HOUSTON, Sept. 22, 2020 /PRNewswire/ -- RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced the settlement by the company, CEO Eric Langan, and former CFO Phillip Marshall of a civil administrative proceeding with the SEC and the conclusion of the previously disclosed SEC investigation.
The company, Mr. Langan and Mr. Marshall agreed, without admitting or denying the findings, to a cease-and-desist order regarding certain sections of the Securities Exchange Act of 1934 and certain rules promulgated thereunder. The SEC's administrative summary and order regarding its settlement with RCI, Mr. Langan and Mr. Marshall can be found at https://www.sec.gov/enforce/34-89935-s. As part of the settlement, the company agreed to a civil penalty in the amount of $400,000, and Mr. Langan and Mr. Marshall agreed to civil penalties in the amount of $200,000 and $35,000, respectively.
In accepting the settlement, the SEC considered remedial acts undertaken by RCI and cooperation afforded the Commission staff. Specifically, the company (i) engaged outside counsel to conduct an independent review; (ii) engaged a third-party consultant to assist in reviewing and revising its executive compensation process, policies and controls; and (iii) implemented new internal controls and compliance policies and procedures concerning perquisites, aircraft usage, expense reimbursement, travel, charitable contributions, related party transactions, and family employment.
Separately, the SEC also reached a settlement with Steve L. Jenkins, a former member of RCI's board of directors.
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SOURCE RCI Hospitality Holdings, Inc.