SEC accuses IDT founder of failing to file disclosures on time

The U.S. SEC has initiated and settled legal proceedings against Howard Jonas, the founder of communications and payments fintech company IDT Corporation. Jonas is said to have failed to promptly disclose his stock holdings in four companies, including IDT.

Details

On September 25, the SEC filed an administrative case against Howard Jonas, IDT Corporation’s founder and chairman. The company announced this on Monday, September 30. The SEC cited “issues related to the timeliness” of filings related to Jonas’s beneficial ownership in four companies, one of which is IDT. A settlement was reached whereby Jonas agreed to cease the alleged violations and pay a $90,000 fine without admitting or denying the findings or charges.

About IDT Corporation

Founded by Jonas in 1990, IDT Corporation operates three main businesses: National Retail Solutions, which sells point-of-sale (POS) systems; BOSS Money, a money transfer service; and net2phone, a provider of cloud-based communications services.

For the fiscal-2024 third quarter (ended April 30), IDT posted consolidated revenue of $299.6 million, flat compared to the same period the previous year. Meanwhile, net income fell almost 19% year over year to $5.6 million, which the company said was “primarily due to an increase in the effective income tax rate in the third quarter and to certain foreign currency transaction losses realized.” The full-year results for 2024 are scheduled to be released in October.

Jonas has a diverse background in business. Besides IDT, he has launched Jonas Media Group, a magazine publisher, and Genie Energy, an energy holding company. Notably, Genie has secured exclusive oil and gas exploration rights in the southern Golan Heights (Israel).

Stock performance

The SEC’s claims against Jonas have had little impact on IDT stock. It is up around 12% for the year to date and more than 37% over the last 12 months. As of Monday, September 30, IDT was trading at $38.17 per share. According to MarketWatch, the one analyst who covers the company recommends holding the stock.

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