Defendant Name:
RCI Hospitality Holdings, Inc.
Defendant Type:
Public Company
SIC Code:
5810
CUSIP:
74934Q10
Document Reference:
34-89935
Document Details
Legal Case Name
In the Matter of RCI Hospitality Holdings, Inc., Eric S. Langan, and Phillip K. Marshall, CPA
Document Name
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order
Document Date
21-Sep-2020
Document Format
Administrative Proceeding
Allegation Type
Issuer Reporting and Disclosure
Document Summary
On September 21, 2020, the SEC instituted settled cease-and-desist proceedings against RCI Hospitality Holdings, Inc. The Commission stated: "These proceedings arise from RCI's disclosure and controls failures concerning executive compensation and related party transactions. From fiscal year ("FY") 2014 through FY 2019, RCI failed to disclose a total of $615,000 in executive compensation in the form of perquisites. These undisclosed perquisites included the cost of the personal use of the company's aircraft and company provided vehicles, reimbursement for personal commercial airline flights, the company's charitable contributions to the school two of Langan's children attended, and the cost of providing housing and a meals allowance to Marshall. In addition, RCI failed to disclose related party transactions involving Langan's father and brother and a director's brother. RCI also failed to keep accurate books and records, and lacked sufficient internal accounting controls concerning, these executive perquisites and related party transactions. Chief Executive Officer ("CEO") Langan committed and he and Chief Financial Officer ("CFO") Marshall caused these violations."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Cooperation Before the Resolution
Remedial Acts or Efforts Before the Resolution
Monetary Penalties:
Civil Penalty
Individual:
$400,000.00
Shared:
Other Defendants in Action:
