Aeropostale Says SEC Issues Probe Order
New York City Aeropostale Inc. said Wednesday the Securities and Exchange Commission issued a formal order of investigation related to the termination in 2006 of its former executive VP and chief merchandising officer.
The specialty apparel retailer disclosed in a filing it was informed on Tuesday that the SEC is conducting a nonpublic, fact-finding inquiry into the activities of the executive, Christopher L. Finazzo.
Aeropostale disclosed in a filing on Nov. 8, 2006 it terminated Finazzo for breaching its ethics policy.
According to the 2006 filing, Aeropostale said the termination was related to an investigation that showed Finazzo “had concealed personal ownership interests in, and served as an officer of, entities affiliated with one of the company’s largest vendors, South Bay Apparel, Inc.”
Aeropostale also said in the 2006 filing that the activities and their concealment comprised a conflict of interest that breached its business ethics code and violated Finazzo’s employment agreement.