in the Southern District of New York, the SEC reported senior executives engaged in an “elaborate, four-calendar year-very long fraud.” It names previous main government officer and chairman Jeffrey Hastings, previous main economic officer and typical counsel Brent Whiteley, previous CEO and main running officer Brian Beatty, and previous 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 series of seismic data acquisition contracts totaling approximately $one hundred forty million with a purportedly unrelated Alaska-centered business that was in truth controlled by Hastings and Whiteley. The defendants allegedly misappropriated almost $6 million from SAE and applied the cash for a series of round-trip transactions then stole approximately $6 million for on their own. Whiteley allegedly misappropriated an added $4 million via a independent fictitious bill scheme.

The U.S. Attorney’s Business for the Southern District of New York declared criminal rates towards Hastings in a parallel motion.

Hastings was arrested final month in Anchorage, Alaska. A spokesperson for the business reported he was set on administrative depart far more than a calendar year in the past and then resigned.

“As alleged in our complaint, SAE’s executives made a multi-faceted fraud that enriched executives at the expense of investors,” Jennifer Leete, an associate director in the division of enforcement, reported in a assertion. “We will vigorously pursue wrongdoing by persons and businesses who interact in fraud and mislead investors.”

The SEC is searching for a long-lasting injunction towards SAE and executives, civil penalties, disgorgement and business-and-director bars towards the executives.

accounting fraudSAExploration Holdings, The Securities and Exchange Commission

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