Two men share securities regulation news

Breaking news and expert analysis on legal and compliance issues

[Back To Home][Back To Archives]

From Securities Regulation Daily, May 11, 2017

Company executive hides over $11M perks from shareholders

By Jay Fishman, J.D.

The SEC entered into a settlement with the former Chief Executive Officer of MDC Partners, Inc., a Canadian incorporated, New York-based marketing company, following the CEO’s failure to disclose to shareholders his receipt of $11.285 million in perks from the company. The SEC, upon charging the resigned CEO with violating Exchange Act, Section 10(b)/Rule10b-5, among other Act and rule sections, ordered him to: (1) cease and desist from causing future violations; (2) refrain from being a company director or officer for five years from the order date; and (3) pay a total $5.5 million—$1.85 million in disgorgement, $150,000 in prejudgment interest, and $3.5 million in civil penalties (In the Matter of Miles S. Nadal, May 11, 2017).

Failure to disclose perks. The SEC acknowledged that the CEO, on the company’s 2009 to 2014 proxy statements, disclosed $3.87 worth of perquisites and personal benefits. But the SEC’s complaint declared that during this same period, the CEO failed to disclose an additional $11.285 million in perks that he used for a private aircraft, cosmetic surgery, yacht-and-sports-car-related expenses, jewelry, cash for tips and gratuities, medical expenses for family members, charitable donations, pet care, club memberships and travel.

G. Jeffrey Boujoukos, the SEC’s Philadelphia Regional Office Director, said that "perks paid to corporate executives should be properly disclosed so that investors can make informed decisions. Nadal improperly received and failed to disclose millions of dollars in compensation."

The release is No. 80652.

MainStory: TopStory DirectorsOfficers Enforcement FraudManipulation InternationalNews PublicCompanyReportingDisclosure NewYorkNews

Back to Top

Securities Regulation Daily

Introducing Wolters Kluwer Securities Regulation Daily — a daily reporting service created by attorneys, for attorneys — providing same-day coverage of breaking news, court decisions, legislation, and regulatory activity.


A complete daily report of the news that affects your world

  • View full summaries of federal and state court decisions.
  • Access full text of legislative and regulatory developments.
  • Customize your daily email by topic and/or jurisdiction.
  • Search archives for stories of interest.

Not just news — the right news

  • Get expert analysis written by subject matter specialists—created by attorneys for attorneys.
  • Track law firms and organizations in the headlines with our new “Who’s in the News” feature.
  • Promote your firm with our new reprint policy.

24/7 access for a 24/7 world

  • Forward information with special copyright permissions, encouraging collaboration between counsel and colleagues.
  • Save time with mobile apps for your BlackBerry, iPhone, iPad, Android, or Kindle.
  • Access all links from any mobile device without being prompted for user name and password.