Drake, the chief financial officer of a public company called BigCo, becomes aware of a potential fraud.

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Drake, the chief financial officer of a public company called BigCo, becomes aware of a potential fraud. Instead of reporting it, he destroys the relevant documents. One year later, the SEC launches an investigation into insider trading at BigCo and the document destruction is uncovered. If Drake is charged with destroying the documents, who prevails?

a. Drake, because the documents were destroyed prior to the SEC investigation.

b. Drake, because he is an insider and had the right to destroy the documents.

c. The government, because Drake would have to have certified the financial statements.

d. The government, because under the SOX Act destroying documents, even prior to the investigation, triggers culpability.

e. A and B

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Business Law And Strategy

ISBN: 9780077614683

1st Edition

Authors: Sean Melvin, David Orozco, F E Guerra Pujol

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