UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23980 / November 8, 2017
Securities and Exchange Commission v. Gavin Campion, No. 16-CV-08940 (AJN) (S.D.N.Y. filed Nov. 17, 2016).
Company President Barred for Accounting Fraud
The Securities and Exchange Commission announced that it obtained a final judgment on consent today against Gavin Campion, the former president of KIT Digital, Inc., barring him from serving as an officer or director of any public company. Campion had been charged with securities fraud, for his role in an accounting scheme by which KIT Digital inflated its publicly reported financial results by improperly recognizing $25 million in false revenue from sham license agreements.
The consent judgment also permanently enjoins Campion from violating Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 and Rules 10b-5, and 13b2-1 promulgated thereunder, and from aiding and abetting violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-11, and 13a-13 promulgated thereunder.
Campion has pleaded guilty to securities fraud and conspiracy to commit securities fraud in a parallel criminal action based on substantially the same facts underlying the Commission's complaint.