MiMedx Group, Marietta, Georgia. (Photo: Google)

A Marietta, Georgia-based biopharmaceutical company announced the hiring of a new general counsel on the same day the company agreed to pay the Securities and Exchange Commission $1.5 million to settle allegations of accounting fraud.

William "Butch" Hulse was named general counsel and secretary of MiMedx Group Inc. He will take up the role beginning Dec. 2.

A spokesperson for MiMedx declined to further comment on Hulse's hiring and did not further comment on the allegations from the SEC beyond the press release.

The company's CEO, Timothy Wright, said in the press release that Hulse has a "rare combination of business acumen, deep legal expertise and practical experience."

"His extensive regulatory knowledge and regenerative medicine experience will be a valued asset to the company as we advance our [biologics license application] pipeline toward specific [Food and Drug Administration]-approved clinical indications targeting musculoskeletal degeneration and other unmet clinical needs," Wright said. "We are excited to welcome him to the MiMedx team."

Hulse was most recently a member of the litigation department of Dykema and his practice focused on internal, third party and government investigations and compliance program development. From 2008 to 2017, Hulse worked in-house at Acelity, where he held roles including chief compliance officer, divisional general counsel and associate general counsel. Hulse is a graduate of the Baylor University School of Law.

Hulse's experience with government investigations could prove useful to the company. On Tuesday, the company and the SEC announced a $1.5 million settlement over allegations of accounting fraud. The company did not admit to any wrongdoing but did agree to the fine to settle the claims.

The SEC had charged the biotech company and three of its former executives with accounting fraud. The SEC alleges that from 2013 to 2017, former CEO Parker H. Petit and former chief operating officer William C. Taylor entered into undisclosed side arrangements with five distributors. The arrangements allowed for "distributors to return product to MiMedx or conditioned distributors' payment obligations on sales to end-users," according to the SEC press release.

Petit, Taylor and the company's former chief financial officer, Michael Senken, allegedly covered up the scheme. They allegedly continued to cover up the scheme after the company's former controller raised concerns about specific distributor transactions. The SEC's litigation against Taylor, Petit and Senken is ongoing, the SEC said in the press release.

In a statement, Wright said the company appreciates the SEC's recognition that it is cooperating in the investigation.

"We are focused on our future as a mission-centered health care company and are committed to continued implementation of strong financial systems and independent oversight controls, which reflect both sound business practices and an ethical culture," Wright said.

The company is also in the middle of a criminal investigation from the U.S. Attorney's Office for the Southern District of New York. In a press release, the company said it is cooperating with the criminal investigation.

On Tuesday, the U.S. attorney's office unsealed an indictment charging Petit and Taylor with conspiracy to commit securities fraud, making false filings with the SEC and improperly influencing the conduct of audits.