Former Hertz CEO Mark Frissora will pay more than $2 million to settle U.S. Securities and Exchange Commission charges related to inaccurate financial statements filed during his tenure at the car rental company.
The SEC last week charged Frissora, who led Hertz from 2007 to 2014, with aiding and abetting in the inaccurate filings, saying he "pressured subordinates to 'find money,' principally by re-analyzing reserve accounts, causing Hertz's staff to make accounting changes that rendered the company's financial reports materially inaccurate," according to the SEC. The SEC complaint also alleged that Frissora kept rental cars in Hertz's fleet for longer periods to lower depreciation expenses without properly disclosing that and related risks to investors.
In a settlement, in which Frissora neither admitted to nor denied the accusations, Frissora agreed to reimburse $1.98 million to Hertz from his bonuses and incentive-based compensation as well as a $200,000 civil penalty. The settlement is pending court approval.
Hertz in February 2019 agreed to pay a $16 million penalty to settle SEC fraud charges related to the filings.
Source: Business Travel News