Midtown Office Landlord Paid Millions to CEO-Controlled Companies

Securities Enforcement Defense attorney Allison Kernisky was interviewed by Crain's New York Business about federal enforcement of laws concerning executive perk disclosures. Paramount Group recently revealed that more than $3 million in previously undisclosed payments went to companies owned by CEO Albert Behler, including an aviation company and his wife's wine business. Ms. Kernisky noted that securities regulations require the disclosure of executive perks worth more than $10,000 in a given year, sorted by amount and type. She also commented that under the second Trump Administration, the U.S. Securities and Exchange Commission (SEC) seems less likely to charge CEOs for failing to disclose perks, which contrasts the agency's enforcement approach under the Biden Administration.

"Under the current administration, it stands to reason that we would see the SEC bring fewer enforcement actions over purely technical violations like failure to disclose executive perks," she said, adding that possible exceptions could include situations in which an executive commits fraud.

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