• SEC Takes Unprecedented Action Under Section 304 of SOX
  • August 10, 2009
  • Law Firm: Torys LLP - New York Office
  • On July 22, the Securities and Exchange Commission (SEC) commenced an enforcement action against Maynard L. Jenkins, former chief executive officer of CSK Auto Corporation, under Section 304 of the Sarbanes-Oxley Act of 2002 (SOX) to recover more than $4 million that he had received in bonuses and stock sales profits while CSK was allegedly committing accounting fraud. This is the first action brought by the SEC seeking reimbursement under the "clawback" provision of Section 304 from an individual who is not alleged to have otherwise violated the U.S. securities laws. This action by the SEC may be a harbinger of the agency's renewed commitment to conducting a vigorous enforcement program.