Chilean-based airline company Latam Airlines Group SA on Thursday said its chief executive consented to a cease-and-desist order from the U.S. Securities and Exchange Commission over the company's failure to properly record a payment to a consultant 10 years ago.

Latam Chief Executive Ignacio Cueto also agreed to pay a $75,000 penalty to the regulator, the company said in a brief statement. Mr. Cueto wasn't available for comment.

Latam said the cease-and-desist order concerned the company's failure to accurately record payments it made to a consultant in Argentina for work on labor issues in 2006 and 2007. It didn't provide other details.

Though Latam said the issue was an isolated matter and that Mr. Cueto agreed to remain in compliance with the firm's internal accounting controls. The company said it cooperated with the SEC's investigation and that it has strengthened its accounting controls since the incident took place.

"Latam Airlines Group and its senior executives maintain a strong commitment to complying with all laws and regulations in all countries where the company operates," the company said.

Latam is Latin America's largest airline company, with passenger flights to 24 countries. The firm's shares are traded in Santiago, the New York Stock Exchange and the Sã o Paulo Stock Exchange.

Write to Ryan Dube at ryan.dube@dowjones.com

(END) Dow Jones Newswires

February 04, 2016 20:45 ET (01:45 GMT)

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