Question

For several years, CSK Auto, Inc., fraudulently reported inflated earnings. During this period, Maynard Jenkins was CEO. He was not involved in the fraud, however, and was never charged with a crime. Nonetheless, the SEC sought to claw back some of his earnings during this period. Is Jenkins financially responsible for the fraud that occurred on his watch, even though he did not participate? Should he be liable?

Answer 1

He should not be financially responsible, but he should be liable.

He was the Chief Executive Officer.

Step-by-step explanation:

Maynard Jenkins was the CEO at that time the fraud of inflated earnings was reported. Jenkins is not financially responsible for the fraud that occurred on his watch because he did not participate, however, he should be liable.