Convicted Manufacturing Execs Ordered to Pay Penalties
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The U.S. Securities and Exchange Commission has announced final judgments against two former executives of an Evansville plastics manufacturer. The SEC says Kevin Kuhnash and Jason Jimerson are being ordered to pay more than $2 million in penalties and interest after being sentenced to prison earlier this year on charges of securities fraud and money laundering.
The pair was accused of concealing “critical defects” in their Lucent Polymers Inc. business when they were in the process of selling the company, which they ultimately did to a private equity firm for more than $64 million.
The firm later sold the Lucent to a publicly-traded company, which discovered the fraud and disclosed it to investors, causing a more than 20% drop in the company’s stock.
In March, Kuhnash was sentenced to three years in prison with one year of supervised release, while Jimerson received two years in prison with two yeas of supervised release. Both were ordered to pay a $10,000 fine.
In the final judgments entered by the U.S. District Court for the Southern District of Indiana, Kuhnash was ordered to pay disgorgement of $1.4 million with prejudgment interest of $422,319.
Jimerson was ordered to pay disgorgement of just under $650,000 with prejudgment interest of $182,724.