Executives Charged With Manipulating Company's Accounting Systems to Steal Money
https://www.sec.gov/news/pressrelease/2017-64.html
Executives Charged With Manipulating Company's Accounting Systems to Steal Money
FOR IMMEDIATE RELEASE
2017-64
Washington D.C., March 10, 2017
The Securities and Exchange Commission today charged two former executives at a credit card processing company with masterminding a fraudulent scheme to steal millions of dollars through phony expense reimbursements, inflated invoices, and other improper accounting tactics. The SECs complaint alleges that iPayments then-senior vice president of sales and marketing Nasir N. Shakouri and then-executive vice president and chief operating officer Robert S. Torino routinely reimbursed themselves for payments that were never actually made to third-party vendors using their personal credit cards. They also allegedly conspired with vendors to inflate invoices and receive kickbacks from the overpayments, and claimed improper commissions and bonuses related to other corporate funds they improperly diverted in various ways.
The SECs complaint also charges three other iPayment executives Bronson L. Quon, John S. Hong, and Jonathan K. Skarie with participating in the scheme and helping Shakouri and Torino falsify books and records to hide the thefts of corporate funds. Quon, Hong, and Skarie were allegedly rewarded for their assistance with misappropriated iPayment funds.
As alleged in our complaint, these executives manipulated iPayments internal accounting systems, lied to the external auditor, and caused approximately $11.6 million in losses to the company, said Sanjay Wadhwa, Senior Associate Director of the SECs New York Regional Office.
In a parallel action, the U.S. Attorneys Office for the Central District of California today announced criminal charges against Shakouri and Torino.
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