Paragon Technologies Provides Update on Audit Committee's Independent Investigation of Hesham M. Gad
Paragon Technologies (OTC PINK:PGNT) provided an update on its Audit Committee's independent investigation of terminated CEO Hesham M. Gad. The investigation, initiated in December 2024, initially focused on Gad's handling of company funds and fiduciary obligations but has expanded to include potential misstatements made to the company in 2010-2011.
The investigation revealed that Gad had pleaded guilty to a felony charge of 'theft by taking' in 2008 and was criminally indicted in 2011 for allegedly making false statements to governmental authorities. These events were not disclosed in Paragon's 2010 and 2011 Annual Reports, despite requirements to report such information.
The Audit Committee noted that Gad has not meaningfully cooperated with the investigation, failing to provide access to his devices and Electronically Stored Information. The committee remains committed to understanding potential misconduct and strengthening internal controls.
Paragon Technologies (OTC PINK:PGNT) ha fornito un aggiornamento sulla propria indagine indipendente condotta dal Comitato di Revisione in merito all'ex CEO Hesham M. Gad. L'indagine, avviata nel dicembre 2024, si è inizialmente concentrata sulla gestione dei fondi della società e degli obblighi fiduciari di Gad, ma si è ampliata per includere possibili dichiarazioni errate fatte alla società nel 2010-2011.
L'indagine ha rivelato che Gad si è dichiarato colpevole di un reato di 'furto per appropriazione' nel 2008 ed è stato incriminato nel 2011 per aver presumibilmente rilasciato dichiarazioni false alle autorità governative. Questi eventi non sono stati divulgati nei Rapporti Annuali di Paragon del 2010 e 2011, nonostante i requisiti di segnalazione di tali informazioni.
Il Comitato di Revisione ha osservato che Gad non ha collaborato in modo significativo all'indagine, non fornendo accesso ai suoi dispositivi e alle Informazioni Elettronicamente Conservate. Il comitato rimane impegnato a comprendere potenziali illeciti e a rafforzare i controlli interni.
Paragon Technologies (OTC PINK:PGNT) proporcionó una actualización sobre la investigación independiente de su Comité de Auditoría relacionada con el ex CEO Hesham M. Gad. La investigación, iniciada en diciembre de 2024, inicialmente se centró en la gestión de los fondos de la empresa y las obligaciones fiduciarias de Gad, pero se ha ampliado para incluir posibles declaraciones erróneas realizadas a la empresa en 2010-2011.
La investigación reveló que Gad se declaró culpable de un cargo penal de 'robo por apropiación' en 2008 y fue acusado criminalmente en 2011 por supuestamente hacer declaraciones falsas a las autoridades gubernamentales. Estos eventos no se divulgaron en los Informes Anuales de Paragon de 2010 y 2011, a pesar de los requisitos de informar tales información.
El Comité de Auditoría señaló que Gad no ha cooperado de manera significativa con la investigación, al no proporcionar acceso a sus dispositivos e Información Almacenada Electrónicamente. El comité sigue comprometido a comprender posibles irregularidades y a fortalecer los controles internos.
패러곤 테크놀로지스 (OTC PINK:PGNT)는 해임된 CEO 헤샴 M. 가드에 대한 감사 위원의 독립적인 조사 업데이트를 제공했습니다. 이 조사는 2024년 12월에 시작되었으며, 처음에는 가드의 회사 자금 관리 및 신탁 의무에 초점을 맞췄지만 2010-2011년에 회사에 제기된 잠재적인 허위 진술을 포함하도록 확대되었습니다.
조사 결과 가드는 2008년에 '의도적 절도' 범죄로 유죄를 인정했고, 2011년에 정부 당국에 허위 진술을 한 혐의로 형사 기소되었습니다. 이러한 사건은 그러한 정보를 보고할 의무가 있음에도 불구하고 패러곤의 2010 및 2011년도 연례 보고서에는 공개되지 않았습니다.
감사 위원회는 가드가 조사에 실질적으로 협조하지 않았으며, 그의 장치 및 전자적으로 저장된 정보에 대한 접근을 제공하지 않았다고 언급했습니다. 위원회는 잠재적인 위법 행위를 이해하고 내부 통제를 강화하기 위해 계속 노력하고 있습니다.
Paragon Technologies (OTC PINK:PGNT) a fourni une mise à jour concernant l'enquête indépendante de son Comité d'Audit sur l'ancien PDG Hesham M. Gad. L'enquête, lancée en décembre 2024, s'est d'abord concentrée sur la gestion des fonds de l'entreprise et des obligations fiduciaires de Gad, mais s'est élargie pour inclure d'éventuelles fausses déclarations faites à l'entreprise en 2010-2011.
L'enquête a révélé que Gad avait plaidé coupable d'une accusation criminelle de 'vol par appropriation' en 2008 et avait été inculpé pénalement en 2011 pour avoir prétendument fait de fausses déclarations aux autorités gouvernementales. Ces événements n'ont pas été divulgués dans les Rapports Annuels de Paragon de 2010 et 2011, malgré l'obligation de signaler de telles informations.
