Defendant Name:
Huntington Bancshares, Inc.
Defendant Type:
Public Company
SIC Code:
6020
CUSIP:
44615010
Document Reference:
33-8579
Document Details
Legal Case Name
In the Matter of Huntington Bancshares, Inc., Thomas E. Hoaglin, Michael J. McMennamin, and John Van Fleet, CPA
Document Name
Order Instituting Public Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934 and Rule 102(e) of the Commission's Rules of Practice, Making Findings, Imposing a Cease-and-Desist Order, Imposing Remedial Sanctions, and Other Relief
Document Date
02-Jun-2005
Document Format
Administrative Proceeding
Allegation Type
Issuer Reporting and Disclosure
Document Summary
On June 2, 2005, the SEC instituted settled administrative and cease-and-desist proceedings against Huntington Bancshares, Inc., Thomas E. Hoaglin, Michael J. McMennamin, and John Van Fleet, CPA. According to the SEC: "This matter involves financial reporting fraud in connection with Huntington's financial statements included in the annual reports the Bank filed with the Commission for fiscal years 2001 and 2002 in violation of Sections 17(a)(2) and 17(a)(3) of the Securities Act. In both years, Huntington reported inflated earnings in its financial statements, enabling the Bank to meet or exceed Wall Street analyst earnings per share ('EPS') expectations and to meet internal EPS targets ('Target EPS') that determined the bonuses of senior management. Using improper accounting that was qualitatively material, Huntington overstated 2001 operating earnings by $8.5 million ($.04 per share) and 2002 operating earnings by $17.1 million ($.08 per share). Without the misstatements, Huntington's earnings would have fallen short of analyst operating earnings expectations in both years and in 2002 bonuses for Hoaglin and McMennamin, the Bank's CEO and CFO, respectively, would have been eliminated and the bonus for Van Fleet, the Bank's controller, would have been reduced. In 2001 and 2002, Huntington offered and sold securities pursuant to Forms S-3 and S-8 registration statements filed with the Commission under the Securities Act. The registration statements incorporated by reference materially misleading reports filed under Section 13(a) of the Exchange Act and Rule 13a-1 thereunder containing the above-described overstatements of earnings."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Fair Funds
Monetary Penalties:
Disgorgement
Individual:
$1.00
Shared:
Other Defendants in Action:
