In a significant legal development, Neil Cole, the founder of Iconix Brand Group Inc, has been found guilty of securities fraud by a Manhattan jury. This verdict follows a previous trial where the jury failed to reach a decision just over a year ago.
The prosecution alleged that Cole, aged 65, artificially inflated Iconix’s revenue during 2013 and 2014 through joint venture agreements with the global supply chain company Li & Fung Ltd, based in Hong Kong.
In addition to the securities fraud charges, Cole, who formerly served as Iconix’s CEO, has also been convicted of submitting false filings to the SEC and improperly influencing audit processes, as stated in an announcement by U.S. Attorney Damian Williams.
This latest verdict is a noteworthy development after a prior jury acquitted Cole on two counts of conspiracy but failed to reach a verdict on these charges.
Williams emphasized the commitment to seeking justice, stating, «Wall Street should know that we will not be deterred from pursuing justice in challenging cases.»
In response to the verdict, Cole’s legal team, comprising David Markus and Sean Hecker, expressed their disappointment while noting that significant grounds for appeal exist.
During the trial, U.S. District Judge Edgardo Ramos denied Cole’s request to dismiss an alternate juror, with the specific reasons for this request not disclosed in court documents.
The charges against Cole were initially filed in December 2019, accusing him of inflating joint venture deals and later agreeing to reimburse the partner company through fictitious consulting or marketing fees.
In 2019, Iconix settled with the SEC for $5.5 million over alleged accounting violations, without admitting or denying the allegations.
Last year, Iconix was taken private by Lancer Capital.
This case is officially listed as United States v. Cole, U.S. District Court for the Southern District of New York, No. 19-cr-00869.
