Poultry group gets first Sarbanes-Oxley fine
The US Securities and Exchange Commission has handed out its first penalties for breaches of the Sarbanes-Oxley Act, designed to improve corporate governance and financial reporting.
The financial watchdog settled federal civil charges with poultry company Rica Foods Inc and two top executives over accusations that the business certified its financial statement despite not having a report from an external auditor.
The SEC said that Rica’s annual statement submitted in January claimed to have a report from Big Four firm Deloitte & Touche although at the time of filing no such report had been submitted. The statements also contained errors, according to the SEC.
Chief executive Calixto Chaves was fined £25,000, although no admission of guilt was made.