Editor’s note: We have added details about what federal prosecutors have accused Neil Cole of doing.
Neil Cole, the founder and former CEO of Iconix Brand Group, has been charged by federal prosecutors in an alleged accounting fraud at the company, according to Bloomberg.
Iconix owns and licenses a wide range of brands including Mossimo, Joe Boxer, Op, Zoo York, London Fog, Starter, and Umbro.
Cole is accused of inflating company revenues by convincing a Hong Kong company to overpay for stakes in joint ventures with Iconix with the guarantee that they would be reimbursed through sham consulting and marketing fees, Bloomberg reported. The charges allege that Iconix inflated its revenue by $13 million over three joint venture agreements in 2013 and 2014.
Cole, 62, is charged with 10 criminal counts, including securities fraud, conspiracy and making false statements to the U.S. Securities and Exchange Commission.
Seth Horowitz, the ex-chief operating officer, has pleaded guilty to related charges and is cooperating with authorities.
Trading in Iconix was halted Thursday.
Cole stepped down as CEO of Iconix in 2015.
