SEC Charges Former Executives Of San Francisco Bay Area Company With Accounting Violations Date
02/02/2021
The Securities and Exchange Commission today charged Joseph Jackson and Colm Callan, respectively the former CEO and CFO of WageWorks Inc. with making false and misleading statements and omissions, including to the company’s auditors, that resulted in the company’s improper recognition of revenue related to a contract with a large public-sector client. The settlements with both individuals include reimbursement of certain incentive-based compensation from the period during which the misconduct took place.
According to the SEC s order, in March 2016, WageWorks, a provider of Flexible Spending Account services, signed a contract with a large client to process benefits claims for certain public-sector employees. The order finds that on multiple occasions after the contract was signed, the client s employees told WageWorks that it did not intend to pay for certain de
FOR IMMEDIATE RELEASE Washington D.C., Feb. 2, 2021
The Securities and Exchange Commission today charged Joseph Jackson and Colm Callan, respectively the former CEO and CFO of WageWorks Inc. with making false and misleading statements and omissions, including to the company’s auditors, that resulted in the company’s improper recognition of revenue related to a contract with a large public-sector client. The settlements with both individuals include reimbursement of certain incentive-based compensation from the period during which the misconduct took place.
According to the SEC s order, in March 2016, WageWorks, a provider of Flexible Spending Account services, signed a contract with a large client to process benefits claims for certain public-sector employees. The order finds that on multiple occasions after the contract was signed, the client s employees told WageWorks that it did not intend to pay for certain development and transition work associate
Robinhood agrees to pay $65M fine to settle SEC investigation - San Francisco Business Times bizjournals.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bizjournals.com Daily Mail and Mail on Sunday newspapers.
Robinhood pays $65m to settle SEC charges
Stock trading app Robinhood has agreed to pay $65m in charges to settle claims it had misled customers about payments it received for handling their trades.
Between 2015 and late 2018, Robinhood made “misleading statements and omissions in customer communications… about its largest revenue source when describing how it made money,” according to the Securities and Exchange Commission.
This included “payment for order flow” which saw trading firms pay Robinhood in exchange for routing customer orders to them.
The SEC’ found that one of Robinhood’s main selling points – that trading was “commission free” – was due in large part because of its “unusually high payment for order flow rates” and customers’ orders were executed at prices lower than brokers’ prices.
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Washington, D.C. (Newsfile Corp. - December 17, 2020) - The Securities and Exchange Commission today charged Robinhood Financial LLC for repeated misstatements that failed to disclose the firm s receipt of payments from trading firms for routing customer orders to them, and with failing to satisfy its duty to seek the best reasonably available terms to execute customer orders. Robinhood agreed to pay $65 million to settle the charges.
According to the SEC s order, between 2015 and late 2018, Robinhood made misleading statements and omissions in customer communications, including in FAQ pages on its website, about its largest revenue source when describing how it made money - namely, payments from trading firms in exchange for Robinhood sending its customer orders to those firms for execution, also known as payment for order flow. As the SEC s order finds, one of Robinhood s selling points to customers was that trading was commission free, but due in large part to its unu