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SEC defendant Scott agrees to pay $219,940 (U.S.)

2024-01-26 20:37 ET - Street Wire

Also Street Wire (U-SAEX) SAExploration Holdings Inc

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by Mike Caswell

Alberta resident Michael Scott has agreed to a $219,940 criminal forfeiture order as part of a case he faces in New York for the SAExploration Holdings Inc. fraud. (All figures are in U.S. dollars.) Prosecutors claim that he was part of a scheme in which SAExploration reported $100-million in non-existent revenue. After the company's true financial picture became public, SAExploration wound up in bankruptcy protection.

The penalty for Mr. Scott, 65, is contained in a proposed forfeiture order that prosecutors filed on Friday, Jan. 26, in federal court in New York. The order specifies that Mr. Scott has agreed to pay out the gains he realized from the scheme of $219,940. The order does not say if Mr. Scott will immediately pay the money, and it may even indicate the opposite. It states that, as a result of "acts and/or omissions of the Defendant," the money "cannot be located upon the exercise of due diligence."

Regardless of the amount that Mr. Scott ultimately pays, the forfeiture order forms just part of the case. He previously pleaded guilty to charges that include securities fraud and wire fraud, along with related conspiracy counts. He awaits sentencing, and could receive a jail term. In addition, Mr. Scott faces a related civil case from the U.S. Securities and Exchange Commission, in which he could be ordered to pay fines on top of whatever criminal penalties are imposed.

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