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ARTICLE · 06 APRIL 2011

Securities Update - March 2011

Drinker Biddle & Reath LLP
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In January 2011, the Securities and Exchange Commission (SEC) charged NIC Inc., Jeffrey Fraser (the former Chief Executive Officer of NIC), Eric Bur (the former Chief Financial Officer of NIC), and Harry Herington (the former Chief Operating Officer and current Chief Executive Officer of NIC), with violations of the antifraud provisions of the Securities Act of 1933 and multiple violations of the Securities Exchange Act of 1934.

United StatesCorporate/Commercial Law
Troy Calkins
Troy Calkins
Neil Haimm
Neil Haimm
Walter Mostek, Jr.
Walter Mostek, Jr.
Ena Lebel
Ena Lebel
Peter Lively
Peter Lively
Matthew McDonald
Matthew McDonald
Kimberly Rubel
Kimberly Rubel
Peter Wolf
Peter Wolf

ENJOYING LIFE'S LITTLE PERKS: THE NIC INC. ENFORCEMENT ACTION

By Matthew M. McDonald and Peter J. Lively

In January 2011, the Securities and Exchange Commission (SEC) charged NIC Inc., Jeffrey Fraser (the former Chief Executive Officer of NIC), Eric Bur (the former Chief Financial Officer of NIC), and Harry Herington (the former Chief Operating Officer and current Chief Executive Officer of NIC), with violations of the antifraud provisions of the Securities Act of 1933 and multiple violations of the Securities Exchange Act of 1934. The charges are primarily based on the Commission's allegations that NIC repeatedly filed materially false and misleading proxy statements and annual reports that either omitted or materially understated a material portion of Fraser's overall compensation, particularly substantial perquisites that were paid to him by NIC.

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