SAP CTO under investigation for harassment | SEC charges Kubient executives for fraud | Strauss Feeds faces OSHA penalties over dust hazards

In today’s Portfolio Intelligence Daily:?

• SAP CTO under investigation for harassment
• SEC charges Kubient executives for fraud
• Strauss Feeds faces $161K OSHA penalties over dust hazards

Our analyst team curates these summaries from Auquan’s Intelligence Engine, which uses generative AI and retrieval augmented generation (RAG) to uncover material non-financial insights at scale to support deal sourcing, due diligence, risk monitoring, and compliance.

Industry trends:

• The magic of RAG is in the retrieval (InfoWorld) — Retrieval-augmented generation (RAG) and AI agents are transforming how AI can automate knowledge work in the enterprise.
• Tackling Information Overload in the Age of AI [private credit] (TDWI Upside)
• Why AI is finally catching up with financial services (Maddyness)

SAP CTO under investigation for harassment

SAP confirmed that its outgoing Chief Technology Officer (CTO), Jürgen Müller, is under investigation by German prosecutors for alleged sexual harassment.?

• Müller agreed to step down from his role by September 30, admitting his behavior was inappropriate and apologizing for being inconsiderate.
• SAP has not provided specific details of the incident, but Müller is the subject of an early-stage investigation by the Heidelberg Public Prosecutor’s Office and Mannheim Police Headquarters.
• Prosecutors stressed the uncertainty about sufficient evidence for charges and emphasized that Müller should be presumed innocent until proven guilty.
• SAP’s CEO, Christian Klein, will take over most of Müller's responsibilities, while SAP's Global Security & Cloud Compliance team will shift to the Customer Services & Delivery Board under Thomas Saueressig.

Select timeline

• Sep 17, 2024 | Prosecutors confirm probe into SAP CTO amid allegations of sexual harassment (The Register)
• Sep 13, 2024 | German Prosecutors Open Harassment Probe Into SAP’s Müller (Bloomberg)
• Sep 03, 2024 | SAP CTO to leave company over ‘inappropriate’ conduct (Tech Central)

SEC charges Kubient executives for fraud

The SEC charged Kubient's ex-CEO Paul Roberts, ex-CFO Joshua Weiss, and Audit Committee Chair Grainne Coen with accounting fraud.

• The fraudulent revenue was based on false reports claiming Kubient’s AI software had been successfully tested to detect fraud in digital advertising auctions.
• This fabricated revenue made up nearly all of the company’s income ahead of its August 2020 IPO, allowing Kubient to raise $33 million in two public stock offerings.
• Despite knowing the tests hadn’t been performed, Weiss and Coen continued the scheme without correcting the false information, misleading investors further.
• The SEC is seeking penalties, including injunctions and officer-and-director bars, against all three executives for their role in the fraudulent activity.

Select timeline

• Sep 17, 2024 | SEC charges Kubient CEO, CFO with accounting fraud, misleading investors (CFO DIVE)
• Sep 17, 2024 | SEC charges tech execs with $1.3M fraud, lying to auditors (Accounting Today)
• Sep 16, 2024 | SEC Charges Former Chairman and CEO of Tech Co. Kubient With Fraud and Lying to Auditors (SEC)

Strauss Feeds faces OSHA penalties over dust hazards

OSHA proposed $161,332 in penalties for Strauss Feeds LLC in Watertown, Wisconsin, due to 24 violations related to dust hazards.

• The violations include 19 serious and 5 other-than-serious, focusing on risks of fire, explosion, and respiratory issues from combustible and airborne dust.
• An inspection in February 2024 revealed inadequate dust control measures and a lack of written respiratory protection programs, medical evaluations, and fit-testing.
• OSHA found insufficient housekeeping practices and a failure to assess or mitigate dust hazards effectively.
• Other issues included unsafe walking surfaces, fall risks, and improper use of industrial trucks and forklifts in areas with combustible dust.

Select timeline

• Sep 16, 2024 | Wisconsin Animal Feed Plant Faces $161,332 in OSHA Penalties for Dust Hazards (OH&S)
• Sep 16, 2024 | Animal food manufacturer fined $161K for exposing workers to airborne dust hazards (Plant Services)
• Sep 16, 2024 | OSHA: Wisconsin Animal Food Plant Faces $166K Fine for 24 Violations (Safety News Alert)

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