September 20, 2020

Koss (Man and Company) Settles with SEC for Four Years Worth of Trainwreck Financial Statements

One-man C-suite Michael Koss and the company that bears his name settled with the SEC today, according to a Commission litigation release. This all stems from the dodgy financial statements the company put out from 2005 to 2009 that were carefully orchestrated by shopper-'til-you-stopped-her Sue Sachdeva. As for the punishment, well, it's kinda meh:

The Injunctive Orders:
 
(1) Enjoin Koss from violating and Michael J. Koss from aiding and abetting violations of the reporting, books and records and internal controls provisions (Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934 and Rules 12b-20, 13a-1, 13a-11 and 13a-13) of the federal securities laws and Michael J. Koss from violating the certification provision (Section 13a-14 of the Exchange Act) and
 
(2) Order Michael J. Koss to reimburse Koss $242,419 in cash and 160,000 of options pursuant to Section 304 of the Sarbanes-Oxley Act. This bonus reimbursement, together with his previous voluntary reimbursement of $208,895 in bonuses to Koss Corporation represents his entire fiscal year 2008, 2009 and 2010 incentive bonuses.
Perhaps, a more suitable punishment would be that Mr. Koss be required to round up some of Sue's loot and wear it to the office for a week. At this point, it's not like he can be any more embarrassed over this fiasco. 
 
[via SEC]

 

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