Defendant Name:
DGSE Companies Inc.
Defendant Type:
Public Company
SIC Code:
5094
CUSIP:
23323G10
Initial Case Details
Legal Case Name
SEC v. DGSE Companies Inc. and I. John Benson
First Document Date
27-May-2014
Initial Filing Format
Civil Proceeding
Case Number
14-cv-01909
Allegation Type
Issuer Reporting and Disclosure
Federal District Court
Texas, Northern District of Texas
Violations Alleged
•
DGSE is charged with reporting, recordkeeping, and internal controls failures.
Additionally,
I. John Benson is alleged to have aided and abetted DGSE Companies Inc. 's violation of Rule 12b-20 of the Exchange Act.
I. John Benson is alleged to have aided and abetted DGSE Companies Inc. 's violation of Sec 13(a) of the Exchange Act.
I. John Benson is alleged to have aided and abetted DGSE Companies Inc. 's violation of Rule 13a-1 of the Exchange Act.
I. John Benson is alleged to have aided and abetted DGSE Companies Inc. 's violation of Rule 13a-13 of the Exchange Act.
I. John Benson is alleged to have aided and abetted DGSE Companies Inc. 's violation of Sec 13(b)(2)(A) of the Exchange Act.
I. John Benson is alleged to have aided and abetted DGSE Companies Inc. 's violation of Sec 13(b)(2)(B) of the Exchange Act.
Resolutions
First Resolution Date
27-May-2014
Related Documents:
Complaint
On May 27, 2014, the SEC filed a complaint against DGSE Companies Inc. alleging "DSGE failed to maintain appropriate accounting systems, policies, procedures, and controls" leading to DGSE filing materially inaccurate financial statements.
SEC Charges Former CFO of Dallas-Based Jewelry and Collectibles Company with Accounting Fraud
On May 27, 2014, the SEC announced that it filed accounting fraud charges against DGSE companies Inc. and its former chief financial officer John Benson for manipulating its inventory accounts. According to the SEC: "DGSE and Benson each consented to injunctions against future violations of these provisions. DGSE also agreed to the appointment of an independent consultant to review the company's accounting controls, and DGSE has taken or agreed to take remedial steps to correct its deficiencies." In addition, "Benson agreed to a settlement in which he will pay a $75,000 penalty, be permanently barred from serving as an officer or director of a public company, and be suspended from practicing as an accountant on behalf of any publicly traded company or other entity regulated by the SEC."
2014-106
27-May-2014
Press Release--Civil Action
SEC Charges Former CFO of Dallas-Based Jewelry and Collectibles Company With Accounting Fraud
On May 27, 2014, the SEC announced that it filed accounting fraud charges against Dallas-based DGSE Companies Inc. ("DGSE") and its former chief financial officer I. John Benson ("Benson") for manipulating its inventory accounts. According to the SEC's complaint filed in the Dallas Division of U.S. District Court for the Northern District of Texas, Benson, taking advantage of the deficiencies in DGSE's accounting systems and controls, made repeated false accounting entries that materially inflated the value of inventory on the balance sheets at DGSE and significantly compromised the integrity of the company's financial data. DGSE and Benson agreed to settle the SEC's charges. As part of the settlement, Benson agreed to pay a $75,000 penalty, be permanently barred from serving as an officer or director of a public company, and be suspended from practicing as an accountant on behalf of any publicly traded company or other entity regulated by the SEC. DGSE agreed to the appointment of an independent consultant to review the company's accounting controls and to take remedial steps to correct its deficiencies.
Final Judgment as to Defendant DGSE Companies Inc.
On June 2, 2014, Judge Jane J. Boyle entered Final Judgment as to defendant DGSE Companies Inc. DGSE Companies Inc. consented to the entry of the Final Judgment without admitting or denying the allegations of the SEC's complaint.
Other Defendants in Action:
