By Jaclyn Jaeger2021-02-03T17:04:00+00:00
The Securities and Exchange Commission (SEC) on Tuesday charged two former executives of WageWorks, an employee benefits provider, with making false and misleading statements and omissions that resulted in the improper recognition of $3.6 million in revenue.
Without admitting or denying the SEC’s findings, former Chief Executive Officer Joseph Jackson agreed to pay a $75,000 penalty and reimburse WageWorks for $1.9 million in incentive-based compensation and profits from the sale of company stock. Former Chief Financial Officer Colm Callan agreed to pay a $100,000 penalty and reimburse WageWorks for $157,590 in incentive-based compensation.
The details: In March 2016, WageWorks signed a contract with a large client to process benefits claims for certain public-sector employees. On multiple occasions after signing the contract, the client’s employees informed WageWorks it did not intend to pay for certain development and transition work
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