The AgFeed case is the mother lode for an SEC that says it’s ready to rack up some accounting fraud enforcement points and, perhaps, pursue a more aggressive enforcement approach to sparsely utilized Sarbanes-Oxley provisions like Section 304, clawbacks.
The Sarbanes-Oxley Act of 2002 and Dodd-Frank’s clawback provision both require a restatement. The restatement of financial results to correct material errors – whether those errors occurred by default or by design – is a necessary condition for enforcing both the Sarbanes-Oxley Section 304 provision and the new Dodd-Frank law.
Picture Source Well, this was news to me. I have written before about incentive compensation and the crime of giving executives bonuses based on targets they set and numbers they have the power to manipulate. So I am excited, tickled pink and delirious over the possibility that the SEC may start to enforce this provision. […]
