Nasdaq Closes Inquiry of Integral Systems
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Friday, August 14, 2009
Columbia-based satellite services company Integral Systems said Thursday that Nasdaq has closed its inquiry into the firm's former management, two weeks after the end of a similar investigation by the Securities and Exchange Commission.
At the center of both probes was Gary A. Prince, who was previously convicted on charges of securities fraud. According to the SEC, Prince worked for Integral in an executive capacity despite the conviction, which should have prohibited him from taking such a role. Prince left Integral in 2007.
The company reached a settlement with the SEC last month. The federal agency is now pursuing three former Integral executives in the matter. A civil fraud suit in the District of Columbia's federal court, filed by the SEC in July, now accuses Prince and two other former executives with illegally concealing Prince's role at the company for seven years.
Integral, which builds on-the-ground systems that monitor and control a satellite in orbit, said Nasdaq's decision "effectively concludes all outstanding matters related to the SEC's investigation of the company."
"For nearly three years, Integral Systems has worked closely, and in cooperation with, officials at the SEC and Nasdaq to bring these matters to a close," said the interim chief executive Paul G. Casner in a statement.
Earlier this month, Integral posted a $1.5 million loss for its most recently ended quarter, down from profit of over $5 million a year ago. The company blamed the global recession for its financial troubles. Some of Integral's satellite company customers are delaying contracts, while others have filed for bankruptcy. Integral has both public- and private-sector clients.
John B. Higginbotham, the company's chief executive, president and a member of the board of directors, resigned on Friday after leading Integral for a year. The firm did not give a reason for Higginbotham's departure.
The company's stock has been on the decline. Down from a 52-week high of $27 a year ago, Integral shares recently sunk below $7. On Thursday, they closed at $6.82, up 21 cents or 3.2 percent for the day.
