HF Foods Announces Settlement with SEC

Core Viewpoint - HF Foods Group Inc. has resolved a formal investigation by the SEC regarding allegations of securities law violations by the company and its former executives, allowing the company to focus on future business expansion and ethical operations [1][4]. Group 1: SEC Investigation and Settlement - The SEC's investigation concluded with the acceptance of the company's Offer of Settlement, which was influenced by the company's prompt remedial actions and cooperation during the investigation [2]. - The SEC filed charges against two former executives on June 3, 2024, leading to their agreement to pay civil fines and disgorgement, as well as being subject to officer and director bars [2]. - The company neither admitted nor denied the SEC's findings but consented to an administrative civil cease-and-desist order regarding violations of multiple sections of the Securities Act and Securities Exchange Act, resulting from misleading disclosures and fraudulent conduct by former executives [3]. Group 2: Financial Implications - As part of the settlement, the company agreed to pay a civil monetary penalty of $3.9 million [3]. Group 3: Company Overview - HF Foods Group Inc. is a leading distributor of food products to Asian restaurants in the U.S., focusing on fresh produce, frozen and dry food, and non-food products [6]. - The company aims to meet the growing demand for Asian American cuisine by leveraging its distribution network and relationships with suppliers in the U.S., South America, and China [6].