The rest of the story - For Now
8 Nov 16:46
Goldinger, who operated Capital Insight Brokerage Inc. in Beverly Hills,
Calif., settled with the SEC without admitting or denying its allegations. Under
the settlement, he agreed not to violate the antifraud, periodic-reporting,
books and records, and internal-accounting-control provisions of U.S. securities
laws; and to disgorge his gains from the alleged scheme, and to pay civil
penalties, the SEC said.
Goldinger was also charged Monday by the U.S. Attorney for the Central
District of California with four felony counts of wire fraud, and the Commodity
Futures Trading Commission charged him and his brokerage firm with commodities
fraud, the SEC said. He settled with the CFTC, agreeing not to violate the
antifraud provisions of U.S. commodities and futures laws and to pay $6 million,
offset by any payments made in his criminal case.
PairGain consented to an SEC order not to violate the antifraud, period books
and records, and internal-accounting-control provisions of U.S. securities laws.
The U.S. Attorney also said PairGain has agreed to plead guilty to a one-count
felony for failing to maintain internal accounting controls and accurate
financial books and records in violation of U.S. securities laws. As part of its
plea agreement, the company is under probation for four years and must pay $1.4
million - $1 million in fines and $400,000 for the costs the government incurred
in prosecuting the company.
As part of its probation terms, PairGain must retain an expert to examine and
make recommendations on its internal accounting controls and record keeping
within 60 days. It must also file quarterly periodic reports and financial
statements with the SEC that are reviewed by its outside accountants, are signed
by all members of the board except Strauch, and aren't prepared exclusively by
Strauch and McBrayer.
Strauch and McBrayer settled their SEC case, too, without admitting or denying
the allegations. The two men agreed not to violate U.S. antifraud provisions,
and McBrayer agreed not to violate the periodic-reporting, books and records,
and internal-accounting-control provisions. They each agreed to pay civil
penalties of $25,000.
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