diff --git a/raw/aaer/2000/AAER-1214.txt b/raw/aaer/2000/AAER-1214.txt
new file mode 100644
index 0000000000000000000000000000000000000000..5312e2d653bc474cbfc75b52787e13738c5d97c7
--- /dev/null
+++ b/raw/aaer/2000/AAER-1214.txt
@@ -0,0 +1,1478 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Model Imperial, Inc. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/360126","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Model Imperial, Inc.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Model Imperial, Inc.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+ 
+Securities Exchange Act of 1934 
+Release No.  42316 / January 5, 2000
+  
+Accounting and Auditing Enforcement Release No. 1214
+  
+Administrative Proceeding  
+File No.   3-10043
+  
+
+
+
+    ____________________________________    
+   In the Matter of    :  
+       :ORDER MAKING FINDINGS AND 
+   MODEL IMPERIAL, INC.,    : REVOKING REGISTRATION 
+       : PURSUANT TO SECTION 12(j) OF 
+    Respondent    : THE SECURITIES EXCHANGE 
+    ____________________________________    : ACT OF 1934 
+   
+On September 28, 1999, the Commission instituted public administrative proceedings against Model Imperial, Inc. ("Model Imperial"), pursuant to Section 12(j) of the Securities Exchange Act of 1934 (15 U.S.C. § 78l(j))("Exchange Act").  On September 28, 1999, the Order Instituting Public Proceedings and Notice of Hearing Pursuant to Section 12(j) of the Exchange Act of 1934 was served on the Respondent.
+  
+Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings set forth in the Order, except as to the Commission's finding of jurisdiction over Model Imperial and the subject matter of these proceedings, which are admitted, Model Imperial consents to the issuance of the Order by the Commission which finds that:
+  
+
+ I. Facts 
+  
+A.   7Model Imperial is a Florida corporation whose common stock is registered with the Commission pursuant to Section 12(g) of the Securities Exchange Act of 1934 (15 U.S.C. § 78l (g)) (the "Old Common Stock").
+   
+B. On July 18, 1996, Model Imperial entered a voluntary proceeding for reorganization under Chapter 11 of the United States Bankruptcy Code in the Southern District of Florida (the "Bankruptcy Court") (Case Nos. 96-32922-BKC-PGH through 96-32929-BKC-
+PGH).  On September 2, 1997, the Bankruptcy Court entered an Amended Order (the "Confirmation Order") confirming Model Imperial's Jointly Proposed Consolidated Plan of Reorganization, as Amended (the "Plan").  On July 14, 1998, the Bankruptcy Court  entered an order modifying the Confirmation Order (the "Modification Order").  Pursuant  to the Plan as modified by the Modification Order, a privately-held company, Quality King, Inc. ("Quality King"), contributed funds pursuant to an agreement with Model Imperial's secured and unsecured creditors in exchange for 100 percent of newly issued Model Imperial common stock (the "New Common Stock").  The New Common Stock was issued to Quality King pursuant to the Modification Order under Section 4(2) of the Securities Act of 1933 and without registration in accordance with 11 U.S.C. § 1145(a)(1)(A).
+  
+C. Upon the issuance of the New Common Stock to Quality King, the Old Common Stock was canceled, and all obligations evidenced thereby were discharged and fully satisfied by confirmation of the Plan, as modified, and the distributions made to the holders of the Old Common Stock pursuant to the Plan, as modified. 	
+  
+D. Prior to the acquisition by Quality King and the issuance of its New Common Stock, Model Imperial failed to comply with Section 13(a) of the Exchange Act and Exchange Act Rules 13a-1 and 13a-13 in that it has not filed annual reports on Form 10-K and quarterly reports on Form 10-Q for any period subsequent to its quarter ended September 30, 1995. 
+  
+E. Prior to the acquisition by Quality King, Model Imperial failed to comply with Section 13(a) of the Exchange Act and Rules 13a-1, 13a-13 and 12b-20 by including in its annual report on Form 10-K for the year ended December 31, 1994 and quarterly reports on Form 10-Q for the first three quarters of the years ended December 31, 1994 and December 31, 1995, financial statements that failed to conform with Generally Accepted Accounting Principles (as required by Regulation S-X) in that they materially overstated the value of Model Imperial's revenues and gross profit.
+  
+ II. Findings 
+  
+In view of the foregoing, the Commission finds that it is necessary and appropriate for the protection of investors that the registration of Model Imperial's common stock be revoked pursuant to Section 12(j) of the Securities Exchange Act of 1934 (15 U.S.C. §78l (j)).
+
+
+  
+
+
+
+ III. Order 
+  
+Accordingly,  it is hereby ordered , pursuant to Section 12(j) of the Securities Exchange Act of 1934 (15 U.S.C. §78l (j)) that the registration pursuant to Section 12(g) of the Securities Exchange Act of 1934 (15 U.S.C. §78l (g)) of Model Imperial's common stock be, and hereby is, revoked.
+
+  
+For the Commission, by its Secretary, pursuant to delegated authority.
+
+  Jonathan G. Katz
+ Secretary
+
+
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1215.txt b/raw/aaer/2000/AAER-1215.txt
new file mode 100644
index 0000000000000000000000000000000000000000..75068d39ce4d647f208d34a3d32184692b1f8a7d
--- /dev/null
+++ b/raw/aaer/2000/AAER-1215.txt
@@ -0,0 +1,1823 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Informix Corporation 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/360121","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Informix Corporation
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Informix Corporation
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES ACT OF 1933
+ Release No.   7788 / January 11, 2000
+
+  SECURITIES EXCHANGE ACT OF 1934
+ Release No. 42326 / January 11, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1215 / January 11, 2000
+
+  ADMINISTRATIVE PROCEEDING
+ File No. 3-10130
+
+
+  
+
+     ________________________       
+         : Order Instituting Public  
+   In the Matter of      : Administrative Proceedings      
+        : Pursuant to Section 8A of the  
+    Informix Corporation,       : Securities Act of 1933 and Section 21C   
+        : of the Securities Exchange  
+   Respondent.      : Act of 1934, Making Findings, and  
+    ________________________      : Imposing a Cease-and-Desist Order  
+   
+ I. 
+
+    The Securities and Exchange Commission ("Commission") deems it appropriate to institute public administrative proceedings pursuant to section 8A of the Securities Act of 1933 ("Securities Act") and section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Informix Corporation ("Respondent" or "Company").
+
+  
+ II. 
+
+    In anticipation of the institution of these administrative proceedings, Respondent has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or in which the Commission is a party, and without admitting or denying the findings, except as to the Commission's jurisdiction over it and over the subject matter of the proceedings, which are admitted, Respondent consents to the entry of this Order Instituting Public Administrative Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order ("Order").
+
+    Accordingly, it is ordered that the proceedings pursuant to section 8A of the Securities Act and section 21C of the Exchange Act be, and hereby are, instituted.
+
+  
+ III. Findings 
+
+    On the basis of this Order and Respondent's Offer, the Commission makes the findings set forth below.   1    
+ A. Respondent 
+
+    Informix Corporation is a multinational database software company with its principal executive offices located in Menlo Park, California.  Its common stock is registered pursuant to section 12(g) of the Exchange Act and is traded on NASDAQ.  The Company's fiscal year ends on December 31.
+
+     B.  Introduction 
+
+  In November 1997, the Company restated its financial statements for fiscal years 1994 through 1996 and the fiscal quarter ended March 30, 1997.  During the period covered by the restatements, former employees of the Company, including salespersons, members of management and others engaged in a variety of fraudulent and other practices that inflated annual and quarterly revenues and earnings in violation of generally accepted accounting principles ("GAAP").  These practices included the following:
+
+  (1)  backdating license sale agreements;
+
+    (2)  entering into side agreements granting rights to refunds and other concessions to customers;
+
+    (3)  recognizing revenue on transactions with reseller customers   2   that were not        creditworthy;
+
+    (4)  recognizing amounts due under software maintenance agreements as software license revenues; and
+
+  (5)  recognizing revenue on disputed claims against customers.
+
+  In numerous instances, revenue from software license purchase commitments by resellers was recognized improperly because the earnings process had not been completed due to the Company's obligations under side agreements to perform all, or substantially all, of the reselling effort.  No disclosure of the fraudulent or other improper practices appeared in the Company's filings with the Commission.  The filings also omitted or misrepresented information concerning the extent to which revenues were derived from nonmonetary exchanges and the extent to which revenues were derived from transactions with resellers that had not yet resold software licenses to end-users.
+
+    During 1997, after the Company filed its 1996 Form 10-K, former members of management, aware of evidence of material accounting irregularities, took actions to prevent the Company from restating its previously issued financial statements.  They limited the scope of an internal investigation of 1995 and 1996 transactions with European resellers, concealed a side agreement with an Asian reseller given to obtain rescission of an earlier side agreement, and concealed other side agreements with a European reseller.  In late July 1997, a former member of the Company's corporate finance staff learned of certain side agreements and informed the Company's auditors.   3    The Company's new management then determined that its 1996 financial statements would need to be restated.  On August 7, 1997, the Company publicly announced the need to restate those financial statements. 
+
+    In the restatement process, the Company and its auditors identified $114 million of accounting irregularities in 1995 and 1996 involving more than a hundred transactions, mostly with resellers.  Because the irregularities relating to reseller purchase commitments were so pervasive, the Company and its auditors determined that all such transactions for the three-year period ended in 1996 should be restated to defer revenue recognition until the resellers resold the licenses to end-users.  After making this determination, the Company no longer attempted specifically to identify irregularities involving resellers, although additional irregularities subsequently were discovered.  In November 1997, the Company filed restated annual financial statements for fiscal years 1994, 1995, and 1996 and restated quarterly financial statements for each interim quarter of  1996 and the first quarter of 1997.  The restatements had a material effect on previously reported annual operating results:
+  
+
+    
+
+   Net Revenues (millions)  
+
+   
+
+  Net Income (millions)  
+
+     
+
+ Originally Reported 
+
+ As Restated 
+
+ % Overstated 
+
+   
+
+ Originally Reported 
+
+ As Restated 
+
+ % Overstated 
+     
+   
+   
+   
+     1996   
+ $939.3 
+ $727.8 
+  +29%  
+   
+ $97.8    
+ $(73.6) 
+  +233%  
+     1995   4   
+  
+ $714.2 
+ $632.8 
+  +13%  
+   
+ $97.6    
+ $38.6  
+  +153%  
+     1994   
+ $470.1 
+ $452.0 
+  +4%  
+   
+ $61.9    
+ $48.3  
+   +28%     
+   The restatements also significantly affected the Company's previously reported quarterly revenues and earnings for 1996 and the first quarter of 1997:
+  
+    
+
+   Net Revenues (millions)  
+
+   
+
+  Net Income (millions)  
+
+     
+
+ Originally Reported 
+
+ As Restated 
+
+ % Misstated 
+
+   
+
+ Originally Reported 
+
+ As Restated 
+
+ % Misstated 
+     
+   
+   
+   
+     Q1'96   
+  $204.0  
+ $164.6 
+  +24%  
+   
+ $15.9  
+ $(15.4) 
+  +203%  
+        Q2'96   
+ $226.3 
+ $159.3 
+  +42%  
+   
+ $21.6  
+ $(34.1) 
+  +163%  
+        Q3'96   
+ $238.2 
+ $187.1 
+  +27%  
+   
+ $26.2  
+ $(17.1) 
+  +253%  
+        Q4'96   
+ $270.8 
+ $216.8 
+  +25%  
+   
+ $34.1  
+ $(7.0) 
+  +587%  
+       
+ Q1'97   
+ $133.7 
+ $149.2 
+  - 10%  
+   
+ $(140.1) 
+ $(141.4) 
+  - 1%  
+      As a result of the conduct of former management and others, the Company filed annual and quarterly reports and other filings with the Commission that contained materially false and misleading financial statements and other information.   Also as a result of the conduct, the Company's books, records, and accounts were falsified and thus did not accurately and fairly reflect the Company's transactions and dispositions of assets.  Furthermore, the Company failed to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that transactions were recorded as necessary to permit preparation of financial statements in conformity with GAAP.
