The U.S. Securities and Exchange Commission (SEC) has recently taken action against former executives of telecommunications company Pareteum. In an official statement, the SEC announced that it has charged the former chief financial officer, Edward O’Donnell, and the former chief commercial officer, Victor Bozzo, with accounting and disclosure fraud. The charges stem from their involvement in fraudulent practices related to revenue recognition. Pareteum had previously filed for Chapter 11 bankruptcy protection in May 2022.
According to the SEC, O’Donnell and Bozzo were found to have engaged in deceptive revenue recognition practices during their time at Pareteum. These practices involved improperly recognizing revenue and providing misleading information to investors and financial analysts. Consequently, the charges have been brought against the former executives for their alleged involvement in these fraudulent activities.
Pareteum, the telecommunications firm at the center of this case, filed for Chapter 11 protection earlier this year. This filing suggests financial distress for the company, and the charges brought against O’Donnell and Bozzo further deepen the challenges faced by Pareteum. The SEC’s actions demonstrate its commitment to enforcing accounting and disclosure standards, ensuring accountability for executives involved in fraudulent practices.