MDC Partners Tables SEC Settlement

Marcoms holding company MDC Partners has reached an agreement 'in principle' to pay the US Securities and Exchange Commission (SEC) $1.5m, to settle an investigation into expenses claimed by former Chairman and CEO Miles Nadal.

New York and Toronto-based MDC, which was founded by Nadal, operates a Consumer Insights Group offering data and analytics capabilities to other group companies, and has invested in a number of MR and analytics firms. These include language and communications research specialist Luntz Global, data analytics business kenna, and qualitative research firm and focus group facility Ecker & Associates.

Last year, Nadal left the company after being forced to repay nearly $12.5m, following the SEC investigation. The Commission had requested information about these payments between 2009 and 2015 - including medical expenses, travel and commuting costs, and Nadal's charitable expenses. According to the company's 2015 proxy statement, Nadal received $926k in company-paid expenses last year. Of that, $500k was for unspecified perks, and $91k was for his personal use of aircraft - including for travel between his homes in the Bahamas and West Palm Beach, Florida and the company's head office in New York. In 2014, the company also paid nearly $72k for Nadal's personal use of an MDC-owned apartment, when he was in New York; and $263k for legal fees incurred as part of his sale of 3.5 million MDC shares.

Announcing the agreement yesterday, the company confirmed that SEC commissioners must still approve the proposed framework agreement (under which, the company is not admitting liability), and therefore the terms are not final. Scott Kauffman, the company's Chairman and CEO, commented: 'We greatly appreciate that the Philadelphia Regional Office of the SEC recognized our high level of cooperation and the extensive internal investigation conducted by the company's Special Committee and outside counsel, as well as the self-initiated remedial measures implemented in connection with new policies and procedures'.

Web site: www.mdc-partners.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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