+
+     C.  Facts 
+
+    Prior to the quarter ended March 30, 1997, the Company regularly characterized itself in press releases as the fastest growing company in the database software industry.  In reality, its apparent growth in revenues and earnings largely was the result of the use of a multitude of fraudulent and other improper practices.  As a result of these practices by former managers and employees, the Company's filings with the Commission were materially false and misleading.
+
+      
+  1. Use of Fraudulent Practices To Inflate Revenues and Earnings  
+
+    The fraudulent conduct described herein was driven by some former managers' perceived need to meet or exceed the Company's internal revenue and earnings goals, which were based, in part, on financial analysts' expectations.  As it became increasingly difficult to achieve these goals, some former managers and other employees increased their reliance on fraudulent and other practices to inflate reported revenues and earnings.
+
+        a. Backdating Agreements
+
+    As the end of each quarter neared, Company sales personnel routinely rushed to conclude as many transactions as possible to meet revenue and earnings goals for that quarter.  In numerous instances, however, they were unable to complete negotiations and obtain signed license agreements from customers prior to quarter-end, as required for revenue recognition under GAAP.  5    Notwithstanding the Company's written policy that revenue on license agreements should not be recognized unless the agreements were signed and dated before quarter-end, there was an accepted practice of signing license agreements after quarter-end and then backdating them to appear as if they had been executed prior to quarter-end.  By engaging in this conduct, former management and others fraudulently inflated quarterly and annual revenues and earnings.
+
+    The Company had inadequate controls for determining whether, or ensuring that, software license agreements had been negotiated and signed by both parties in the quarter in which revenue was recognized.  The dating of signatures on agreements was essentially controlled by salespersons, who were under constant pressure to meet quarterly sales goals.  The Company had no requirement for signed agreements to be submitted at or before quarter-end, and the Company regularly accepted agreements submitted several days thereafter for revenue recognition.  In at least one instance, the Company recognized revenue on an agreement that was not signed until approximately one month after the end of the quarter.
+
+        b. Use of Side Agreements
+
+    Former sales personnel, managers, and others at the Company used a variety of written and oral side agreements with customers as a means to inflate revenues and earnings.  The terms of the side agreements varied and included provisions
+
+    (1) allowing resellers to return and to receive a refund or credit for unsold licenses;
+
+    (2) committing the Company to use its own sales force to find customers for resellers;
+
+    (3) offering to assign future end-user orders to resellers;
+
+    (4) extending payment dates beyond twelve months;   6    (5) committing the Company to purchase computer hardware or services from customers under terms that effectively refunded all, or a substantial portion, of the license fees paid by the customer;
+
+    (6) diverting the Company's own future service revenues to customers as a means of refunding their license fees; and
+
+    (7) paying fictitious consulting or other fees to customers to be repaid to the Company as license fees.
+
+  The terms of these side agreements should have prevented the Company from recognizing revenue on the transactions under GAAP.  7    Former salespersons and managers often entered into side agreements in order to "park" software licenses with resellers and thereby accelerate revenue recognition.  8    These former salespersons and managers sometimes entered into such agreements because they were unable to complete transactions with identified end-users by the end of the period in which they wished to recognize revenue.  On other occasions, they entered into such agreements because they needed additional revenue but had not yet found end-users prepared to purchase software licenses.
+
+    One of the most notable examples of the use of side agreements occurred with a European reseller some Company employees referred to as a revenue "bank" and a "virtual warehouse".  The reseller was ineffective at selling the Company's software.  For 1995, the reseller entered into purchase commitments for $9.5 million of software licenses but resold only $2.8 million of those licenses in 1995.  For the first half of 1996, the reseller entered into purchase commitments for $5.9 million of licenses but, during 1996, resold only $6.2 million of licenses purchased in 1995 and none of the licenses purchased in the first two quarters of 1996.  Notwithstanding the reseller's inability to sell a substantial amount of the licenses it committed to purchase, to inflate the Company's 1995 and 1996 revenues and earnings, former Company employees repeatedly induced the reseller to agree to quarter-end purchase commitments by entering into a variety of side agreements with the reseller.
+
+    In the third quarter of 1995, the Company recorded two purchase commitments from the "bank" reseller.  To induce the reseller to enter into one of these commitments, former Company employees offered to assign the reseller a transaction that the Company's own sales force was negotiating with an end-user.  Company employees also offered to assign the same end-user transaction to two other resellers to induce them to make purchase commitments.  As a result, the Company recognized revenue three times from purchase commitments based on offers to assign this one end-user transaction.
+
+    At the end of the fourth quarter of 1995, the "bank" reseller had $5 million of unsold licenses it had committed to purchase and was reluctant to enter into an additional commitment.  The reseller, which was also a computer equipment distributor, agreed to an additional $2.5 million commitment only after Company employees agreed to a $2 million purchase of computer hardware, including obsolete equipment that Company employees understood the reseller otherwise would have to write-off.
+
+    In the first half of 1996, former Company employees induced the "bank" reseller to purchase $5.9 million in additional software licenses by assigning several large transactions negotiated by the Company's own sales staff to reduce the reseller's outstanding purchase commitment by $929,000.  To enable the reseller further to reduce the remaining balance of its purchase commitment, these former employees also agreed to find customers whose license purchases would be applied against the reseller's commitment.  By the end of the third quarter of 1996, certain former employees believed that the reseller's outstanding, unsold commitment would cause the Company's auditors to object to recognizing revenue from additional commitments to purchase software licenses for resale.  Under pressure to find additional revenue to meet third quarter sales goals, former Company employees asked the reseller to purchase $3.9 million of software licenses for its internal use.  The reseller agreed to this proposal only on the condition that the Company pay back the license fees through a software maintenance outsourcing agreement.  A former Company employee entered into a side agreement providing for the reseller to receive $3.9 million of profits from such maintenance services.  In addition, the side agreement provided for the Company to purchase up to $3.9 million of computer hardware from the reseller.   9    Side agreements with other resellers also permitted the Company improperly to inflate revenues and earnings.  For example, in both the third and fourth quarters of 1996, sales personnel entered into side agreements that allowed resellers to cancel software license purchase commitments.  One such side agreement allowed a reseller to cancel a third quarter commitment of $6 million, which represented more than 14% of the Company's pretax income for that quarter.  Another side agreement allowed a different reseller to cancel a fourth quarter commitment of $6.4 million, which represented more than 11% of the Company's pretax income for that quarter.  The terms of these and other side agreements made it improper for the Company to recognize revenue on the underlying software license purchase commitments.
+
+        
+c. Revenue from Maintenance Contracts Recorded as License Revenue  
+
+    Under GAAP, revenue from a services agreement such as a software maintenance contract must be recognized ratably over the periods covered by the services agreement, whereas, if all other conditions for revenue recognition have been satisfied, revenue from a license sale agreement can be recognized upon delivery of the software.   10    Company employees recorded service agreements as license sales, thereby improperly accelerating revenue recognition.  For example, in the fourth quarter of 1996, former employees intentionally recorded the renewals of three software maintenance contracts totaling $11.2 million as license sales and thus inflated reported pretax income for the quarter by 25%.
+
+        
+d. Revenue Recognized Without Persuasive Evidence of an Arrangement and Without Adequate Assessment of Creditworthiness
+
+    Under GAAP, revenue cannot be recognized "until persuasive evidence of the agreement [with the customer] exists and an assessment of the customer's creditworthiness has been made".   11    Former managers and others at the Company violated both of these requirements.  For example, in the second and third quarters of 1996, a former sales manager pressured a member of the European finance staff to recognize revenue on transactions with purported end-user customers when no contracts had been signed with, and no formal acceptance had been received from, the end-users.  In connection with transactions with newly established or undercapitalized resellers, former sales managers also pressured the European finance staff to disregard the Company's policy for assessing customer creditworthiness.  As a result of these revenue recognition practices, the Company improperly recognized revenue in 1996 of at least $3.3 million in the first quarter, $9.1 million in the second quarter, and $8.2 million in the third quarter.  12    
+e. Recognition of Revenue on Disputed Claims Against     Customers
+
+    On two occasions, the Company recognized revenue based on its assertion that customers used more copies of software than allowed under their license agreements.  If true, the customers would owe additional license fees to the Company.  Under GAAP, such claims constitute gain contingencies that should not be recorded as income until realized.   13    In the fourth quarter of 1995, the Company invoiced a customer for $5.4 million for excessive license use at full list price.  At the time, former members of the Company's European finance staff believed the claim would be settled at a lesser amount reflecting a discount from list price.  In addition, the customer was told that the amount due could be applied against a future software license purchase then under negotiation.  The customer did not agree to settle the claim until the first quarter of 1996.  The Company nevertheless improperly recognized the full amount of the claim as 1995 revenue, which increased fourth quarter 1995 pretax income by more than 13%.  After the claim was settled in the first quarter of 1996 for $3.6 million, the $1.8 million excess amount should have been written off in that quarter.  Former managers instead mischaracterized the excess amount as an unbilled maintenance fee receivable, which was written off over the last three quarters of 1996.   14    In the second quarter of 1996, the Company asserted a claim against another customer based on alleged excessive license use.  Although the customer disputed the claim, former managers caused the Company to record $2.2 million in revenue based on this disputed claim, which improperly increased quarterly pretax income by 6%.  The Company settled the claim for $250,000 in the first quarter of 1997 and wrote off the excess amount against first quarter 1997 operating results.
+
+        
+f.  Failure To Deliver Usable Software
+
+    Under GAAP, revenue from a software sale should not be recognized until a copy of the software has been delivered to the customer.   15    At the end of the fourth quarter of 1996, the Company recorded a $9.2   million software sale to a computer hardware manufacturer ("OEM") that intended to resell the software pre-installed on computer hardware.  The Company, however, had failed to deliver the required software code to the OEM prior to year-end.  In January 1997, the Company delivered a "beta" version of the software code that did not function on the OEM's hardware.   16    The Company did not complete delivery of usable software code to the OEM until more than six months after the end of 1996.  The Company's improper revenue recognition from this transaction alone increased its fourth quarter 1996 pre-tax income by an approximately 13%.
+
+      
+  2. Other Improper Practices that Caused the Company's     Revenues and Earnings To Be Inflated  
+
+    In addition to the fraudulent practices described above, former employees of the Company engaged in a variety of other improper practices to meet or exceed internal financial goals, resulting in the overstatement of revenues and earnings.
+
+      
+a. Improper Revenue Recognition on Superstore  Transactions
+
+    In 1996, former management decided to open demonstration centers, known as Superstores, located at various sites worldwide.  A Superstore would provide a location for the Company and an OEM to function as a team to sell a joint hardware-software solution to a potential customer.  Equipping the Superstores required purchases of significant amounts of computer hardware.  During 1996, the Company employed a sales strategy whereby various OEMs were approached with the concept of forming a "partnership" in which the Company would buy computer hardware from the OEMs to be placed in the Superstores and then used in joint sales efforts by the Company and the OEM "partner".  In return for the Company's hardware purchase commitments, the OEMs were asked to enter into software license purchase commitments of similar or greater magnitude.  To increase the Company's revenues and earnings further, the OEMs also were asked to commit to purchase licenses for the demonstration software installed on the Superstore computer hardware owned by the Company.  17    Internally, some Company personnel referred to the transactions with Superstore OEM partners, and similar transactions involving mutual purchases, as "swaps".   18     As a policy, however, the Company always structured the software sales and hardware purchases as separate transactions with cash exchanged.  The timing of payments often was structured so that the Company's payments could provide cash flow for the OEMs at about the same time their software license fee payments came due.  
+
+    The OEMs' software purchase commitments were based on the premise that the Company would incur the future costs of setting up and equipping the Superstores, which then would be used to sell the software that the OEM partners had committed to purchase.  Many of the OEM partners lacked a sales force familiar with Company products and expected the Company's sales force to have a substantial involvement in the reselling effort.  The expense of the Company's involvement in reselling the software for the OEM partners was indeterminable but substantial based on the Superstore program costs alone. To encourage its sales force to assist the OEMs, in late 1996, the Company began to offer higher commission rates if a sale was closed through an OEM partner rather than directly by the Company.  In the first quarter of 1997, former management gave the sales force performance goals to obtain end-user orders to be applied against the OEM partners' outstanding commitments.
