Zenefits, Co-Founder To Pay SEC $1M Over Misled Investors

By Dave Simpson (October 26, 2017, 10:41 PM EDT) -- Zenefits, a startup aimed at managing companies' employee health insurance plans, and one of its co-founders will pay almost $1 million in fines to the U.S. Securities and Exchange Commission in a settlement, announced Thursday, over allegations that it withheld information from its shareholders.

Zenefits FTW Insurance Services will pay $450,000 while co-founder Parker Conrad will shell out almost $534,000 to end claims that it failed to disclose to investors that it allowed clients to sell health insurance without proper licensing, according to the SEC.

Zenefits' software, or "macro," allowed users to complete life or health insurance license courses in less...

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