A U.S District Court in Arizona has approved a $1.5 million settlement of the Securities and Exchange Commission action against Cavco Industries.
The SEC claim was related to 2017 trading directed by former CEO Joseph Stegmayer that resulted in “an unrealized gain of approximately $265,000 for the company”.
In a release from Cavco, the company stated the settlement comes without admitting or denying the findings of the consent judgment. Cavco agrees to an injunction against future violations of the antifraud and internal accounting control provisions of the Securities Exchange Act of 1934, as well as the $1.5 million penalty.
“The settlement resolves all claims in the action against the company. Daniel Urness, its former chief financial officer, is the only remaining defendant in the ongoing action,” the release stated. “Mr. Stegmayer settled the SEC claims against him last year.”
Bill Boor is the president and CEO of Cavco
“After working to resolve this matter for an extended period of time, we are very happy to have reached a settlement on reasonable terms,” Boor said.
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