The founder of MDC Partners, the Canadian advertising and marketing group, has quit his role as chairman and chief executive of the troubled firm after being hit by a $12.5m fine following a number of damaging disclosure made in the course of an investigation by the US Securities & Exchange Commission.
Miles Nadal had previously reimbursed $8.6m to the company to reimburse it for expenses, medical costs and travel receipts incurred over a six year period in which receipts were record keeping was incomplete.
In addition, Nadal is also on the hook for an extra $1.88m in expenses on top of these which were only recently identified in addition to being asked to repay $10.58m in retention amounts received between 2012 and 2015.
In a statement Nadal, who retains an 11.3 per cent stake in the business, said: “I’m gratified knowing that after 35 years, I am leaving the company in a strong position, with brilliant partners, exceptional talent, dedicated employees, wonderful clients, a strong shareholder base, and an incredible culture and reputation as ‘The Place Where Great Talent Lives’. I have every confidence that the company’s deep leadership team will build on this strong foundation in the years ahead.”
Following Nadal’s departure Scott Kauffman, MDC’s presiding director, has been named as its new chairman and CEO.