+
+    Under GAAP, if "other vendor obligations remaining after delivery are significant, revenue should not be recognized, because the earnings process is not substantially completed."   19     The Company, however, recognized revenue at the time the OEM partners agreed to the purchase commitments notwithstanding that the Company was obligated to pay the costs and expenses of establishing and operating the Superstores and that the Company's sales force was to perform all, or a significant portion of, the future reselling efforts.
+
+        
+b. Revenue Recognized from Licenses Sold to Resellers     Under Extended Payment Terms
+
+    As previously described, the ability to recognize revenue for a software license sale under GAAP depends, in part, on whether the related fee is fixed, and a fee is presumed not to be fixed if it is due more than twelve months after delivery of the software.   20    GAAP thus requires restricting the initial revenue recognition from a software license sale to only those payments due within twelve months, with deferral of revenue recognition for payments due beyond twelve months.
+
+    The Company routinely recognized revenue on reseller software license purchase commitments that included payment terms that extended beyond twelve months.  To do so, the Company used third-party financing to accelerate cash receipts to within twelve months of the sale.   21    The issue underlying the twelve-month rule with respect to resellers is that, due to product obsolescence or lack of end-user demand, resellers might make payment of outstanding amounts conditional on receiving refunds or other concessions, such as rights to additional products, and, to preserve the business relationship with the customer, the vendor might grant such concessions.   22     The use of third-party financing, although accelerating cash receipts, did not address the issue underlying the twelve-month rule.  As a result, the Company's use of third-party financing arrangements as a basis to accelerate revenue recognition related to license payments not due within twelve months was improper.
+
+      
+  3. Misrepresentations and Omissions in the Company's Filings  
+
+    As a result of the foregoing fraudulent and other improper practices by former management and others, the Company's financial statements for 1995 and 1996 and the interim periods were misstated.  In addition, former management caused Company filings to omit certain information, and to misrepresent other information, concerning nonmonetary exchanges and the significant amount of software sold to resellers but not yet resold to end-users. The Company's periodic reports and other Commission filings that included financial information for 1995 and 1996 consequently were materially false and misleading.
+
+    During 1996, the Company engaged in numerous nonmonetary exchanges that included the Superstore transactions discussed above as well as other software-for-hardware exchanges and software-for-software exchanges.   23    These transactions materially increased the Company's reported revenues and earnings.  For the first quarter of 1996, nonmonetary exchanges represented approximately 9% of reported revenues and 66% of  reported pretax income; for the second quarter of 1996, nonmonetary exchanges represented approximately 15% of reported revenues and 93% of reported pretax income; for the third quarter of 1996, nonmonetary exchanges represented approximately 26% of reported revenues and more than 100% of reported pretax income; and, for the fourth quarter of 1996, nonmonetary exchanges represented approximately 12% of reported revenues and 58% of reported pretax income.  For the year, according to the Company's 1996 amended Form 10-K, the nonmonetary exchanges accounted for $170 million, or more than  18%, of 1996 revenues.  The net profit from these nonmonetary exchanges represented more than 100% of the originally reported 1996 pretax income.
+
+    Despite the impact of the nonmonetary exchanges on operating results, prior to the March 1997 filing of the 1996 Form 10-K, former management decided that no disclosures concerning the nonmonetary exchanges would be included in the Company's filings with the Commission.  In connection with the 1996 Form 10-K, management decided to make some disclosure of the nonmonetary exchanges.  The resulting disclosure, however, was misleading because it concerned only those nonmonetary exchanges in which the software license sale recorded by the Company was within 25% of  the dollar value of the Company's corresponding purchase commitment.   24    Using this formula, the Company disclosed only that, in 1996, it had sold approximately $55 million of software licenses to certain vendors where the Company concurrently committed to acquire goods or services of approximately the same dollar amount.  In fact, during 1996, the Company entered into nonmonetary exchanges by which it sold $170 million of licenses and purchased $130 million of goods and services.
+
+    As a result of the conduct of former management, the Company also omitted information concerning the extent to which the Company's revenues were based on software license sales to resellers that had not resold the licenses to end-users.  By 1996, the Company was unable to meet its revenue and earnings goals from sales directly to end-users.  During 1996, former management, therefore, turned to obtaining large software license purchase commitments from OEMs and other resellers.  The total amount of unsold licenses from reseller commitments grew throughout 1996 primarily because many resellers were unable to resell the software licenses.  The level of the resellers' unsold licenses was material information relating to the nature of current reported revenue and earnings growth.  In addition, the growth in the level of unsold licenses was a known trend that reasonably could be expected to have a material adverse impact on future revenue and earnings growth.  Notwithstanding the importance of the information, former management decided that the Company would not disclose in its quarterly filings information regarding the level of licenses not resold.  At year-end, former management decided that the Company would disclose in its Form 10-K that half of the Company's 1996 license sales were to resellers and that almost half of those licenses had not been resold to end-users, i.e. approximately a quarter of the licenses recorded as sold had not been resold to end-users.  Former management, however, failed to cause the Company to disclose that, in many instances, the Company was obligated to provide substantial assistance to the resellers to find end-users to purchase the resellers' unsold licenses.
+
+      
+  4. Former Management's Efforts To Avoid a Restatement  
+
+    On March 31, 1997, the Company filed its Form 10-K for 1996, which, for the first time, included disclosures concerning the nonmonetary exchanges and the amount of license purchases by resellers that had not been resold to end-users.   25    The next day, the Company unexpectedly announced that revenues for the first quarter of 1997 would be $59 million to $74 million below revenues for the first quarter of 1996.  26    The revenue shortfall resulted largely from a significant decline in license purchase commitments from resellers during the first quarter.  On the day of the announcement, the Company's stock price and market capitalization decreased 34.5%.  The stock price decreased from 15 1/8 to 9 29/32, and the market capitalization dropped from $2.3 billion to $1.5 billion.
+
+    About two weeks after the announcement of the first quarter revenue shortfall, the Company's auditors learned of potential accounting irregularities relating to certain 1995 and 1996 transactions with European customers.  The auditors learned this information from customer correspondence brought to their attention by a former Company employee.  The auditors informed former management and recommended that the Company conduct an internal investigation of transactions with approximately twenty customers to determine whether revenue recognition on those transactions had conformed with GAAP.  The Company retained a law firm and began an investigation.
+
+    Former management, aware that the results of the investigation could cause a restatement, limited the scope of the investigation by decreasing the number of customers whose transactions would be investigated to five and by focusing the investigation on the legal enforceability of the formal license agreements notwithstanding side agreements and other circumstances.  Following the investigation, the law firm rendered findings that the formal agreements were legally binding on the customers.  The firm did not address whether the side agreements, or other circumstances surrounding the formal agreements, affected revenue recognition under GAAP.  The auditors reviewed the findings and made determinations on whether revenue recognition on the transactions had conformed with GAAP.  They concluded that revenue on two transactions had been recognized incorrectly  27   and that a bad debt reserve for a 1996 transaction should be recorded in 1997.  No adjustments were proposed for two of the transactions, one of which was the third quarter 1996 transaction with the "bank" reseller for the sale of an internal use license.   28    Former management and the auditors decided that it was not necessary to restate financial statements for prior years.
+
+    In late June 1997, the auditors learned of a side agreement to a transaction with an Asian reseller for which the Company had recognized $4.7 million of revenue in the fourth quarter 1996.  29    The Asian reseller had requested that payment terms for the software licenses be extended to late 1998, approximately two years after the date of its software license purchase agreement.  The former Company salesperson insisted that the purchase agreement had to reflect a final payment date of November 1997, i.e. within the twelve-month period required by GAAP and the Company's policy for revenue recognition, but provided a side agreement allowing payment to be extended until November 1998.
+
+    Upon learning of this side agreement from a former member of the Company's corporate finance staff, the auditors told former management that the 1996 financial statements needed to be restated unless the side agreement could be rescinded without giving concessions or consideration to the Asian reseller.  A former member of senior management met with the Asian reseller and negotiated a rescission of the side agreement.  During these negotiations, the former senior manager agreed that the Company would purchase approximately $3 million of unspecified goods and services from the Asian customer, the same amount that the customer owed the Company under its software license purchase commitment.   30    The auditors subsequently were told that the side agreement had been rescinded, but the existence of the related purchase agreement was concealed from them.  The auditors dropped their insistence on the restatement.   31    At about the time when management was discussing obtaining a rescission of the side agreement with the Asian reseller, a former member of senior management learned of several side letters relating to 1996 transactions with a European reseller.  Aware that these side agreements would cause a restatement,  the former senior manager failed to inform the Company's finance staff or auditors immediately.
+
+    Shortly thereafter, however, a member of the Company's Asian finance staff informed the auditors of additional side agreements with other Asian resellers that that employee had discovered.  In response, the auditors expanded their audit procedures with respect to the Company's previously released 1996 financial statements.  While the auditors were performing these procedures, a former member of the Company's corporate finance staff learned of, and alerted the auditors to, the side agreements with the European reseller.  That former finance staff member also learned, and informed the auditors, that, notwithstanding the admonition against giving concessions or consideration, the Company had agreed to purchase approximately $3 million of unspecified goods and services from the Asian reseller.  Based on the material effect of the side agreements on revenue recognition, the Company, by then under new management, decided to restate its 1996 financial statements.  On August 7, 1997, the Company announced the need for a restatement.
+
+      
+  5. The Company's Restatements  
+
+    By early September 1997, the Company and its auditors had identified more than $100 million of irregularities recorded in its previously issued financial statements.  Many of the irregularities related to transactions with resellers.  Determination of the full extent of the irregularities that had occurred proved difficult due to the lack of reliable documents caused by the practice of back-dating and due to the large number of salespersons knowledgeable about past transactions who no longer were employed by the Company.  Given the frequent use in 1995 and 1996 of side agreements with resellers and the Company's substantial involvement in the reselling effort, the Company and its auditors determined that the Company should not have recognized revenue from reseller software license purchase commitments until the software licenses were resold.  As a consequence, the Company restated its financial statements for fiscal years 1994 through 1996 and the first quarter of fiscal year 1997.   32    On November 18, 1997, the Company filed an amendment to its 1996 Form 10-K restating its financial statements for fiscal years 1994 through 1996.  On November 19, 1997, the Company filed its Forms 10-Q for the second and third quarters of 1997 and an amendment to its Form 10-Q for the first quarter of 1997 restating its financial statements for each interim quarter of 1996 and the first quarter of 1997.  The effect of the restatements on the Company's previously filed financial statements is summarized  supra  at Part III(B).
+
+  
+  6. False and Misleading Books, Records, and Accounts and Insufficient Internal Accounting Controls  
+
+    As a result of the fraudulent and other improper practices discussed  supra  at Part III(B), (C)(1), (2), the Company's books, records, and accounts were false and misleading.  In addition, the Company failed to maintain a system of internal accounting controls that was sufficient to enable it to prepare financial statements in conformity with GAAP.  The lack of sufficient internal accounting controls contributed directly to the fraud and resulted primarily from an organizational structure under which many key finance personnel responsible for revenue recognition reported directly to sales management rather than to senior finance executives.  As a result of this organizational structure, finance personnel came under pressure from former sales management to recognize revenue from transactions that did not conform with GAAP, such as backdated transactions, transactions with customers whose creditworthiness had not been investigated, and transactions for future maintenance services that were treated as license transactions.
+  
+ D. Legal Conclusions 
+
+    The type of conduct that occurred in this matter strikes at the heart of the financial reporting system established by the federal securities laws.  As we have emphasized in the past, "[c]omplete and accurate financial reporting by public companies is of paramount importance to the disclosure system underlying the stability and efficient operation of our capital markets.  Investors need reliable financial information when  making investment decisions."    33   To achieve the objective of providing investors with complete and accurate financial information, it is essential that public companies maintain accurate books, records, and accounts and establish and maintain internal controls that serve to prevent and to detect fraudulent and other improper conduct.  In addition, management, through its own conduct and through the policies and practices that it prescribes for others, must create an environment in which only the highest standards of integrity will be tolerated.  Too often,  accounting and disclosure rules are disregarded in order that revenues and earnings can be inflated improperly to meet earnings projections of analysts or others in the financial community or to achieve some other objective.  The financial information that an issuer discloses simply should present completely and accurately the issuer's financial condition for the relevant reporting period.  Without this information, investors are deprived of the opportunity to make informed investment decisions.
