On May 24, 2016, the SEC instituted settled cease-and-desist proceedings against Swisher Hygiene Inc. ("Swisher"). According to the SEC: "Swisher reported materially misstated financial results to the investing public and in filings with the Commission during the first three quarters of 2011. The filings with the Commission included Registration Statements, Forms 8-K and quarterly reports on Forms 10-Q. The improper accounting involved, among other things, the accounting for business combinations in a manner that was not in conformity with Generally Accepted Accounting Principles ('GAAP'), as well as the improper use of reserve accounts to reduce losses. In addition, beginning in the second quarter of 2011 and continuing through the remainder of that year, Swisher engaged in a scheme to manage reported financial results to predetermined Adjusted EBITDA targets. The scheme, orchestrated by one or more senior officers of Swisher, occurred during the financial statement closing process for each of the relevant periods and involved the manipulation and recording of accounting entries that were not in conformity with GAAP in order to achieve a predetermined target. Once the desired target was achieved, the financial statement closing process would cease with no further analysis of other significant accounts. Accounting entries that were utilized in furtherance of the scheme included those related to earnout accruals, compensation for employees of acquired entities, unfavorable contracts, insurance reserves and the allowance for doubtful accounts receivable." While the SEC deemed it appropriate to impose a civil penalty on Swisher, the SEC did not order a civil penalty because of a $2,000,000 penalty Swisher paid to the United States under a deferred prosecution agreement with the Department of Justice.