7.22.2009 In the SEC’s third enforcement action coming out of its investigation of CSK Auto Corp.’s alleged accounting misconduct, the SEC brought charges against former CEO Maynard Jenkins, alleging violations of the Sarbanes-Oxley Act (SOX). This is the first action seeking reimbursement under the SOX clawback provision (§ 304) from an individual who is not alleged to have otherwise violated the securities laws. The SOX clawback provision deprives corporate executives of money that they earned while their companies were misleading investors. The SEC has asked a court to order Jenkins to reimburse the company and its shareholders more than $4 million that he received in bonuses and stock sale profits while CSK was committing accounting fraud.
Click http://www.sec.gov/news/press/2009/2009-167.htm to access the SEC press release.