ADMINISTRATIVE PROCEEDING
File No. 3-20676

December 13, 2021 - The Securities and Exchange Commission today announced settled charges against WEX Inc. for violating the reporting, books and records, and internal accounting control provisions of the federal securities laws. WEX is based in Portland, Maine, and describes itself as a financial technology service provider. The SEC's order found that WEX's correction of accounting errors at its Brazilian subsidiary (WEX Brazil) resulted in WEX's net income under U.S. Generally Accepted Accounting Principles (GAAP) being reduced by 61.2% in the fiscal year 2016. These accounting errors were the result of WEX's insufficient internal accounting controls. WEX has agreed to pay a civil penalty of $350,000 to settle the action.

According to the SEC's order, in 2016 and 2017, WEX's independent auditor found significant deficiencies in WEX's Internal Control Over Financial Reporting (ICFR) in connection with accounting errors at WEX Brazil. The order finds that additional accounting issues arose during the close of WEX's 2018 fiscal year. Specifically, according to the order, there were errors in WEX Brazil's financial statements back to fiscal year 2013 totaling approximately $85.5 million. The order finds that this amount included about $8 million in suspected theft or unauthorized transactions by former WEX Brazil employees. According to the order, WEX management concluded that the errors at WEX Brazil were the result of material weaknesses in the company's ICFR.

The SEC's order finds that WEX violated the reporting, internal controls, and books and records provisions of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934 and Rules 13a-1, 13a-11, and 13a-13 thereunder. Without admitting or denying the findings, WEX has agreed to cease and desist from committing or causing any future violations of these provisions and to pay a civil penalty of $350,000.

The SEC's investigation was conducted by Kerry Dakin, Ryan Murphy, and Celia Moore.