The SEC entered an administrative order ending its more than two-years long investigation into MDC Partners Inc. and imposed a civil penalty of $1.5 million for the resolution of all potential SEC claims related thereto.
The terms of the final order are consistent with the proposed framework deal the company reached with the Philadelphia Regional Office of the SEC. As per the order, the company neither admitted nor denied liability and agreed that it will not violate SEC rules regarding filing accurate period filings, maintenance of accurate books and records and a system of internal accounting controls, and compliance with securities laws with relation to solicitations of proxy. MDC Partners also agreed to disclose and reconcile non-GAAP financial measures.
The SEC launched an inquiry into expenses by the company's former CEO Miles Nadal, which was followed by various lawsuits accusing the company of violating federal securities law. As a result of the investigation, Nadal agreed to fully repay the company for improper expenses incurred in an aggregate amount of about $11.3 million, together with an amount equal to $10.6 million in respect of prior cash bonus awards.