Former Hertz CEO Mark Frissora Agrees To Settle Accounting Misconduct Claims

(RTTNews) - The former chief executive officer of Hertz Global Holdings, Mark Frissora, agreed to pay about $2.2 million to settle the U.S. Securities and Exchange Commission's claims that he played a key role in causing the now-bankrupt car-rental company to file inaccurate financial statements in 2013.

Frissora neither admitted nor denied the SEC's allegations but will refund Hertz about $1.98 million in bonus and other incentive-based compensation. He will also pay a $200,000 penalty to the U.S.The settlement is subject to court approval.

The SEC's complaint alleged that as Hertz's financial results fell short of its forecasts throughout 2013, Frissora pressured subordinates to "find money," principally by re-analyzing reserve accounts, causing Hertz's staff to make accounting changes that rendered the company's financial reports materially inaccurate.

In addition, the complaint alleged that Frissora approved Hertz's reaffirming its earnings guidance in November 2013, despite Hertz's internal calculations that projected lower earnings per share figures.

The complaint also alleged Hertz revised its financial results in 2014 and restated them in July 2015, reducing its previously reported pretax income by $235 million.

In December 2018, Hertz agreed to pay $16 million to settle related fraud and other charges brought by the SEC and in December 2019, the SEC issued a settled Order against Hertz former Controller Jatindar Kapur.