+
+    In this matter, through former members of management and others, the Company engaged in an accounting fraud that lasted more than two years and resulted in the preparation of numerous materially false and misleading financial statements and other disclosures that were included in filings with the Commission and disseminated to investors.   34    As this fraud was being uncovered, certain of these individuals engaged in further fraudulent conduct that delayed the restatements of the Company's financial statements.  In addition, as a result of the conduct of former management and others, the Company failed to maintain books, records, and accounts which, in reasonable detail, accurately and fairly reflected its transactions and dispositions of assets and failed to maintain a system of internal accounting controls sufficient to permit the preparation of financial statements in conformity with GAAP.
+
+    Based on the foregoing, the Commission concludes that the Company violated section 17(a) of the Securities Act, sections 10(b), 13(a), and 13(b) of the Exchange Act, and Exchange Act rules 10b-5, 12b-20, 13a-1, 13a-13, and 13b2-1.
+
+  
+ IV. Order 
+
+    Based on the foregoing, the Commission deems it appropriate and in the public interest to accept the Company's Offer and to impose the sanctions agreed to therein.  In determining to accept the Offer, the Commission considered remedial acts promptly undertaken by Respondent and cooperation afforded the Commission staff.  Accordingly, 
+
+   It is hereby ordered  that, pursuant to section 8A of Securities Act and section 21C of the Exchange Act, Informix Corporation cease and desist from committing or causing any violation, and any future violation, of section 17(a) of the Securities Act, sections 10(b), 13(a), and 13(b) of the Exchange Act, and Exchange Act rules 10b-5, 12b-20, 13a-1, 13a-13, and 13b2-1; and
+
+   It is further ordered  that Informix Corporation comply with its undertakings to do the following:  A) upon reasonable request by the Commission or its staff, and on reasonable notice and without service of a subpoena, it will provide documents or other information; B) at the request of the Commission or its staff, it will appear and testify at any deposition, hearing, or trial in an action or administrative proceeding arising out of the matters described in the Order and, in connection with any such deposition, hearing, trial, or administrative proceeding, Informix Corporation hereby 1) appoints Gary Lloyd or any other senior officer of Informix Corporation as Informix Corporation's agent to receive on behalf of Informix Corporation any notice or subpoena for its appearance and testimony, 2) agrees that any such notice or subpoena for Informix Corporation's appearance and testimony may be served on Gary Lloyd or any other senior officer of Informix Corporation by mail, and 3) agrees that any such notice or subpoena for Informix Corporation's appearance and testimony may be served and may request testimony beyond the territorial limits imposed by rule 45 of the Federal Rules of Civil Procedure, provided that the party requesting the appearance and testimony reimburses Informix Corporation's  travel, lodging, and subsistence expenses at then prevailing U.S. Government per diem rates; and C) at the request of the Commission or its staff, it will take all reasonable actions to make its officers, directors, employees, and agents available to testify at any interview, investigative testimony, deposition, judicial proceeding related to this Order, and any administrative proceeding arising as a result of the Commission's investigation entitled In the Matter of Informix Corporation.
+
+    By the Commission
+
+                Jonathan G. Katz
+
+              Secretary
+
+  
+   Footnotes 
+ 
+
+
+    1     The findings herein are made pursuant to the Offer and are not binding on any other person or entity in this or any other proceeding.
+
+    2     A reseller is a software distributor or an entity that includes software with products or services that the entity sells.   See  Software Revenue Recognition, Statement of Position 91-1, §.03 (American Inst. of Certified Pub. Accountants 1991).  A reseller differs from an end-user in that an end-user is the party that ultimately uses the software in an application.   Id. 
+
+  During the time of the conduct described in this Order, the accounting principles applicable to software revenue recognition were set forth in Software Revenue Recognition, Statement of Position 91-1,  supra .  In October 1997, that Statement of Position was superseded by Software Revenue Recognition, Statement of Position 97-2 (Amer. Inst. of Certified Pub. Accountants 1997), which became effective for transactions entered into for fiscal years beginning after December 15, 1997.  The software revenue recognition accounting principles discussed in this Order are those set forth in Software Revenue Recognition, Statement of Position 91-1,  supra .
+
+    3     After the Company restated its financial statements, it replaced its auditors.  All references to the auditors in this Order are to the former auditors.
+
+    4     The 1995 "Originally Reported" amounts have been adjusted to reflect a 1996 pooling-of-interest business combination, which is also reflected in the 1995 "As Restated" amounts.
+
+    5     Under GAAP, revenue on a software license agreement to be documented by a written contract should not be recognized until the contract is signed.  Software Revenue Recognition, Statement of Position 91-1,  supra , § .50.
+
+    6     Under GAAP, a fee is presumed not to be fixed if the payment is not due until more than 12 months after delivery.   Id.  § .57.  As discussed  infra  at note 7, one of the requirements for revenue recognition under GAAP is that the fee is fixed.
+
+    7     Under GAAP,  a software vendor such as the Company may recognize revenue from the sale of software licenses if the software has been delivered, the vendor has no continuing obligations under the sale or license agreement, and the fee is fixed and irrevocable and collectibility is probable.   Id.  §§ .32-.34, .57-.58.  In some instances, the side agreements were entered into contemporaneously with the formal agreements to induce customers to enter into the formal agreements and, if not concealed, would have prevented the Company from initially recognizing revenue.  In other instances, the side agreements were entered into after the parties had signed, and the Company had recognized revenue on, the formal agreements and, if not concealed, would have required the Company to adjust its financial statements to reduce revenues and earnings.
+
+    8     The Company entered into what was known as "pool-of-funds" agreements with resellers.  Under these agreements, a reseller made an irrevocable commitment to purchase a certain amount of software licenses at a discount to the Company's list price for resale to end-users and other customers.   When the reseller obtained an order, customer information usually was provided to the Company, and the Company then delivered the software to the reseller's customer.  The Company thus, in most cases, was able to gauge the reseller's progress or lack of progress in reselling its software.
+
+    9     After the filing of the Company's Form 10-K for 1996, the Company allowed the reseller to convert the internal-use license, which the reseller neither wanted nor needed, into an additional reseller purchase commitment.
+
+    10     See  Software Revenue Recognition, Statement of Position 91-1,  supra , §§ .32, .41.
+
+    11     Id.  §§ .32, .50, .58, .78.
+
+    12     None of  the reseller or end-user customers made any payments prior to the end of 1996.  Prior to the filing of the Company's 1996 Form 10-K in March 1997, former members of management learned that the lack of collections was due to the absence of signed contracts, customer liquidity problems, or, for resellers, the inability to pay the amount due until the software licenses were resold.  Former management, however, allowed only a small increase in the bad debt reserves.
+
+    13     See  Accounting for Contingencies, Statement of Financial Accounting Standards No. 5, ¶  17(a) (Financial Accounting Standards Bd. 1975).
+
+    14     The write-off was spread over three quarters to minimize the impact on the second quarter's earnings.
+
+    15     See  Software Revenue Recognition, Statement of Position 91-1,  supra , § 32.
+
+    16     A "beta" version of software is a preliminary version of  software that is distributed at no charge to potential customers for initial testing to identify problems that must be corrected prior to making a final version of the software available for sale.
+
+    17     In one instance, in desperate need of additional profits for the third quarter of 1996, the Company negotiated a software sale and hardware purchase with an OEM and agreed to purchase its own software as part of the cost of the hardware it was buying. 
+
+    18     A variety of factors indicated that these mutual purchases were nonmonetary exchanges.  The level of hardware purchases should have been based on the amount of equipment needed for the Superstores but instead varied based on the size of the software license purchase commitment the customer was willing to make.  Former salespersons at times offered to increase the amount of computer hardware purchases to induce large software license purchase commitments from OEMs, and OEMs sometimes made counterproposals to buy less software and to sell less hardware.  In addition, most salespersons involved were paid commissions at a "barter" rate, which was significantly lower than normal commission rates for software sales.
+
+    19     Software Revenue Recognition, Statement of Position 91-1,  supra , § .68. 
+
+    20     See supra  note 7.
+
+    21     GAAP did not provide an exception to the twelve-month rule if third-party financing arrangements were used to accelerate a company's receipt of cash.
+
+    22     In addition, where third-party financing was used, the vendor might grant concessions to prevent defaults to the third-party financing company and thus preserve the vendor's relationship with the financing company.
+
+    23     As with the Superstore transactions, the other software-for-hardware transactions and the software-for software transactions were structured to appear to be separate transactions.  The transactions were, in substance, nonmonetary exchanges and thus subject to the disclosure requirements of Accounting Principles Board Opinion No. 29, Accounting for Nonmonetary Transactions (Accounting Principles Bd. 1973).
+
+    24     The 25% formula was derived from accounting literature that does not address the issue of disclosure.   See  Nonmonetary Transactions: Magnitude of Boot and the Exceptions to the Use of Fair Value, Emerging Issues Task Force Abstracts Issue No. 86-29 (Emerging Issues Task Force 1988).  In any event, that literature does not apply to the type of transactions involved here.   Id. ; Accounting for Nonmonetary Transactions, Accounting Principles Board Opinion No. 29, ¶  21 (Accounting Principles Bd. 1973).
+
+    25     See supra  Part III(C)(3).
+
+    26     The Company announced its first quarter 1997 results several weeks earlier than it otherwise would have due to the large revenue shortfall.
+
+    27     The auditors determined that revenue on one transaction should not have been recognized in 1995 and that revenue on the other transaction should not have been recognized in 1996.
+
+    28     See supra  Part III(C)(1)(b).
+
+    29     The side agreement allowed the customer to delay the final payment to November 1998, extending the date for the customer to pay the balance beyond 12 months.  These terms made revenue recognition on the transaction in 1996 improper under GAAP and the Company's revenue recognition policies.
+
+    30     In fact, the Asian customer agreed to rescind the side letter only if the Company agreed to make purchases from the Asian customer equal to the remaining balance of approximately $3 million still owed to the Company.  The Company executive involved accepted this offer without any substantive discussion as to the specific goods or services to be purchased.
+
+    31     As discussed  supra  at note 29, the terms of the side agreement made it improper for the Company to recognize revenue on the transaction in 1996.  The rescission of the side agreement in 1997 could not remedy the improper revenue recognition in 1996.
+
+    32     GAAP generally requires the consistent application of accounting principles for each period for which financial statements are presented.   See  Accounting Changes, Accounting Principles Board Opinion No. 20, § 15 (Accounting Principles Bd. 1971).  As a result, regardless of whether irregularities in 1994 and first quarter 1997 reseller transactions were found, the 1994 and first quarter 1997 financial statements required restatement.
+
+    33     Request for Comment on Increasing the Level of Involvement of the Independent Accountant with Interim Financial Information, Release Nos. 33-6837; 34-26929; 35-24907; IC-17016, 54 Fed. Reg. 27,023, at 27,024 (June 20, 1989).
+
+    34     In addition to annual and quarterly reports, the Company's filings during the time period included registration statements filed pursuant the Securities Act that incorporated materially false and misleading information from the Company's annual and quarterly reports.
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1217.txt b/raw/aaer/2000/AAER-1217.txt
new file mode 100644
index 0000000000000000000000000000000000000000..1d8eea338e58df77eeecc3f54e59e1705df4e22c
--- /dev/null
+++ b/raw/aaer/2000/AAER-1217.txt
@@ -0,0 +1,1512 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Edward Welch 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/360111","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Edward Welch
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Edward Welch
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ Securities and Exchange Act of 1934
+ Release No.  42355 / January 24, 2000 
+
+ Accounting and Auditing Enforcement
+
+ Release No.   1217 / January 24, 2000 
+
+ Administrative Proceeding
+
+ File No. 3-10134  
+  
+                             :
+        In the Matter of     :    ORDER INSTITUTING PUBLIC
+                             :    PROCEEDINGS PURSUANT TO
+         Edward Welch,       :    SECTION 21C OF THE 
+                             :    SECURITIES EXCHANGE ACT OF 1934,         
+                             :    MAKING FINDINGS, AND IMPOSING
+           Respondent.       :    A CEASE-AND-DESIST ORDER          
+                             :
+							 
+							   
+
+    I.  
