LIBERATED SYNDICATION INC. (OTCMKTS:LSYN) Files An 8-K Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On October 2, 2019, John Busshaus, Chief Financial Officer of Liberated Syndication Inc, a Nevada corporation (“Liberated Syndication” or the “Company”) resigned from such position with the Company, effective upon the entry of the order described below and related court approval. The Board of Directors of the Company accepted Mr. Busshaus’ resignation letter and appointed Mr. Gabriel Mosey as interim Chief Financial Officer, in each case effective upon such order having been entered. Pending such effective date, the Company has eliminated Mr. Busshaus’ responsibility for financial reporting and related functions and responsibilities that he performed as CFO. In his capacity as interim Chief Financial Officer, Mr. Mosey will succeed Mr. Busshaus as the principal financial officer and principal accounting officer of the Company.The Company has initiated a search for a permanent Chief Financial Officer. This transition did not arise from any issues involving Liberated Syndication’s financial results, business practices, internal controls or financial reporting procedures.
Mr. Mosey, age 35, has served as the Company’s Controller since May 2018 and was previously an auditor at PPG Industries, Inc. and Ernst & Young. Mr. Mosey earned his Bachelor of Accounting degree from Utah Valley University and a Master of Accounting degree from Duquesne University.
Item 7.01 Regulation FD Disclosure.
On September 30, 2019, the Securities and Exchange Commission (“SEC”) filed a complaint in the Southern District of New York regarding certain actions by Christopher Spencer and John Busshaus involving the Company’s previous parent company, FAB Universal Corp. (“FAB”). The Company understands that the SEC is in the process of filing settled charges arising out of the complaint for court approval and expects that public notice regarding such settlement will appear shortly on the SEC’s website.
According to the SEC’s complaint, between 2012 and 2013, Mr. Spencer and Mr. Busshaus the former Chief Executive Officer and former Chief Financial Officer of FAB, respectively, negligently used a series of misrepresentations about the capabilities and growth prospects of a central component of FAB’s business in China, namely FAB’s multi-media kiosk business. At the time, Mr. Spencer and Mr. Busshaus believed they were acting properly in receiving and reviewing information provided by FAB’s accounting and financial personnel located in China and relying upon this information prior to making these representations, and have accepted the SEC’s offer of settlement without admitting or denying the allegations or findings contained in the complaint. The settlement is not expected to prevent Mr. Spencer or Mr. Busshaus from serving as an officer or director of a public company, although Mr. Busshaus, who holds an inactive CPA license, has agreed to a suspension from appearing or practicing as an accountant before the SEC, for which he can apply for reinstatement in two years.The order suspending Mr. Busshaus from appearing or practicing as an accountant before the SEC is expected to be entered after the court enters judgment in this matter.
The information included in this Item 7.01 shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference into any filing made by the Company under the Exchange Act or Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
About LIBERATED SYNDICATION INC. (OTCMKTS:LSYN)
Liberated Syndication Inc. is a podcast service provider offering hosting and distribution tools. The Company offers basic plans, as well as advanced plans that include storage, advanced statistics and podcast applications. Its hosting plans include unlimited downloads, media hosting-audio and video, own Webpage for the show, an iTunes compatible rich site summary (RSS) feed for the podcast, HTML5 video and audio player, single click multiple destination publishing with OnPublish and Network Application Listing. Its advanced hosting plans also include custom mobile application offering, advanced statistics package and MyLibsyn subscription management service. Its LibsynPRO service is an enterprise solution for professional media producers and corporate customers. The Libsyn4 product offering is a podcast hosting and distribution service, which includes storage, bandwidth, RSS creation, distribution and statistics tracking.
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