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.
Media & Investor Contacts
Gary Fishman and Steven Anreder at 212-532-3232 or
gary.fishman@anreder.com and steven.anreder@anreder.com
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SOURCE RCI Hospitality Holdings, Inc.