Zenefits, Co-Founder Of Startup Pay Nearly $1M To Settle With SEC
The California-based company, which provides software to businesses in hopes of selling them health-insurance plans, made false statements to investors about whether its employees were properly licensed, according to the Securities and Exchange Commission.
The Wall Street Journal:
Health-Benefits Broker Zenefits, Co-Founder Conrad Settle With SEC
Health-benefits broker Zenefits and its co-founder Parker Conrad have settled charges brought by the U.S. Securities and Exchange Commission that they misled investors, the regulator said Thursday. Zenefits will pay a $450,000 penalty and Mr. Conrad will pay $534,000 to settle the charges without admitting or denying the findings that they violated securities laws. The SEC charged that the company and Mr. Conrad made false statements to investors about whether its employees were properly licensed to sell insurance. The company offers businesses free human-resources software in hopes of selling them health-insurance plans. (Winkler, 10/26)
Zenefits And Co-Founder Parker Conrad To Pay SEC Fine Of Nearly $1 Million
Silicon Valley business software startup Zenefits and its co-founder Parker Conrad have been fined nearly $1 million by the U.S. Securities and Exchange Commission as part of a settlement over charges that they misled investors. Zenefits will pay a $450,000 penalty and Conrad, who resigned as the company's chief executive in early 2016, will pay more than $533,000 to settle charges that the company lied about its compliance with state insurance regulations. (Somerville, 10/26)