SEC Charges Hurricane Restoration Company and Executives in Post-Katrina Accounting Fraud

December 19th, 2009
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The SEC has charged Home Solutions for America, Inc., a hurricane restoration company based in Dallas and New Orleans, and seven of its executives for “lying about non-existent business deals in the wake of Hurricane Katrina, and fraudulently inflating the company’s stock price.” After inflating the stock, former CEO Frank Fradella, one of the individuals charged in the case, then sold almost $7 million in company stock at the inflated price.

The Chief Financial Officer of Home Solutions Jeff Mattich and director Brian Marshall have also been charged. The SEC claims that the executives acted to “mislead the public about the company’s true financial condition.” Four other employees who have agreed to settle are former CFO and COO Rick O’Brien, Stephen Gingrich, Thomas Davis, and Jeff Craft.
Related Article Tags: Hedge Fund Fraud and Ponzi Scheme News

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