Paragon Self Reports Potential Violations Related to Former CEO Gad's Immigration and Work Authorization Status to U.S. Government Authorities

Rhea-AI Summary

Paragon Technologies (OTC:PGNT) has self-reported potential federal law violations to U.S. government authorities regarding former Chairman and CEO Hesham Gad's immigration and work authorization status. The company disclosed that it may have violated federal statutes by knowingly employing Gad as CEO of both Paragon and SI Systems when he lacked valid work authorization in the United States. The company has submitted detailed information about the circumstances to relevant federal agencies and committed to maintaining transparency with shareholders regarding any feedback, required disclosures, or potential penalties resulting from this matter.

Positive

• None.

Negative

• Company may face penalties and fines from federal agencies for immigration law violations
• Potential legal consequences for knowingly employing CEO without proper work authorization
• Risk of reputational damage due to compliance failures at the highest management level

EASTON, PA / ACCESS Newswire / May 9, 2025 / Paragon Technologies, Inc. (OTC PINK:PGNT), today announced that it has self-reported to the appropriate United States government agencies the potential violations of federal law related to former Chairman and CEO, Hesham Gad's, immigration and work authorization status.

As previously disclosed, Paragon believes it may have violated federal statues that preclude businesses from knowingly employing individuals who lack valid work authorization to be employed in the United States. Today, Paragon is submitting information to the appropriate agencies detailing the circumstances surrounding Mr. Gad having the company employ him as CEO, and as CEO of SI Systems, when he was aware that such employment was illegal.

Paragon Technologies is committed to transparency and will promptly inform its shareholders should it receive any feedback from the federal agencies that requires disclosure or additional input from Paragon, or that results in penalties or fines assessed against the company.

About Paragon Technologies

Paragon Technologies, Inc. is a holding company owning subsidiaries that engage in diverse business activities, including material handling, distribution, real estate, and investments. For additional information please visit: www.pgntgroup.com.

Investor Relations Contact:

Alliance Advisors IR
ParagonIR@allianceadvisors.com

SOURCE: Paragon Technologies Inc.

View the original press release on ACCESS Newswire

FAQ

What violations did Paragon Technologies (PGNT) self-report to U.S. authorities?

Paragon self-reported potential federal law violations related to former CEO Hesham Gad's immigration and work authorization status, specifically employing him as CEO when he lacked valid work authorization in the United States.

What are the potential consequences for Paragon Technologies after self-reporting immigration violations?

The company may face penalties and fines from federal agencies, though the specific consequences have not yet been determined. Paragon has committed to informing shareholders of any feedback or penalties from federal authorities.

Who was involved in the immigration violation at Paragon Technologies?

Former Chairman and CEO Hesham Gad was involved, as he allegedly worked as CEO of both Paragon and SI Systems while lacking proper work authorization in the United States.

When did Paragon Technologies (PGNT) disclose the immigration violations?

Paragon Technologies disclosed the immigration violations on May 9, 2025, when they announced the self-reporting to U.S. government authorities.