SEC Order in Hudson Highland Suggests Tax Compliance May Become an Issue of Securities Law Compliance as Well

On Jan. 10, the Securities and Exchange Commission issued a cease-and-desist order against Hudson Highland Group, a publicly traded executive search firm, for its failure to disclose a $3.9 million sales and use tax liability to its shareholders. The order faulted the company for weaknesses in its accounting systems and imposed a $200,000 penalty for violations of U.S. securities law. In this interview, BNA talks with Lee A. Zoeller, of Reed Smith LLP about the SEC order and its implications for other publicly traded companies.