The Securities and Exchange Commission yesterday filed action against the Telex Corp. saying that the company may have violated securities laws that set standards for record-keeping and accounting. The action focused on transactions between the firm and former chief executive officer Roger M. Wheeler.
Wheeler was shot to death in an execution-style slaying almost a year ago. Most of his interest in the Tulsa firm has been sold by his estate.
In consenting to the order, the company neither admitted nor denied the SEC's allegations.
The SEC said that Wheeler had used Telex employes for legal, secretarial, bookkeeping and errand service for his own business interests.
Wheeler also had the firm pay "non-Telex travel expenses for himself and private employes, advertising costs for certain of his private companies" and other items that had nothing to do with Telex.
Telex, neither admitting nor denying the SEC's allegations, consented to a settlement that requires the company to follow specified audit procedures.
Telex said that an independent audit of transactions between Wheeler and the company showed that, "on balance," Telex received greater monetary benefits from Wheeler than the former CEO and his private companies had received from Telex. The SEC said Wheeler controlled the reimbusement process for his own benefit.