SEC enforces rules regarding undisclosed perks
The SEC alleged that MDC Partners failed to disclose that it had provided perks worth approximately $11.285 million dollars to Miles Nadal, the former CEO of the company. The company paid for “private aircraft usage, cosmetic surgery, yacht-and-sports-car-related expenses, jewelry, cash for tips and gratuities, medical expenses for Nadal, family members and others, charitable donations in Nadal’s name, pet care, vacation and personal travel expenses, and club memberships.” The perks were not reported on the company’s proxy statements, annual reports or securities offering documents. The non-disclosure caused the company to materially understate the compensation paid to Mr. Nadal.
As a result of the company’s lack of disclosure, the SEC charged that MDC Partners had violated internal control regulations, proxy rules, periodic reporting rules, issuer rules and non-GAAP financial rules.
