Smart Online has formed a special committee to look into a civil complaint filed against the firm and two former executives by the Securities and Exchange Commission, the company said in a filing with the SEC.
David Colburn, the interim chief executive officer and a board member, and C. James Meese, Jr., an independent director, were picked to form the committee.
The committee was formed after Micahel Nouri, a co-founder and former CEO, was arrested two weeks ago along with his brother Reeza Eric Nouri on federal charges of securities fraud and conspiracy. Four stock brokers also were arrested.
The committee was tasked to look into the SEC complaints and “cooperate with the U.S. Government” as well as “consider, negotiate and settle, if appropriate” the SEC complaint