+
+     
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate that public administrative proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Edward Welch ("Welch"). 
+
+    II.  
+
+   In anticipation of the institution of these administrative proceedings, Welch has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings contained herein, except as to the Commission's finding of jurisdiction over him and the subject matter of this proceeding, which Welch admits, Welch consents to the issuance of this Order Instituting Proceedings ("Order") and to the entry of the findings and the imposition of relief set forth below. 
+
+    III.  
+
+    FINDINGS  
+
+   On the basis of this Order and the Offer submitted by Welch, the Commission finds that:  
+
+    Summary  
+
+   A. During the period described below, KnowledgeWare, Inc. ("KnowledgeWare"), a company engaged in the business of, among other things, marketing computer software products, and certain of its executive officers and employees engaged in a financial fraud that violated the antifraud, periodic reporting, books and records, and internal controls provisions of the federal securities laws.  Specifically, from at least July 1, 1993 through June 30, 1994 ("FY 1994"), KnowledgeWare and certain of its executive officers and employees artificially inflated KnowledgeWare's revenue and net income on its books and records and in its public filings with the Commission by fraudulently recognizing sales revenue in connection with transactions that did not constitute  bona   fide  sales.  As a result, KnowledgeWare's books and records were inaccurate and its interim reports on Forms 10-Q for the quarters ended September 30, 1993, December 31, 1993 and March 31, 1994 were materially false and misleading. 
+
+    The Respondent  
+
+   B. Welch, age 56, was employed during the year ended June 30, 1994 as a District Sales Manager at KnowledgeWare. 
+
+    The Issuer  
+
+   C. During FY 1994, KnowledgeWare was a Georgia corporation with principal offices located in Atlanta, Georgia.  At all times relevant hereto, KnowledgeWare's common stock was registered with the Commission pursuant to Section 12(g) of the Exchange Act.  Knowledgeware common stock was quoted on the NASDAQ National Market System. 
+
+    Welch's Role In The Financial Fraud  
+
+   D. KnowledgeWare filed materially false and misleading interim reports on Forms 10-Q with the Commission for the quarters ended September 30, 1993, December 31, 1993 and March 31, 1994.  Specifically, KnowledgeWare materially overstated revenue and net income in each of those quarterly reports.  In addition, KnowledgeWare falsely reported a profit for both the quarter and the nine months ended March 31, 1994 when, in fact, KnowledgeWare incurred a loss in both periods. 
+
+   E. The foregoing misstatements resulted in part from conduct in which Welch engaged.  Specifically: 
+
+     1. In negotiating purported sales transactions with resellers of computer software products ("Resellers"), Welch granted the resellers the unconditional right to return the purportedly purchased products to KnowledgeWare ("Return Rights") and agreed that the resellers were not obligated to pay KnowledgeWare for such products unless and until the resellers had resold those products to others ("Contingent Payment Terms"). 
+
+     2. Welch obtained from such Resellers executed purchase order documents for KnowledgeWare products ("Order Letters") that omitted the Return Rights and Contingent Payment Terms that KnowledgeWare had granted to the Resellers.  Instead, the Order Letters set forth an unconditional commitment to pay KnowledgeWare for the ordered products.  Welch sent the Order Letters to KnowledgeWare's order administration department, where they were used to initiate the recognition of sales revenue on KnowledgeWare's books and records. 
+
+     3. Welch prepared and signed separate letters to such Resellers memorializing the Return Rights and Contingent Payment Terms that had been granted to the Resellers ("Side Letters"), but Welch did not send or otherwise disclose the terms of the Side Letters to KnowledgeWare's order administration personnel. 
+
+     4. Welch prepared and signed Transaction Approval Forms ("TAFs") with respect to certain purported sales transactions with Resellers, but nowhere in such TAFs did Welch disclose the existence of the Side Letters or the Return Rights and Contingent Payment Terms.  1    In certain other instances, Welch did not prepare the requisite TAFs with respect to purported sales transactions with Resellers to whom KnowledgeWare had granted Return Rights and Contingent Payment Terms. 
+
+   F. Welch never disclosed the Side Letters, Return Rights or Contingent Payment Terms to KnowledgeWare's order administration personnel or to KnowledgeWare's accounting personnel.  KnowledgeWare recognized revenue on these purported sales transactions, although the existence of the Return Rights and Contingent Payment Terms made KnowledgeWare's recognition of revenue on such transactions improper. 
+
+   G. The Resellers to whom KnowledgeWare granted Return Rights and Contingent Payment Terms in Side Letters executed by Welch never paid KnowledgeWare for the products which, according to the Order Letters and TAFs, the Resellers purportedly had purchased from KnowledgeWare. 
+
+   H. During July and August of 1994, KnowledgeWare reversed a total of approximately $20 million in sales revenue that had been improperly recorded in FY 1994, including revenue that had been recorded on the purported sales transactions described in paragraphs III.E through III.G. 
+
+    Welch's Violations And Unjust Enrichment  
+
+   I. By reason of the conduct and events set forth above, Welch violated, and was a cause of violations of, Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-1 thereunder. 
+
+   J. As a result of the conduct described in paragraphs III.E through III.F, Welch improperly received excess incentive compensation for FY 1994 in the amount of $16,158. 
+
+  IV.  
+
+    CEASE-AND-DESIST ORDER AND ORDER OF DISGORGEMENT  
+
+   Accordingly,  IT IS HEREBY ORDERED,  pursuant to Section 21C(a) of the Exchange Act, that Welch cease and desist from committing or causing any violation, and committing or causing any future violation, of Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-1 thereunder; and 
+
+    IT IS HEREBY FURTHER ORDERED , pursuant to Section 21C(e) of the Exchange Act, that Welch shall, within ninety (90) days of the date of this Order, disgorge to the United States Treasury a total of $25 , 447, representing the sum of the $16,158 in excess incentive compensation that Welch improperly received as a result of the conduct described above plus prejudgment interest thereon of $9 , 289.  Such payment shall be: (A) made by United States postal money order, certified check, bank cashier's check or bank money order payable to the "Securities and Exchange Commission"; and (B) hand-delivered or sent by certified mail (return receipt requested) to the Comptroller, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Stop 0-3, 450 Fifth Street, N.W., Washington, D.C. 20549; and (C) submitted under cover letter that identifies Welch as the Respondent in these proceedings, the file number of these proceedings, a copy of which cover letter and the money order or check shall be sent to Carmen J. Lawrence, Esq., Regional Director, U.S. Securities and Exchange Commission, Northeast Regional Office, 7 World Trade Center, New York, NY 10048, Attn: George N. Stepaniuk, Esq. 
+
+   By the Commission.
+
+                Jonathan G. Katz
+
+               Secretary  
+			     Footnotes  
+   1    Before entering into transactions with terms that differed from KnowledgeWare's standard terms of sale, KnowledgeWare sales personnel were required to obtain approval for such transactions by filling out and submitting TAFs.  KnowledgeWare required that TAFs include all proposed deviations from KnowledgeWare's standard terms of sale and were required to be sent to KnowledgeWare's order administration personnel along with the Order Letters and all other relevant sales documents. 
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1218.txt b/raw/aaer/2000/AAER-1218.txt
new file mode 100644
index 0000000000000000000000000000000000000000..6b3656b3b51d85296dc2cc43c4818b71fee5d57d
--- /dev/null
+++ b/raw/aaer/2000/AAER-1218.txt
@@ -0,0 +1,1374 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Francis A. Tarkenton, Donald P. Addington, Rick W. Gossett, Lee R. Fontaine, William E. Hammersla, III, Eladio Alvarez and Edward Welch 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/482596","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Francis A. Tarkenton, Donald P. Addington, Rick W. Gossett, Lee R. Fontaine, William E. Hammersla, III, Eladio Alvarez and Edward Welch
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Francis A. Tarkenton, Donald P. Addington, Rick W. Gossett, Lee R. Fontaine, William E. Hammersla, III, Eladio Alvarez and Edward Welch
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+  
+Litigation Release No.   16417 / January 24, 2000 
+  
+Accounting and Auditing Enforcement 
+Release No.   1218 / January 24, 2000
+  
+SECURITIES AND EXCHANGE COMMISSION v. FRANCIS A. TARKENTON, DONALD P. ADDINGTON, RICK W. GOSSETT, LEE R. FONTAINE, WILLIAM E. HAMMERSLA, III, ELADIO ALVAREZ and EDWARD WELCH, Civil Action File No. 1:99-CV-2497 (N.D. Ga. September 28, 1999)
+  
+	The Securities and Exchange Commission announced today that it accepted settlement offers made by the last two defendants in the civil injunctive action that the Commission filed on September 28, 1999 in federal court in Atlanta, Georgia against seven former executives of KnowledgeWare, Inc. ("KnowledgeWare"), a computer software company.  The Commission's complaint alleges that the defendants carried out a multi-million dollar financial fraud scheme that materially inflated KnowledgeWare's reported earnings during KnowledgeWare's fiscal year ended June 30, 1994 ("Fiscal Year 1994"), and further alleges that two of those defendants engaged in illegal insider trading.
+  
+Five of the defendants settled the Commission's charges on the same day that the federal court action was filed, and four other former KnowledgeWare executives settled administrative proceedings also commenced that day by the Commission.
+  
+The two remaining defendants in the federal court action are: 
+  
+	 Eladio Alvarez ("Alvarez") , age 42, was a District Sales Manager in KnowledgeWare's Direct Sales Group.
+  
+	 Edward Welch ("Welch") , age 56, was a District Sales Manager in KnowledgeWare's Reseller Channel Sales group.
+  
+The Commission's complaint alleges that the defendants engaged in a fraudulent scheme to inflate KnowledgeWare's financial results to meet sales and earnings projections.  In all, KnowledgeWare reported at least $8 million in revenue from sham software sales.  KnowledgeWare "parked" inventory with software resellers and other supposed customers that were given the right not to pay for the software, either orally or in "side letters" that were kept separate from the other sales documents.  Alvarez  and  Welch  implemented the fraudulent scheme by using "side letters" to create some of these sham software sales and received excess incentive compensation as a result of the sham sales.  In addition,  Alvarez  engaged in illegal insider trading by using material nonpublic information regarding the status of KnowledgeWare's prospective acquisition by Sterling Software, Inc. when he sold all his shares of KnowledgeWare stock in August 1994.
+  
+In his settlement offer,  Alvarez  consented, without admitting or denying the allegations in the complaint, to the issuance of a final judgment permanently enjoining him from (i) committing securities fraud in violation of Section 17(a) of the Securities Act of 1933 or Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5; and (ii) falsifying corporate books and records or engaging in other conduct in violation of Section 13(b)(5) of the Exchange Act or Rule 13b2-1.   Alvarez  also agreed to disgorge, and pay prejudgment interest on, the following two amounts:  (i) $42,354, representing the incentive compensation he received as a result of his violative conduct in connection with the financial fraud scheme; and (ii) $16,368, representing the losses he avoided by illegally selling KnowledgeWare stock. In addition,  Alvarez  agreed to pay civil money penalties totaling $26,368, consisting of a $10,000 penalty in connection with his financial fraud violations and a $16,368 penalty in connection with his insider trading violations.
+  
+The settlement with  Welch  involved the institution of administrative proceedings against  Welch  in lieu of the federal court action.  Pursuant to Welch's settlement offer, the Commission dismissed the federal court action as to  Welch  and instead issued an administrative order finding that  Welch  violated Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-1, and directing Welch to:  (i) cease and desist from committing or causing violations of Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-1; and (ii) disgorge and pay prejudgment interest on $16,158, which amount represents the excess incentive compensation that  Welch  received as a result of his violative conduct.  Welch consented to the issuance of this order without admitting or denying the Commission's findings.  See Securities Exchange Act Release No. 34-42355.
