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Zenefits settles with SEC over charges it misled investors

The fines pale in comparison to the $11 million in penalties that Zenefits has agreed to pay in at least 40 states.

By Eric Newcomer | Updated on October 27, 2017
Zenefits will pay $450,000, and Parker Conrad, the co-founder and ex-CEO, will pay about $534,000. (Photo by Winni Wintermeyer.)

The U.S. Securities and Exchange Commission settled with Zenefits and its former chief executive officer over charges the company misled investors by failing to disclose employees were selling insurance without a license.

Zenefits, a venture-backed broker of health insurance to businesses, will pay $450,000, and Parker Conrad, the co-founder and ex-CEO, will pay about $534,000. The SEC said Zenefits, under Conrad’s leadership, sold insurance in states without the appropriate licenses and that Conrad had created a software tool to help skirt the time requirements for legally mandated pre-licensing training in California. Neither the company nor Conrad admitted wrongdoing in the settlement.

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