According to sources, the former CFO of Pier 1 will pay a $75,000 fine due to his involvement in concealing a $20 million investment loss. In a deal struck with the Securities and Exchange Commission, the retailer also agreed to stop violating financial reporting rules.
The case dates back to 1995, when it was alleged that CFO Robert G. Herndon conspired with money-manager S. Jay Goldinger to hide the funds from senior management, as well as external auditors.
The deal also calls for Herndon to never again serve as an officer or director of a public company, as well as forfeit his right to practice as an accountant before the SEC.
The company immediately resolved the loss upon learning of it, and recovered $11 million through legal action.