+
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1219.txt b/raw/aaer/2000/AAER-1219.txt
new file mode 100644
index 0000000000000000000000000000000000000000..57e379bc9d8ca05c31f3ad4270e70bdffe90b174
--- /dev/null
+++ b/raw/aaer/2000/AAER-1219.txt
@@ -0,0 +1,1473 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | PricewaterhouseCoopers LLP 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/360086","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              PricewaterhouseCoopers LLP
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        PricewaterhouseCoopers LLP
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              UNITED STATES OF AMERICA
+ Before the
+ SECURITIES AND EXCHANGE COMMISSION
+
+  SECURITIES EXCHANGE ACT OF 1934
+ Release No.  42387 / February 4, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1219 / February 4, 2000
+
+  ADMINISTRATIVE PROCEEDING
+ File No. 3-9809
+  
+
+
+    In the Matter of  PricewaterhouseCoopers LLP, 
+  
+Respondent.	 
+   
+
+
+ 
+ ORDER EXTENDING 
+TIME TO COMPLY  
+
+WITH UNDERTAKING  
+   I. 
+
+   On January 14, 1999, the Securities and Exchange Commission ("Commission"), instituted public administrative proceedings against PricewaterhouseCoopers LLP ("PwC") and accepted PwC's Offer of Settlement pursuant to the Order Instituting Proceedings and Opinion and Order Pursuant to Rule 102(e) of the Commission's Rules of Practice, File No. 3-9809 (January 14, 1999) (the "Order").
+
+  II.
+
+  A. Pursuant to section V.B.4. of the Order, PwC undertook to establish within 30 days a fund of $2.5 million to be used within 12 months, in a manner not unacceptable to the Commission staff, for program(s) to further awareness and education throughout the profession relating to the independence requirements for public accounting firms.  PwC also undertook to, within 30 days of the expiration of the 12 month period, provide the Commission staff with an accounting of all funds paid.  PwC has requested that the deadline for using the fund be extended until January 14, 2001.
+
+  B. In its request, PwC has stated that it has timely established the fund and placed the monies into an interest bearing account.  Accrued interest is kept within the fund and will be used for the educational purposes for which the fund was established.  In addition, an independent oversight committee of three individuals knowledgeable about issues concerning the fund and its use has been and continues to advise PwC regarding appropriate educational programs to establish and implement with financial support from the fund.  PwC and the independent oversight committee have created a proposal for using the education fund.
+
+  III.
+
+   A. The Commission deems it appropriate and in the public interest to extend until January 14, 2001 the deadline for PwC to comply with its undertaking in section V.B.4. of the Order to use the fund and to extend until February 14, 2001, the deadline for PwC to provide an accounting of all funds.  
+
+  B. The Commission further deems it appropriate and in the public interest that interim deadlines be established.  The Commission and PwC agree to the following interim deadlines.  First, by April 1, 2000,  PwC shall prepare materials and create a website for profession-wide interactive training on independence rules.  Second, by September 1, 2000, PwC shall complete educational programs for accounting practitioners.  Third, by December 1, 2000, PwC shall complete educational programs for undergraduate and graduate accounting students and for academic faculties.  These interim deadlines may be modified by the staff at its discretion, and for good cause shown.
+
+  IV.
+
+  A. Accordingly, IT IS HEREBY ORDERED THAT the deadline for PwC to use the fund described in section V.B.4. of the Order is hereby extended until January 14, 2001, and to provide an accounting of all funds is extended until February 14, 2001.
+
+  B. IT IS HEREBY FURTHER ORDERED that, unless modified by the staff at its discretion, and for good cause shown, PwC shall comply with the interim deadlines set forth in this Order Extending Time to Comply with Undertaking for use of the fund established pursuant to the undertaking set forth in section V.B.4. of the Order.
+
+  By the Commission.
+
+              Jonathan G. Katz
+             Secretary
+
+               
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1220.txt b/raw/aaer/2000/AAER-1220.txt
new file mode 100644
index 0000000000000000000000000000000000000000..8a1f6a21ceeb7400c77db8bec182133bd97b57f5
--- /dev/null
+++ b/raw/aaer/2000/AAER-1220.txt
@@ -0,0 +1,1545 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | William L. Clancy 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/360076","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              William L. Clancy
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        William L. Clancy
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              UNITED STATES OF AMERICA       
+   Before the              
+   SECURITIES AND EXCHANGE COMMISSION  
+
+    SECURITIES EXCHANGE ACT OF 1934
+   Release No.  42392 / February 7, 2000 
+
+    ACCOUNTING AND AUDITING ENFORCEMENT 
+   Release No.  1220 / February 7, 2000
+
+    ADMINISTRATIVE PROCEEDING 
+   File No. 3-10139
+
+    
+
+    In the Matter of  WILLIAM L. CLANCY, CPA, 
+  
+Respondent.	 
+   
+
+
+ 
+ ORDER INSTITUTING PUBLIC 
+ADMINISTRATIVE PROCEEDINGS  
+
+AND OPINION AND ORDER 
+PURSUANT TO RULE 102(e) OF  THE   
+OMMISSION'S RULES OF PRACTICE  
+    I. 
+
+      The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest to institute public administrative proceedings against William L. Clancy pursuant to Rule 102(e)  1   of the Commission's Rules of Practice.
+
+      In anticipation of the institution of these proceedings, Clancy has submitted an Offer of Settlement, which the Commission has determined to accept.  Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the facts, findings, or conclusions herein, except that he admits the Commission's jurisdiction over him and the subject matter of these proceedings, Clancy consents to the entry of this Order Instituting Proceedings and Opinion and Order Pursuant to Rule 102(e) of the Commission's Rules of Practice ("Order").
+
+     II. 
+
+      The Commission finds that:  2     A. Respondent 
+
+      Clancy, age 57, is a certified public accountant licensed in Arizona and Kentucky. In audit year 1996, Clacy practiced as a sole practitioner.  In audit year 1997, he was a member of Clancy & Co., P.L.L.C., an accounting firm in Phoenix.  3    Clancy audited the financial statements included in the Form 10-K annual reports filed by C.E.C. Industries Corporation ("CEC") for the fiscal years ended March 31, 1996 and March 31, 1997.  4     B. CEC 
+
+      CEC is a Nevada corporation headquartered in Henderson, Nevada.  CEC has no core business, no sources of significant recurring revenue, and an inadequate system of internal accounting controls.  CEC had only two officers during the relevant period, neither of whom (including its chief financial officer) is a CPA or otherwise has any significant accounting experience.  Throughout the relevant period, approximately half of CEC's outstanding stock was owned by other companies controlled by these two officers of CEC.
+
+      CEC's common stock is registered with the Commission pursuant to sections 12(b) and 12(g) of the Securities Exchange Act of 1934 [15 U.S.C. §78l(b) and (g)], and traded on the NASDAQ Small Cap market from February 12, 1987 until August 17, 1995, when it was delisted for failing to meet NASDAQ's minimum bid price criteria.  CEC's stock has since traded on the OTC bulletin board.  5     C. CEC's False and Misleading Financial Statements 
+
+      CEC's annual reports on Form 10-K for the fiscal years ended March 31, 1996 and March 31, 1997 included financial statements that did not conform with generally accepted accounting principles ("GAAP").  Specifically, the financial statements materially overstated the value of CEC's principal assets and materially overstated substantially all of CEC's revenue.
+
+      1.  CEC's Overstated Assets 
+
+      In or about March 1996, CEC acquired certain assets from O.T.S. Holdings, Inc. ("OTS") in exchange for giving OTS a controlling interest in CEC's stock.  As part of the transaction, the two principal officers of OTS became directors of CEC as well as CEC's sole officers.  Among the assets CEC exchanged with OTS were a collection of paintings by an artist named Sky Jones and a quitclaim deed for a parcel of land in Tennessee.  6    In each of CEC's periodic reports filed with the Commission since the exchange with OTS, CEC's balance sheet has materially overstated these two assets.  Together, these two assets represented approximately 23 percent of the $11.1 million in total assets reported in CEC's Form 10-K for the fiscal year ended March 31, 1996, and approximately 33 percent of the $7.7 million in total assets reported in CEC's Form 10-K for the fiscal year ended March 31, 1997.    Specifically, CEC has reported a value of $1.7 million for its collection of Sky Jones paintings, and a value of $800,000 for its parcel of Tennessee land, which, according to CEC's public filings and statements, contains valuable coal and timber reserves.  The paintings and the land had significantly less value during the relevant period.
+
+     
+
+      In or about December 1996, CEC entered into an exchange transaction through which it acquired shares of contractually restricted stock in a company called Synfuel Technologies, Inc. in exchange for a vacant parcel of land CEC owned in Las Vegas.  In CEC's periodic reports filed with the Commission since acquiring this stock, CEC has mischaracterized the stock as "free trading shares," "trading securities," and "marketable securities," and its balance sheet has materially overstated this asset.  Specifically, CEC reported this stock as a marketable security with a value of $2.7 million as of December 31, 1996, $2.9 million as of March 31, 1997, $1.25 million as of June 30, 1997, $213,625 as of September 30, 1997, and $36,900 as of December 31, 1997.  The Synfuel stock had significantly less value during the relevant period.
+
+      2.  CEC's Overstated Revenues 
+
+      For its fiscal year ended March 31, 1996, CEC reported total revenues of $1.2 million, substantially all of which it recognized from an asset exchange transaction with a related party.  In the transaction, CEC transferred a parcel of vacant land in Utah to the related party in exchange for a promissory note collateralized by CEC preferred stock that was owned by the related party.  CEC received no cash down payment and had no reasonable basis to believe the related party was able to pay for the land.  Recognition of  revenue under such circumstances was not in conformity with GAAP, and thus substantially all of CEC's reported revenue for its fiscal year ended March 31, 1996 was overstated.
+
+      For its fiscal year ended March 31, 1997, CEC reported total revenues of $5.9 million, substantially all of which it recognized from two transactions.  First, CEC recognized $5 million in revenue from the exchange transaction (described above) through which it acquired restricted stock in Synfuel Technologies, Inc. in exchange for a vacant parcel of land in Las Vegas.  Because CEC assigned an overstated value to the Synfuel stock it acquired, and because this transaction was not part of CEC's ongoing major or central operations, recognition of revenue from this transaction was not in conformity with GAAP.  Substantially all of CEC's remaining revenue for its 1997 fiscal year was recognized on a transaction CEC misleadingly described as a "sale" of land in Nevada.  CEC was in default on its $935,000 mortgage debt in connection with the property, and the lender accepted, among other things, a "deed in lieu of foreclosure" on the property.  Recognition of revenue under such circumstances was not in conformity with GAAP, and thus substantially all of CEC's reported revenue for its fiscal year ended March 31, 1997 was materially overstated.
+
+     D. Respondent's Conduct 
+
+      Clancy audited the financial statements included in CEC's annual reports on Form 10-K for the fiscal years ended March 31, 1996 and March 31, 1997.  He signed audit reports containing unqualified opinions for both years certifying that the audits were conducted in accordance with generally accepted auditing standards ("GAAS") and that, in his opinion, CEC's financial statements fairly presented CEC's financial position and results of operations in conformity with GAAP.  However, Clancy's audits were not conducted in accordance with GAAS and, as a result, Clancy failed to detect that CEC's financial statements were not fairly presented in conformity with GAAP.
+
+      In auditing CEC's financial statements, Clancy failed to exercise due professional care and apply the degree of professional skepticism required by GAAS.   ( See  AU §§  230 and 316A.)  CEC was a public company controlled by its two sole officers, with no core business, no significant sources of recurring revenue, and no personnel with any significant accounting experience.  Moreover, most of CEC's principal assets were inherently difficult to value, having been acquired in non-cash transactions in exchange for either CEC stock or other assets (typically vacant land) that CEC had previously acquired with stock.  Despite the enhanced audit risks created by these circumstances, Clancy's audit programs reveal insufficient consideration of these risks and inadequate audit planning designed to address them.
