Ex-GC of New Jersey Software Firm Settles Fraud Claims for $25,000
Ex-general counsel Ronald Prague is one of seven former senior employees of Bridgewater-based Synchronoss settling with the SEC. The company also settled and agreed to pay a $12.5 million penalty.
June 09, 2022 at 03:00 PM
3 minute read
The original version of this story was published on Corporate Counsel
As part of a settlement with the U.S. Securities and Exchange Commission, a Bridgewater based software company's former general counsel will pay a $25,000 civil penalty and be suspended from practicing before the federal agency for 18 months.
Ronald Prague, who departed Synchronoss Technologies in 2021 after 15 years with the company, is one of seven senior employees the SEC alleged played a role in accounting misconduct between 2013 and 2017.
The SEC also charged the company, which is settling by agreeing to pay a $12.5 million penalty, without admitting or denying the allegations.
Prior to joining Synchronoss, Prague was an in-house attorney at Intel Corp., according to his LinkedIn.
The other senior employees include former chief financial officer Karen Rosenberger and former controller Joanna Lanni, both of whom are defendants in a federal complaint the SEC filed Tuesday in the Southern District of New York.
The complaint alleges Rosenberger helped the company file false financial disclosures about multiple transactions between 2015 and 2017, and engaged in fraud with respect to three transactions. Two involved one of the company's largest customers, while one concerned an acquisition.
Rosenberger also tried to cover up the misconduct by lying to Synchronoss's auditor, the complaint alleged, adding that Lanni was involved in improper accounting for one transaction.
This misconduct resulted in the company improperly recording about $26 million in revenue.
Prague is not mentioned in the complaint.
The remaining four senior employees also settled their charges.
"Investors are entitled to rely on financial statements that are free of accounting improprieties, and when an issuer and its executives and employees engage in accounting gimmicks, we will use every available tool, including significant corporate penalties and individual accountability, to address such misconduct," Gurbir Grewal, director of the SEC's division of enforcement and former attorney general of New Jersey, said in a statement Tuesday.
"Today's action should also put public company executives on notice that, even when they are not charged with having a role in the misconduct at issue, we will still pursue clawbacks of compensation under SOX 304 to ensure they do not financially benefit from their company's improper accounting."
Jeff Miller, president and CEO of Synchronoss, said in a statement, "This matter relates to historical transactions that the Company restated almost four years ago, and Synchronoss believes that reaching this resolution now is the right outcome for our shareholders, customers and key stakeholders."
Company founder and former chief executive officer Stephen Waldis was not charged with misconduct but agreed to reimburse the company for more than $1.3 million in stock sale profits and bonuses. He has also agreed to return previously granted shares of company stock.
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllFatal Shooting of CEO Sets Off Scramble to Reassess Executive Security
5 minute readPromoting Diversity in the Business of Law Is Good for Business
Sports Attorney Rejoins Jets for Second Tour of Duty as GC
Trending Stories
- 1Call for Nominations: Elite Trial Lawyers 2025
- 2Senate Judiciary Dems Release Report on Supreme Court Ethics
- 3Senate Confirms Last 2 of Biden's California Judicial Nominees
- 4Morrison & Foerster Doles Out Year-End and Special Bonuses, Raises Base Compensation for Associates
- 5Tom Girardi to Surrender to Federal Authorities on Jan. 7
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250