He said in the emailed statement that he "could not be more excited about my new company."Zenefits may not be the last Silicon Valley unicorn to be chastised by the SEC.
The agency has also been investigating whether the embattled blood-testing startup Theranos made deceptive statements to investors, The Wall Street Journal reported last year.
Conrad, further, created and shared with employees a program to cheat on California insurance broker licensing requirements. The SEC now asserts that Zenefits and Conrad, when they sold shares to investors in 20, failed to adequately disclose their knowledge of these compliance lapses.
The company agreed to pay 0,000 to the SEC — a small penalty compared with the over half a billion dollars it has raised.
Conrad agreed to pay nearly 4,000, of which 0,000 is a penalty and 0,000 represents the disgorgement of ill-gotten gains.
"Zenefits and Conrad failed to fully disclose these facts to investors."Zenefits, the SEC noted, has since overhauled its compliance by implementing new controls, replacing top leadership, and requiring employees to complete training.
Conrad, for his part, has started a new company, Rippling, which stores worker information to help companies onboard new employees.