+
+      Clancy also departed from GAAS by failing to obtain sufficient competent evidential matter to support his opinion that CEC's financial statements were presented in conformity with GAAP, particularly given the significance of the relevant assets and transactions to the overall financial position of the company.  ( See  AU §§150 and 326.)  Each of the three overstated assets in question was individually material to CEC's balance sheet at all relevant times, and collectively they represented 71 percent of CEC's total reported assets as of March 31, 1997.  Moreover, the overstated revenues in question accounted for substantially all of CEC's total reported revenues for the two fiscal years at issue.  Nevertheless, Clancy essentially relied on the uncorroborated representations of CEC's two sole officers in satisfying himself that these assets and transactions were accounted for in conformity with GAAP.  Although Clancy also purports to have relied upon specialists in determining the value of the assets in question, his reliance failed to comply with GAAS because he gave insufficient consideration to the experience and qualifications of the specialists and because he did not adequately understand the methods and assumptions used by the specialists.  ( See  SAS Nos. 11 and 73; AU §336.12) 
+
+      For example, with respect to CEC's collection of Sky Jones artwork, Clancy relied on purported appraisals provided to him by CEC's officers to determine the appropriateness of CEC's carryover basis in the asset transferred from OTS.  Those appraisals, however, were prepared by the artist himself using a pseudonym.  Because Clancy did not sufficiently inquire about the experience and qualifications of the appraiser, and did not attempt to understand the appraiser's methods and assumptions, his audit failed to detect that the appraisals were inappropriate for determining value in CEC's financial statement.
+
+      With respect to CEC's Tennessee land with coal and timber reserves, Clancy likewise relied on dubious third-party appraisals provided to him by CEC's officers to determine the appropriateness of CEC's carryover basis in the asset transferred from OTS. Because Clancy did not sufficiently inquire about the experience and qualifications of these appaisers, and did not attempt to understand their methods and assumptions, his audit failed to detect that the appraisals were inappropriate for determining value in CEC's financial statement.
+
+      With respect to CEC's investment in Synfuel Technologies, which alone accounted for almost 40 percent of the total assets CEC reported as of March 31, 1997, Clancy attempted to verify the realizable  value of the asset by calling a market maker to determine his asking price for Synfuel stock and by consulting the prices reflected for Synfuel in the "pink sheets."   Clancy's exclusive reliance on these sources was inadequate because, among other things, CEC was contractually restricted from selling 90% of its Synfuel shares for a period of two years, and in any event there was virtually no liquidity in the market for Synfuel stock.  (Typical market volume for Synfuel was less than 500 shares trading per  month , whereas CEC's investment was 139,824 shares.)  Moreover, CEC's files contained recent Synfuel financial statements disclosing that Synfuel was an insolvent development-stage company with no current assets, operations, or income, that Synfuel's auditors had included a going-concern qualification in their report, and that Synfuel's management believed market trading prices for its stock "would not be representative of the fair value of larger blocks of restricted shares."
+
+      Clancy's audit failures also allowed CEC to report substantial increasing revenues throughout the relevant period from transactions described above.  As independent auditor, Clancy should have detected that CEC's recognition of revenue from these transactions did not conform with GAAP.
+
+     III. 
+
+     FINDINGS 
+
+      Based on the foregoing, the Commission finds that Respondent William L. Clancy engaged in improper professional conduct within the meaning of Rule 102(e)(1)(ii) of the Commission's Rules of Practice.
+
+      IV. 
+
+     ORDER 
+
+      Accordingly,  IT IS HEREBY ORDERED , effective immediately, that:
+
+      A. Respondent William L. Clancy is denied the privilege of appearing or practicing before the Commission as an accountant.
+
+      B. After three (3) years from the date of this order, Respondent may request that the Commission consider his reinstatement by submitting an application (attention: Office of the Chief Accountant) to resume appearing or practicing before the Commission as:
+
+        1. a preparer or reviewer, or a person responsible for the preparation or review, of any public company's financial statements that are filed with the Commission. Such an application must satisfy the Commission that Respondent's work in his practice before the Commission will be reviewed either by the independent audit committee of the public company for which he works or in some other acceptable manner, as long as he practices before the Commission in this capacity; and/or
+
+        2. an independent accountant.  Such an application must satisfy the Commission that:  (a) Respondent, or the firm with which he is associated, is a member of the SEC Practice Section of the American Institute of Certified Public Accountants Division for CPA Firms ("SEC Practice Section"); (b) Respondent, or the firm, has received an unqualified report relating to his, or the firm's, most recent peer review conducted in accordance with the guidelines adopted by the SEC Practice Section; and (c) As long as Respondent appears or practices before the Commission as an independent accountant he will remain either a member of the SEC Practice Section or associated with a member firm of the SEC Practice Section, and will comply with all applicable SEC Practice Section requirements, including all requirements for periodic peer reviews, concurring partner reviews, and continuing professional education.
+
+      C. The Commission's review of an application by Respondent to resume appearing or practicing before the Commission may include consideration of, in addition to the matters referenced above, any other matters relating to Respondent's character, integrity, professional conduct, or qualifications to appear or practice before the Commission.
+
+      By the Commission.
+
+                Jonathan B. Katz
+
+               Secretary
+
+  
+   Footnotes 
+ 
+
+
+    1     Rule 102(e)(1) of the Commission's Rules of Practice, 17 C.F.R. §201.102(e), provides in pertinent part:
+
+  The Commission may censure a person or deny, temporarily or permanently, the privilege of appearing or practicing before it in any way to any person who is found by the Commission after notice and opportunity for a hearing in the matter . . . to  have engaged in . . . improper professional conduct.
+
+    2    The findings herein are not binding on anyone other than Clancy.
+
+    
+
+    3     No other professionals in the firm were involved in the audits in question.
+
+    4    CEC has not filed a Form 10-K annual report for the fiscal year ended March 31, 1998 or the fiscal year ended March 31, 1999.
+
+   
+
+    5     On September 28, 1999, the Commission filed a securities fraud action in the United States District Court for the District of Columbia against CEC and its two officers.  The Commission's complaint charged all defendants with fraud violations under Section 17(a) of the Securities Act of 1933, Section 10(b) of the Exchange Act, and Exchange Act Rule 10b-5.  It further charged CEC with violating the reporting and bookkeeping provisions of Exchange Act Section 13 and the rules thereunder, and CEC's two officers with falsifying books and records and failing to implement internal accounting controls in violation of Exchange Act Section 13(b)(5) and Exchange Act Rule 13b2-1.  The Commission is seeking permanent injunctions against all defendants, a restatement of past financial statements and the prompt filing of current information by C.E.C., civil penalties against CEC's two officers, and an order prohibiting the officers from serving as directors or officers of any public companies.
+
+    6     OTS was audited by an auditor unrelated to Clancy.
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1221.txt b/raw/aaer/2000/AAER-1221.txt
new file mode 100644
index 0000000000000000000000000000000000000000..3623a0c37542ceb928bb4e3176c549e1bf7cb932
--- /dev/null
+++ b/raw/aaer/2000/AAER-1221.txt
@@ -0,0 +1,1470 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | H.J. Meyers & Co., Inc., James A. Villa and James C. Witzel 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/360066","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              H.J. Meyers & Co., Inc., James A. Villa and James C. Witzel
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        H.J. Meyers & Co., Inc., James A. Villa and James C. Witzel
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+       SECURITIES EXCHANGE ACT OF 1934  Release No. 42394 / February 7, 
+      2000 
+        ACCOUNTING AND AUDITING ENFORCEMENT  Release No. 1221 / February 7, 
+      2000 
+        Administrative Proceedings File No. 3-10141 
+        COMMISSION STAFF CHARGES THAT H.J. MEYERS & CO., INC. VIOLATED NET 
+      CAPITAL RULES 
+        The Commission announced an Order Instituting Public Administrative 
+      Proceedings (Order) against H.J. Meyers & Co., Inc., James A. Villa 
+      and James C. Witzel. The Order alleges that from June through September 
+      1998, H. J. Meyers & Co., Inc. (H.J. Meyers), through its President, 
+      James A. Villa (Villa), and its Chief Financial Officer (CFO), James C. 
+      Witzel (Witzel), failed to disclose net capital deficiencies ranging from 
+      $360,000 to $4.5 million. During this time period, H.J. Meyers concealed 
+      its net capital deficiencies through a series of fabricated journal 
+      entries. H.J. Meyers' net capital deficiencies were caused, in part, by 
+      the firm's failure to record a liability in connection with a $2.5 million 
+      loan received from an outside investor and paid to HJM Group (Group), H.J. 
+      Meyers' parent company. H.J. Meyers and Group were jointly and severally 
+      liable for the loan. 
+        The Order alleges that although the loan documents were signed in June, 
+      the loan proceeds were not received until July 1998. H.J. Meyers' records, 
+      however, were improperly backdated to show that it received the cash in 
+      June. As a consequence, H.J. Meyers overstated cash by $2.25 million in 
+      June. The Order further alleges that the $2.5 million loan was never 
+      recorded as a liability on H.J. Meyers' books. 
+        The Order alleges that H.J. Meyers and Group were to pledge 130,000 
+      shares of stock as collateral for the loan. In June, H.J. Meyers 
+      transferred these shares to Group. In July, Group gave the shares to the 
+      investor, who placed the shares in a safe deposit box in a bank. Although 
+      these 130,000 shares remained in the safe deposit box, they erroneously 
+      reappeared as an asset on H.J. Meyers' books in July 1998. As a result of 
+      the above transactions, H.J. Meyers overstated its assets and thereby 
+      concealed net capital deficiencies in June, July and August 1998. 
+        The Order alleges that Villa and Witzel caused and willfully aided and 
+      abetted H.J. Meyers' violations. The Order alleges that Villa was 
+      personally involved in the loan 
+        negotiations and that he executed the various loan agreements on behalf 
+      of both H.J. Meyers and Group. Villa's execution of the $2.5 million loan 
+      agreements on behalf of H.J. Meyers caused the firm to incur a liability 
+      that resulted in a net capital deficiency. The Order also alleges that 
+      Witzel, the firm's CFO and Financial Operations Principal (FINOP) 
+      completed H.J. Meyers' monthly FOCUS reports during the time period at 
+      issue. The Order also alleges that Witzel, or others under his 
+      supervision, was responsible for backdating H.J. Meyers' books for June, 
+      the firm's failure to report the $2.5 million loan and the firm's improper 
+      inclusion of the 130,000 shares on H.J. Meyers' books after the shares had 
+      been transferred to the firm's lender. 
+        A hearing before an administrative law judge will be scheduled to 
+      determine whether the allegations in the Order are true and to determine 
+      what remedial action, if any, is appropriate in the public interest. 
+         
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1223.txt b/raw/aaer/2000/AAER-1223.txt
new file mode 100644
index 0000000000000000000000000000000000000000..7080ef4db1af200596b1f0e98b8923b27cd9871e
--- /dev/null
+++ b/raw/aaer/2000/AAER-1223.txt
@@ -0,0 +1,1501 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Joseph M. Morris, CPA 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/360051","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Joseph M. Morris, CPA
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Joseph M. Morris, CPA
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No. 42410 / February 10, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT 
+ Release No. 1223 / February 10, 2000
+
+  ADMINISTRATIVE PROCEEDING 
+ File No. 3-10144
+  
+
+
+     In the Matter of  JOSEPH M. MORRIS, CPA,  
+  
+Respondent.	 
+   
+
+
+ 
+ ORDER INSTITUTING PUBLIC 
+ PROCEEDING, MAKING FINDINGS AND  
+ORDER PURSUANT TO RULE 102(e) 
+OF THE COMMISSION'S       
+RULES OF PRACTICE
+ 
+   I.
+
+    The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest to institute an administrative proceeding against Respondent Joseph M. Morris pursuant to paragraph (3) of Rule 102(e) of the Commission's Rules of Practice [17 C.F.R. § 201.102(e)].  1    In anticipation of the institution of this proceeding, Morris has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the Commission's findings contained herein, except that he admits the jurisdiction of the Commission over him and over the matters set forth in this Order and admits the Commission's finding that a Final Judgment of Permanent Injunction has been entered against him as set forth in Section II, Morris consents to the entry of findings and the imposition of the remedial sanctions set forth below.
+
+    II.
+
+    The Commission finds the following:   2    A. At all relevant times, Morris, a certified public accountant, was the Chief Financial Officer of Itex Corporation.
+
+    B. Itex Corporation is a Portland, Oregon based barter exchange business whose stock was listed on the NASDAQ Small Cap market until its delisting in December 1998.
