SEC Obtains Final Judgments Against Former CEO and Former CFO of General Cable Corp. Operating Segment
Litigation Release No. 24407 / February 21, 2019
Securities and Exchange Commission v. Mathias Francisco Sandoval Herrera and Maria D. Cidre, Civil Action No. 1:17-cv-20301-JAL (S.D. Fla., filed Jan. 24, 2017)
On February 20, 2019, the Honorable Joan A. Lenard of the U.S. District Court for the Southern District of Florida entered final judgments on consent against Mathias Francisco Sandoval Herrera and Maria D. Cidre, the former Chief Executive Officer and former Chief Financial Officer, respectively, of the Rest of World operating segment of General Cable Corp.
The SEC's complaint, filed on January 24, 2017, alleged that Sandoval and Cidre learned in January 2012 of an inventory overstatement and related accounting errors at General Cable's subsidiary in Brazil. The complaint alleged that, over the course of 2012, the estimated overstatement grew to tens of millions of dollars. Instead of disclosing the overstatement pursuant to General Cable's policies and system of internal controls, the complaint alleges that Sandoval and Cidre concealed the errors by omitting them from required reports and making false certifications to executive management.
The final judgments enjoin Sandoval and Cidre from violating the books-and-records provisions of Section 13(b)(5) of the Securities Exchange Act of 1934 and Rules 13b2-1 and 13b2-2 thereunder, and from aiding and abetting violations of the reporting provisions of Section 13(a) and 13(b)(2)(A)-(B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, and 13a-13 thereunder. The final judgment against Cidre also enjoins her from violating the antifraud provision of Section 17(a)(3) of the Securities Act of 1933. Sandoval and Cidre agreed to settle the charges without admitting or denying the allegations, and to pay a civil penalty of $150,000, and $40,000, respectively. The SEC also notified the court that it would not seek a civil penalty or an officer and director bar against cooperating defendant Jose Antonio Miranda Gonzalez, who previously settled with the Commission in this matter.