SEC seeking $4 million in bonuses, stock sale payouts from former CSK Auto chief Jenkins

NEW YORK July 22, 2009; Dan Strumpf writing for the AP reportede that the Securities and Exchange Commission is seeking more than $4 million from the former CEO of auto parts retailer CSK Auto Corp., accusing him of profiting while the company allegedly defrauded shareholders.

The SEC filed a lawsuit in U.S. District Court for the District of Arizona demanding Maynard L. Jenkins returned the money -- which was paid out in bonuses and stock sales -- even though he is not facing fraud charges himself.

The lawsuit is the regulator's latest action against former personnel at Phoenix-based CSK Auto. The SEC has charged several former executives with fraud, accusing them of manipulating the company's earnings. In May, CSK reached an agreement with the SEC over allegations that it filed false financial statements for fiscal years 2002 through 2004.

John Spiegel, a Los Angeles-based lawyer representing Jenkins, said the SEC is "overreaching against an admittedly innocent person."

"The SEC admits in its complaint in this case against Mr. Jenkins that he is innocent," Speigel said in a statement. "The SEC does not and cannot allege that Mr. Jenkins has done anything wrong or had any knowledge of the accounting issues described in its complaint."

CSK was acquired by Springfield, Mo.-based O'Reilly Automotive Inc. in July 2008. An O'Reilly spokeswoman declined to comment.

The SEC said Jenkins received $2.1 million in bonuses and $2 million in company stock sales that should be reimbursed to CSK under a provision of the Sarbanes-Oxley Act.

The SEC is seeking the payments under the "clawback" provision of the anti-fraud law. It said the provision allows authorities to retrieve profits made by executives at companies that mislead investors, even if the executives themselves do not violate securities laws.