Le Comité d'Audit a noté que Gad n'a pas coopéré de manière significative à l'enquête, échouant à fournir un accès à ses appareils et aux Informations Électroniquement Stockées. Le comité reste déterminé à comprendre les comportements répréhensibles potentiels et à renforcer les contrôles internes.
Paragon Technologies (OTC PINK:PGNT) hat ein Update zu der unabhängigen Untersuchung des Prüfungsausschusses bezüglich des entlassenen CEO Hesham M. Gad gegeben. Die Untersuchung, die im Dezember 2024 eingeleitet wurde, konzentrierte sich zunächst auf Gads Umgang mit Unternehmensgeldern und treuhänderischen Verpflichtungen, wurde jedoch auf mögliche falsche Aussagen ausgeweitet, die 2010-2011 gegenüber dem Unternehmen gemacht wurden.
Die Untersuchung ergab, dass Gad sich 2008 schuldig bekannt hatte wegen des Verbrechens des 'Diebstahls durch Aneignung' und 2011 strafrechtlich angeklagt wurde, weil er angeblich falsche Aussagen gegenüber Regierungsbehörden gemacht hatte. Diese Ereignisse wurden in den Jahresberichten von Paragon 2010 und 2011 nicht offengelegt, trotz der Anforderungen, solche Informationen zu melden.
Der Prüfungsausschuss stellte fest, dass Gad nicht wesentlich mit der Untersuchung kooperiert hat, da er keinen Zugang zu seinen Geräten und elektronisch gespeicherten Informationen gewährt hat. Der Ausschuss bleibt verpflichtet, potenzielles Fehlverhalten zu verstehen und die internen Kontrollen zu stärken.
- Company demonstrating proactive governance through independent investigation
- Commitment to transparency and shareholder value protection through audit committee oversight
- Former CEO's potential mishandling of company funds under investigation
- Discovery of undisclosed criminal history of former CEO in early company reports
- Lack of cooperation from former CEO with ongoing investigation
- Potential weaknesses in internal controls that may have been exploited
EASTON, PA / ACCESS Newswire / February 4, 2025 / Paragon Technologies, Inc. (OTC PINK:PGNT), a diversified holding company, provided an update today regarding the ongoing independent investigation overseen by the Audit Committee of its Board of Directors into the conduct of Paragon's terminated Chief Executive Officer, Hesham M. Gad. This investigation, initiated and disclosed in December 2024, underscores the company's strong commitment to compliance, integrity in reporting and disclosures, and value creation for all shareholders.
Initially, the investigation focused on Mr. Gad's conduct concerning company funds and his compliance with fiduciary obligations to Paragon's shareholders. The investigation into those matters is continuing.
As the investigation progresses and new facts emerge, the scope has expanded to include potential misstatements made by Mr. Gad to the company in 2010 and 2011.
On May 8, 2008, Mr. Gad pled guilty to a felony charge of "theft by taking" for his deposit of funds belonging to a non-profit organization into his personal account (State of Georgia v. Sham Gad, Case No. 5608-CR-0830). Upon joining Paragon as a Director in 2010, Mr. Gad was required to report his guilty plea to the company for inclusion in its disclosures. However, the 2010 and 2011 Annual Reports do not contain this information and incorrectly state that none of Paragon's directors had been subject to a criminal conviction. Additionally, on August 9, 2011, Mr. Gad was criminally indicted for allegedly making false statements to governmental authorities (State of Georgia v. Hesham M. Gad, Case No. SU-11-CR-0622). This indictment was also not reflected in Paragon's 2011 Annual Report. Although Paragon subsequently disclosed Mr. Gad's 2008 guilty plea and the 2011 indictment, the Audit Committee is investigating whether Mr. Gad intentionally misled the company in his early years with Paragon.
The Audit Committee notes that despite Mr. Gad's counsel's apparent diligent efforts to communicate with the investigation team, to date Mr. Gad has failed to meaningfully cooperate with the investigation, including by not yet complying with the investigation team's requests that Mr. Gad make his devices and Electronically Stored Information available for collection and inspection.
The Audit Committee provides this update in the interest of transparency and remains fully committed to understanding the facts surrounding Mr. Gad's potential misconduct and addressing potential wrongdoing. This includes strengthening internal controls that Mr. Gad may have exploited, if any. The Audit Committee reiterates that the investigation is ongoing, and that a final report can be issued in due course.
About Paragon Technologies
Paragon Technologies, Inc. is a holding company owning subsidiaries that engage in diverse business activities, including material handling, distribution, real estate, and investments. For additional information please visit: www.pgntgroup.com.
Investor Relations Contact:
Alliance Advisors IR
ParagonIR@allianceadvisors.com
SOURCE: Paragon Technologies Inc.
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