RESEARCH TRIANGLE PARK – Smart Online has reached a settlement with the Securities and Exchange Commission after an investigation into violation of federal securities laws.
The company’s chief executive officer, a brother and four stock brokers recently were arrested and charged with securities violations. Michael Nouri, the CEO, resigned from both the board and his CEO position, on the day he was arrested.
While the legal case against the six individuals continues, the SEC investigation into Smart Online was settled with what the company called an “entry of a final judgment in a New York federal court.
Smart Online’s settlement did not require the company to admit or deny the allegations in an SEC complaint. The settlement also “permanently enjoins” any Smart Online from violation securities law in the future.
Nouri was arrested on September 11.
“I am pleased that the SEC has worked with us to settle this matter so quickly so that we can focus on our operations,” said David Colburn, a Smart Online board member who was named interim chief executive officer following Nouri’s arrest.
“We felt that the settlement, which does not impose any fine or other monetary penalty against the Company, was in our stockholders’ best interests to avoid the cost and distraction of litigation,” he added. “We have provided our full cooperation to the SEC and U.S. Attorney and will continue to offer any assistance requested by them in connection with the civil and criminal complaints pending against Michael and Eric Nouri.”