The former chairman and chief executive of FTE Networks Inc. must pay $6.3 million in an SEC fraud enforcement action, which would be satisfied by paying $13.5 million already ordered as restitution in a parallel criminal case.
Michael Palleschi is liable for $4.3 million in disgorgement and nearly $2 million of prejudgment interest for his role in a scheme that involved improper accounting for expenses related to convertible notes the company issued to private lenders, Judge Sheri Polster Chappell said in the order approving a consent judgment Thursday.
The former executive also falsely recognized over $13 million in fraudulent revenue ...