CFO Faked Books, Raised $37 MILLION!

SEC v. Nihat Cardak — U.S. Securities and Exchange Commission Litigation Release No. 26674, dated October 19, 2026.

The SEC charged Nihat Cardak, former CFO of GigaMedia Access Corporation, with defrauding investors. Between March 2018 and August 2019, Cardak and the former CEO allegedly raised over $37 million by misrepresenting the company's financial health. Cardak agreed to a settlement that includes disgorgement and interest, which will be satisfied by restitution from a parallel criminal case.

In Plain English

Imagine a company's CFO and CEO told people their company was doing great, when it actually wasn't. They raised a lot of money from people who believed them, but the company was in bad shape. Now, the CFO has agreed to pay back some of the money and interest, which will be handled through a separate criminal case.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Misrepresenting Financial Health Between March 2018 and August 2019, Nihat Cardak, the former CFO of GigaMedia Access Corporation, and the company's former CEO allegedly raised over $37 million from investors. They achieved this by repeatedly misrepresenting the company's financial condition to potential investors.
2. Raising Funds Under False Pretenses The defendants solicited investments by presenting a false picture of GigaMedia Access Corporation's financial status. This involved making untrue statements about the company's performance and prospects to induce people to invest their money.
3. SEC Files Enforcement Action On October 20, 2021, the Securities and Exchange Commission filed a civil enforcement action in the United States District Court for the Southern District of New York. The complaint named Nihat Cardak as a defendant, along with others.
4. CFO Consents to Judgment On October 16, 2026, Nihat Cardak consented to the entry of a final judgment. This judgment, subject to court approval, would permanently bar him from violating securities laws and order him to pay disgorgement and prejudgment interest.
5. Settlement Tied to Criminal Case The final judgment against Cardak orders him liable for disgorgement of $210,400 with prejudgment interest of $17,231.02. These amounts are deemed satisfied by the restitution ordered against him in a parallel criminal case, United States v. Nihat Cardak.

The Enforcement Action

On October 16, 2026, the U.S. Securities and Exchange Commission filed a consent and proposed final judgment as to Nihat Cardak, former CFO of GigaMedia Access Corporation (Giga), a private software company, in the SEC’s civil enforcement action against him. The SEC’s complaint, filed on October 20, 2021 in United States District Court for the Southern District of New York, alleged that, between March 2018 and August 2019, Cardak and the former CEO of Giga raised more than $37 million from investors while repeatedly misrepresenting the company’s financial condition. Cardak consented to the entry of a final judgment, subject to court approval, that would permanently enjoin him from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; and order him liable for disgorgement in the amount of $210,400 with prejudgment interest of $17,231.02, which amounts shall be deemed satisfied by the order of restitution entered against him in a parallel criminal case, United States v. Nihat Cardak, No. 21 CR 616 (PGG) (SDNY). The SEC’s litigation was conducted by Melissa Armstrong, David Nasse, and Kristen Warden, with the assistance of Ashley Dolan Barrachina, of the SEC’s Home Office.

Original SEC litigation release ↗ · Browse all cases