Settlements

ST-461
Ignacio Cueto Plaza
Ignacio Cueto Plaza
United States
Securities and Exchange Commission
Argentina
2016
2/4
Unknown
Individual
Civil
Cease and Desist Order
Civil Penalty
$75,000
$0
$0
$75,000
$0
NA
Art.16
Art. 1, Art. 8
Falsification of books and records, Internal controls violations
No admission or denial of alleged offenses
No
According to the US Securities and Exchange Commission Administrative Summary, "An SEC investigation found that Ignacio Cueto Plaza, who was serving as president and chief operating officer at the time, authorized a sham consulting agreement and the company wired $1.15 million in payments to the consultant’s Virginia-based brokerage account. The unsigned agreement falsely stated that the consultant would undertake a study of existing air routes in Argentina. Cueto knew no such study would be performed and the consultant instead agreed to help settle the labor dispute, and Cueto also nderstood it was possible that the consultant would pass a portion of the payments along to union officials in Argentina. Cueto pproved the payments to get the unions to abandon their threats to enforce the single-function rule and to get them to accept a wage increase lower than the amount asked for in negotiations." (Source: US SEC Administrative Summary, "Airline Executive Settles FCPA Charges," February 4, 2016.)