"an order enjoining him from future violations of US securities law. "
This is an odd penalty. It implies that normally it's OK ton violate US securities law.
An investor in an IT biz has coughed up $456,000 after America's financial watchdog accused him of looking the other way while executives at the consultancy he backed allegedly embezzled millions of dollars. Late last week, Bhusan Dandawate was charged [PDF] by the SEC with allegedly aiding and abetting fraud – after he was …
@Doctor Syntax, Actually this is a form of probation. If he violates these terms he gets nailed for again and the second time they will not so nice. As this is a binding agreement between him and the ferals with some real teeth on the feral side. The teeth kick in if he is charged not when he is convicted; in some ways he loses the benefit of doubt as a known violator.
It's not clear how much money was actually availble -- perhaps the 122K was all of it.
Management was inflating their turnover, and hence their stock prices, by stealing money from the company, then using it to pay the company for false services, then stealing the money not actually spent on mythical product and services, then paying it in again...
I'd have to read more to find out if the 4M was actual money, or just the same money over and over again.
SEC levies fines but the DOJ charge him and if convicted put him away for a spell in Club Fed. Because he is a secondary figure the DOJ may not go after him for an all expense paid vacation.
Also, note the SEC has barred him from taking certain very high paying positions in any publicly traded company in the US for life. While that may not seem severe, it really crimps his style as he will have a hard time getting a job that pays anything near what these positions will pay.