Published: July 29, 3:55 p.m.
Kenneth E. Compton, president and chief executive officer of Advance America of Spartanburg, is under investigation by the Securities and Exchange Commission for alleged insider trading in company securities, the company said.
According to an SEC filing Wednesday, the company said it had been informed by the staff of the SEC that Compton “and certain other individuals who are not officers, director or employees of the company“received notices of the investigation.
The company said it “understands that the staff intends to recommend that the SEC file a civil injunction action” against Compton in connection with “alleged insider trading involving approximately $20,000 in losses avoided by third parties selling company stock during 2007.”
“Mr. Compton has denied making any improper trades or engaging in any wrongdoing or other improper activity,” Advance America said.
The company also said it “believes that it is not a subject of this investigation.”
Compton has served as president and CEO since August 2005 and a director since December 2005. Previously, he was president of Global Automotive Group of Milliken &Co.
Advance America, Cash Advance Centers, Inc. is the nation’s largest provider of short-term loans in advance of the payday of borrowers. It has about 2,800 centers in 33 states under Advance America and National Cash Advance brands. Its shares are traded on the New York Stock Exchange.