American Apparel Facing SEC Investigation

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American Apparel (NYSEMKT:APP) is facing an investigation by the Securities and Exchange Commission (SEC) over the departure of its CEO in 2013.

american-apparel-sec-appFormer American Apparel CEO Dov Charney was fired last year after allegedly misusing corporate funds and allowing an employee to post nude photos of a former female employee online. He denied the claims against him, but was still removed from the company by its board, reports The New York Times.

The SEC is conducting an investigation into Charney’s departure and American Apparel has announced that it intends to fully cooperate with it. It’s reported that the SEC is interested in Charney’s alleged misuse of company funds during his time as CEO, NYT notes.

Charney has been attempting to take his job back, but hasn’t been successful. He teamed up with a hedge fund increase his stake in APP stock 43%, but was only offered an advisory role. He claims he was double crossed by the hedge fund, reports Bloomberg.

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