Defendant Name: Gentex Corporation

Defendant Type: Public Company

Document Reference: 34-96819-s

Document Details

Legal Case Name In the Matter of Gentex Corporation and Kevin C. Nash
Document Name SEC Charges Gentex and Chief Financial Officer in Connection with EPS Initiative
Document Date 07-Feb-2023
Document Format Administrative Proceeding
File Number 3-21296
Allegation Type Issuer Reporting and Disclosure
Document Summary The SEC "announced charges against Gentex Corporation for financial reporting, books-and-records, and internal accounting controls violations arising out of the company's accounting for its executive and employee bonus compensation programs. The SEC also announced charges against Kevin Nash, Gentex's Chief Financial Officer, for related violations. These actions arise from the Division of Enforcement's Earnings Per Share ("EPS") Initiative, which utilizes risk-based data analytics to uncover potential accounting and disclosure violations caused by, among other things, earnings management practices."

Disgorgement & Penalty Information

Resolutions
Cease and Desist Order
Monetary Penalties:

Civil Penalty

Individual:     $4,000,000.00 Shared:    

Related Documents:

34-96819 07-Feb-2023 Administrative Proceeding
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
On February 7, 2023, the SEC instituted settled cease-and-desist proceedings against Gentex Corporation and Kevin C. Nash, stating: "This matter involves deficiencies in Gentex’s accounting for its executive and employee bonus compensation programs from the third quarter of 2015 through the second quarter of 2018 (the “Relevant Period”). These deficiencies were caused by an ineffective system of internal accounting controls, which made it possible for the company’s then-Chief Accounting Officer, Nash, and others in the accounting group, to make certain adjustments to the bonus compensation accruals without the required accounting analysis or without adequate supporting documentation."

Other Defendants in Action:

Kevin C. Nash