Cavco Industries, Inc. today announced that the United States District Court for the District of Arizona approved the settlement of the Securities and Exchange Commission action against the Company. The action was based on securities trading in 2017 directed by Joseph Stegmayer, former chief executive officer, which resulted in an unrealized gain of approximately $265,000 for the Company. Without admitting or denying the findings of the consent judgment, the Company agreed to the imposition of an injunction against future violations of the antifraud and internal accounting control provisions of the Securities Exchange Act of 1934 and a monetary penalty of $1.5 million.
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The settlement resolves all claims in the action against the Company. Daniel Urness, its former chief financial officer, is the only remaining defendant in the ongoing action. Mr. Stegmayer settled the SEC claims against him last year.
“After working to resolve this matter for an extended period of time, we are very happy to have reached a settlement on reasonable terms,” said President and Chief Executive Officer Bill Boor.
