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