Defendant Name: Healthcare Services Group, Inc.

Defendant Type: Public Company
SIC Code: 7340
CUSIP: 42190610

Initial Case Details

Legal Case Name In the Matter of Healthcare Services Group, Inc., John C. Shea, CPA, and Derya D. Warner
First Document Date 24-Aug-2021
Initial Filing Format Administrative Action
File Number 3-20468
Allegation Type Issuer Reporting and Disclosure
AAER 4244

Violations Alleged

Exchange Act
• Rule 12b-20
• Sec 13(a)
• Rule 13a-1
• Rule 13a-11
• Rule 13a-13
• Rule 13a-15
• Sec 13(b)(2)(A)
• Sec 13(b)(2)(B)
Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)
Additionally, John C. Shea, CPA is alleged to have caused Healthcare Services Group, Inc.'s violation of Rule 12b-20 of the Exchange Act.
John C. Shea, CPA is alleged to have caused Healthcare Services Group, Inc.'s violation of Sec 13(a) of the Exchange Act.
John C. Shea, CPA is alleged to have caused Healthcare Services Group, Inc.'s violation of Rule 13a-1 of the Exchange Act.
John C. Shea, CPA is alleged to have caused Healthcare Services Group, Inc.'s violation of Rule 13a-11 of the Exchange Act.
John C. Shea, CPA is alleged to have caused Healthcare Services Group, Inc.'s violation of Rule 13a-13 of the Exchange Act.
John C. Shea, CPA is alleged to have caused Healthcare Services Group, Inc.'s violation of Rule 13a-15 of the Exchange Act.
John C. Shea, CPA is alleged to have caused Healthcare Services Group, Inc.'s violation of Sec 13(b)(2)(A) of the Exchange Act.
John C. Shea, CPA is alleged to have caused Healthcare Services Group, Inc.'s violation of Sec 13(b)(2)(B) of the Exchange Act.
John C. Shea, CPA is alleged to have caused Healthcare Services Group, Inc.'s violation of Sec 17(a)(2) of the Securities Act.
John C. Shea, CPA is alleged to have caused Healthcare Services Group, Inc.'s violation of Sec 17(a)(3) of the Securities Act.

Resolutions

First Resolution Date 24-Aug-2021
Headline Total Penalty and Disgorgement $6,000,000

Related Documents:

2021-162 24-Aug-2021 Press Release--Administrative Proceeding
SEC Charges Healthcare Services Company and CFO for Failing to Accurately Report Loss Contingencies as part of Continuing EPS Initiative
The SEC "announced that Pennsylvania-based Healthcare Services Group, Inc. has agreed to pay $6 million to settle charges that the company engaged in accounting and disclosure violations that enabled the company to report inflated quarterly earnings per share (EPS) that met research analysts' consensus estimates for multiple quarters."
33-10967 24-Aug-2021 Administrative Proceeding
Order Instituting Public Administrative and Cease-and-Desist Proceeding Pursuant to Section 8A of the Securities Act of 1933, Sections 4C and 21C of the Securities Exchange Act of 1934, and Rule 102(e) of the Commission's Rules of Practice, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On August 24, 2021, the SEC instituted settled public administrative and cease-and-desist proceedings against Healthcare Services Group, Inc., John C. Shea, CPA, and Derya D. Warner stating: "This matter involves the failure of Healthcare Services Group, Inc. ("HCSG") to properly accrue for or disclose loss contingencies relating to pending civil litigation in violation of generally accepted accounting principles ("GAAP"), resulting in the reporting of inflated net income and earnings per share ("EPS") in certain periods."

Other Defendants in Action:

John C. Shea, CPA
Derya D. Warner