On Feb. 2, 2021, the Securities and Exchange Commission (SEC) issued a cease-and-desist order settling charges against the former CEO and CFO of WageWorks Inc. (WageWorks, or the Company),[1] stemming from the Company’s restatement of financial results, in which the SEC invoked a rarely used provision of the Sarbanes-Oxley Act to obtain reimbursement of incentive-based compensation earned by the executives.

Section 304 of the Sarbanes-Oxley Act of 2002 (SOX 304) permits the SEC to order the disgorgement of bonuses and incentive-based compensation earned by the CEO and CFO in the year following the filing of any financial statement that the issuer is required to restate because of misconduct, and the reimbursement of those funds to the issuer.[2] The provision provides: READ MORE