Corporate services company a1A says it will pay $1.1 billion to settle charges that it was misleading investors about its performance, which resulted in losses for investors.
In addition, the company will pay the IRS $1 million for “misleading” investors about the extent of its losses, the Justice Department said in a court filing Wednesday.
A1A’s chief executive, Brian L. Schaffner, also agreed to forfeit assets and pay a $4 million fine to the U.S. government.
The settlement comes as a result of the Justice Dept. investigation into whether the company misled investors in 2013 and 2014 about its business.
A federal court judge said last year that the company’s CEO misled investors about A1’s performance.
A 1A spokesperson did not immediately respond to a request for comment.
The company has denied wrongdoing.
It was also hit with charges in 2015 that it lied about its earnings for years after its 2015 bankruptcy filing.
The Justice Dept., in a complaint filed last year, accused the company of misleading investors by falsely claiming that it had sold the majority of its U.K.-based business.
The DOJ also said that A1 failed to disclose the “significant” losses that it sustained in 2015, when it lost more than $5 billion in revenue.
A2 Group, which runs banks and other financial services companies, also settled a similar case earlier this year.
The bank said it was paying $2.5 billion to resolve criminal charges that included “false statements, misstatements, and omissions.”