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Former Hertz CEO to pay USD2 million to settle accounting fraud charges
Former Hertz chairman and CEO Mark Frissora has agreed to settle with the Securities and Exchange Commission over charges he ‘aided and abetted’ financial irregularities.
Frissora will repay nearly $2 million from incentive-based pay to the struggling car rental firm.
The SEC alleged Frissora put pressure on staff to ‘find money,’ to make accounting changes to its 2013 results which rendered them ‘materially inaccurate.’
The SEC said Frissora ordered Hertz to keep rental cars in its fleet for longer to lower depreciation expenses and didn’t disclose the change.
Hertz revised its financial results in 2014 and restated them in July 2015.
"Investors are entitled to accurate and reliable disclosures of material information about a company’s financial condition. We are committed to holding corporate executives accountable when their actions deprive investors of such information," said Marc Berger, director of the SEC’s New York regional office.
Hertz agreed to pay $16 million to settle fraud and other accounting violations brought by the SEC in December 2018.
The car rental giant recently filed for bankruptcy.
The company has just made some changes to its senior finance team.
It appointed R. Eric Esper as new chief financial officer, replacing Jamere Jackson.
Also, Kenny K. Cheung takes over as executive vice president of finance.
Written by Ray Montgomery, US editor
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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