Printing Company Executives Agree to Pay $75K in Fines
FAIRPORT, NY—A pair of executives with ImageXpres Corp. have agreed to pay $75,000 in fines to settle financial fraud allegations brought by the U.S. Securities and Exchange Commission (SEC), the Rochester Democrat and Chronicle reported.
John and Kevin Zankowsi, the executives, were sued by the SEC late last month on allegations that the financial performance of the company had been "hugely overstated" to investors between 2009 and 2011, the newspaper said.
ImageXpres allegedly reported revenue growth rates in excess of 300 percent for some products, the SEC complaint contends, in spite of "the absence of virtually any bona fide sales."
The company is essentially dormant now with little or no capital, the newspaper said, citing the complaint.
John Zankowski, the CEO and father to CFO Kevin Zankowski, has agreed to pay a $50,000 fine. Kevin Zankowski will pay a $25,000 fine. As part of the agreement, neither man has admitted guilt. However, they have agreed to never serve as officers or directors of any publicly traded firm.