+
+    C. On September 27, 1999, the Commission filed a complaint against Morris and others in the United States District Court for the District of Oregon.  SEC v. Itex Corporation, Terry L. Neal, Michael T. Baer, Graham H. Norris, Cynthia Pfaltzgraff and Joseph M. Morris , CIV. NO. 99-1361-BR (D.Ore.).  The Commission's complaint alleged, among other things, that:  (1) from at least January 1996 through February 1998, Morris, as CFO of Itex, knowingly or recklessly participated in material overstatement of  Itex's assets, revenues and earnings in its financial statements, and failed to disclose numerous suspect and in many cases sham barter deals between Itex and various related party transactions; (2) Morris sold Itex stock at times when he knew or was reckless in not knowing that the publicly disclosed information about Itex was materially false and misleading; (3) Morris knowingly circumvented and failed to implement internal accounting controls; and (4) Morris made and caused others to make materially false and misleading statements and omissions to Itex's auditors in connection with audits for fiscal years ended July 31, 1996 and 1997.
+
+    D. On January 24, 2000 a final judgment was entered by the United States District Court for the District of Oregon that: (i) permanently enjoins Morris from violating Section 17(a) of the Securities Act of 1933 ("Securities Act") and Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5, 13b2-1 and 13b2-2 thereunder, (ii) orders Morris to disgorge unjust enrichment of $45,380 and prejudgment interest thereon, provided, however, that payment of all of that disgorgement and all of the prejudgment interest is waived; and (iii) pursuant to Section 20(e) of the Securities Act, Section 21(d)(2) of the Exchange Act and the Court's equitable jurisdiction, prohibits Morris for a period of five years from acting as an officer or director of any issuer that has a class of securities registered pursuant to Section 12 of the Exchange Act or that is required to file reports pursuant to Section 15(d) of the Exchange Act. Morris consented to entry of the judgment without admitting or denying the allegations of the Commission's complaint.
+
+    E.  On July 30, 1998 , the Commission filed a complaint against Morris and others in the United States District Court for the District of Colorado.   SEC v. Ronald J. Hottovy, Jimmy Duckworth, Joseph M. Morris and Eugene A. Breitenbach , Civil Action No. 98-S-1636 (D. Col.).  The Commission's complaint alleged, among other things, that during 1993 through 1995, Morris, in his position as corporate controller of Scientific Software-Intercomp, Inc. ("SSI"), knowingly or recklessly participated in the material overstatement of  SSI's revenue and earnings.  On January 21, 2000, the Court , by consent of the parties, dismissed with prejudice the matter as to Morris in light of  the injunction entered against Morris in  SEC v. Itex Corporation et al. 
+
+    III.
+
+    Based on the foregoing, the Commission deems it appropriate and in the public interest to accept Morris's Offer of Settlement and accordingly,
+
+    IT IS HEREBY ORDERED, effective immediately, that Morris is denied the privilege of appearing or practicing before the Commission as an accountant.
+
+    IT IS FURTHER ORDERED, that five years from the date of this Order, Morris may apply to the Commission by submitting an application to the Office of the Chief Accountant which requests that he be permitted to resume appearing or practicing before the Commission as:
+
+    a.  a preparer or reviewer, or a person responsible for the preparation or review, of financial statements of a public company to be filed with the Commission upon submission of an application satisfactory to the Commission in which Morris undertakes that, in his practice before the Commission, his work will be reviewed by the independent audit committee of the company for which he works or in some other manner acceptable to the Commission;
+
+    b. an independent accountant upon submission of an application containing a showing satisfactory to the Commission that:
+
+      (i) Morris, or any firm with which he is or becomes associated in any capacity, is and will remain a member of the SEC Practice Section of the American Institute of Certified Public Accountants Division for CPA Firms ("SEC Practice Section") as long as he appears or practices before the Commission as an independent accountant;
+
+      (ii) Morris or the firm has received an unqualified report relating to his or the firm's most recent peer review conducted in accordance with the guidelines adopted by the SEC Practice Section; and
+
+      (iii) Morris will comply with all applicable SEC Practice Section requirements, including all requirements for periodic peer reviews, concurring partner reviews, and continuing professional education, as long as he appears or practices before the Commission as an independent accountant; and
+
+    IT IS FURTHER ORDERED, that the Commission's review of any request or application by Morris to resume appearing or practicing before the Commission may include consideration of, in addition to the matters referenced above, any other matters relating to his character, integrity, professional conduct or qualifications to appear or practice before the Commission.
+
+    By the Commission.
+
+                Jonathan G. Katz
+
+               Secretary
+
+                   
+   Footnotes 
+
+
+   1   
+Rule 102(e) provides, in pertinent part:
+  
+(3)(i)  The Commission, with due regard to the public interest and without preliminary hearing, may, by order . . . suspend from appearing or practicing before it any . . . accountant . . . who . . . has been by name:
+  
+		(A)  Permanently enjoined by any court of competent jurisdiction by reason of his misconduct in an action brought by the Commission, from violation or aiding and abetting the violation of any provision of the Federal securities laws (15 U.S.C. §§ 77a--80b-20) or of the rules and regulations thereunder . . . . 
+  
+(iv)  . . . A person who has consented to the entry of a permanent injunction . . . without admitting the facts set forth in the complaint shall be presumed for all purposes under this paragraph (3) to have been enjoined by reason of the misconduct alleged in the complaint.
+
+
+    2     The findings herein are made pursuant to the Respondent's Offer and are not binding on any other person or entity in this or any other proceeding.
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1224.txt b/raw/aaer/2000/AAER-1224.txt
new file mode 100644
index 0000000000000000000000000000000000000000..d47463399543fb31befe7b2cf3bf65c881304cee
--- /dev/null
+++ b/raw/aaer/2000/AAER-1224.txt
@@ -0,0 +1,1367 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | ITEX Corporation, Terry L. Neal, Michael T. Baer, Graham H. Norris, Cynthia Pfaltzgraff and Joseph M. Morris 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/482661","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              ITEX Corporation, Terry L. Neal, Michael T. Baer, Graham H. Norris, Cynthia Pfaltzgraff and Joseph M. Morris
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        ITEX Corporation, Terry L. Neal, Michael T. Baer, Graham H. Norris, Cynthia Pfaltzgraff and Joseph M. Morris
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+
+  LITIGATION RELEASE NO. 16430 / February 10, 2000
+  ACCOUNTING AND AUDITING  ENFORCEMENT RELEASE NO. 1224 / February 10, 2000 
+
+  SEC V. ITEX CORPORATION, TERRY L. NEAL, MICHAEL T. BAER, GRAHAM H. NORRIS, CYNTHIA PFALTZGRAFF AND JOSEPH M. MORRIS, CV 99-1361 BR (D. Ore. September 27, 1999)
+
+  SEC OBTAINS PERMANENT FRAUD INJUNCTION, OFFICER AND DIRECTOR BAR, AND ACCOUNTING PRACTICE BAR AGAINST JOSEPH M. MORRIS
+
+  The Securities and Exchange Commission today announced that on January 24, 2000, the United States District Court for the District of Oregon permanently enjoined Joseph M. Morris from committing securities fraud.  In the complaint, the Commission alleged that, among other things, as chief financial officer of Itex Corporation, Morris knowingly or recklessly participated in the material overstatement of Itex's assets, revenues and earnings in its financial statements, and failed to disclose numerous suspect and in many cases sham barter deals between Itex and various related parties.  The complaint also alleged that Morris also sold Itex stock at times when he knew or was reckless in not knowing that Itex's publicly disclosed financial information was materially false or misleading.  The complaint alleged that Morris's conduct was part of a larger scheme in which defendant Terry Neal, Itex's founder and control person, orchestrated and implemented a broad-ranging fraudulent scheme to make materially false and misleading disclosures about the company's business and to conceal numerous suspect and in many cases sham barter deals between Itex and various mysterious offshore entities related to and/or controlled by Neal.  
+
+    Morris consented, without admitting or denying the Commission's allegations, to the entry of a final judgment permanently enjoining him from violating the antifraud, books and records, internal controls, and false statements to auditors provisions (Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 and Rules 10b-5, 13b2-1 and 13b2-2 thereunder).  The final judgment further bars Morris for five years from acting as an officer or director of a public company.  The judgment requires Morris to disgorge $45,380 and prejudgment interest thereon, but waives payment based on Morris's demonstrated inability to pay.
+
+    Based on the injunction, the Commission entered an administrative order barring Morris from practicing before the Commission as an accountant, with a right to reapply after five years.  In the Matter of Joseph Morris, Admin. Proc. No. 3-10144 (February 10, 2000).
+
+    Morris had previously been sued by the Commission in a securities fraud action in the District of Colorado relating to the issuer Scientific Software-Intercomp, Inc. ("SSI").   SEC v. Ronald Hottovy, Jimmy Duckworth, Joseph M. Morris and Eugene A. Breitenbach, Civil Action NO. 98-S-1636 (D. Col.), Litigation Release No. 15824 (July 30, 1998).  As part of Morris's settlement with the Commission, the pending SSI complaint against him was dismissed.
+
+    The Commission is continuing its litigation against the remaining defendants in the Itex litigation (see Litigation Release No. 16305), and against the remaining defendant in the SSI litigation (see Litigation Release Nos. 15824, 16351). 
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1225.txt b/raw/aaer/2000/AAER-1225.txt
new file mode 100644
index 0000000000000000000000000000000000000000..9870f1fd9d7f3f4751a5e171fde72f42c39f3014
--- /dev/null
+++ b/raw/aaer/2000/AAER-1225.txt
@@ -0,0 +1,1560 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Joseph E. Williams 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/360046","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Joseph E. Williams
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Joseph E. Williams
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+
+
+ SECURITIES ACT OF 1933
+ Release No. 7798 / February 10, 2000
+
+  SECURITIES EXCHANGE ACT OF 1934
+ Release No. 42412 / February 10, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No. 1225 
+
+  Administrative Proceeding
+ File No. 3-10145
+
+  
+
+
+    In the Matter of  JOSEPH E. WILLIAMS,  
+  
+Respondent.	 
+   
+
+ 
+ORDER INSTITUTING CEASE- 
+AND-DESIST PROCEEDINGS 
+PURSUANT TO SECTIONS 8A 
+OF THE SECURITIES ACT OF         
+1933 AND 21C OF THE 
+SECURITIES EXCHANGE ACT 
+OF 1934 AND FINDINGS AND 
+ORDER OF THE COMMISSION  
+   
+
+
+     I. 
+
+    The Commission deems it appropriate that public administrative proceedings be, and they hereby are, instituted pursuant to Sections 8A of the Securities Act of 1933 ("Securities Act") and 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Joseph E. Williams  ("Respondent").
+
+   II. 
+
+    In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of these proceedings and any other proceeding brought by or on behalf of the Commission or to which the Commission is a party, Respondent, without admitting or denying the matters set forth herein, consents to the issuance and entry of this Order Instituting Cease-and-Desist Proceedings Pursuant to Sections 8A of the Securities Act of 1933 and 21C of the Securities Exchange Act of 1934 and Findings and Order of the Commission ("Order").  1     III. 
+
+  On the basis of this Order and Respondent's Offer, the Commission finds the following:
+
+   A.  Respondent  
+
+  Respondent, age 45, is the former Controller of Fabri-Centers of America, Inc. ("Fabri-Centers"), now known as Jo-Ann Stores, Inc.  At all relevant times, Respondent was a senior vice president and Controller of Fabri-Centers and reported to the Chief Financial Officer.
+
+   
+
+   B.  The Issuer  
+
+  Jo-Ann Stores, Inc. ("Jo-Ann Stores"), an Ohio corporation with principal executive offices in Hudson, Ohio, is now the largest national category-dominant retailer serving the retail fabric and craft industry, operating approximately 1,050 retail stores in 49 states primarily under the names Jo-Ann Fabrics and Crafts and Jo-Ann etc.  2    These stores feature a broad line of apparel, quilting and craft fabrics and sewing-related products, home decorating fabrics, floral, craft and seasonal products.  Jo-Ann Stores' common stock is registered with the Commission pursuant to Section 12(b) of the Exchange Act and is listed on the New York Stock Exchange.  3     C.  Background  
+
+  This matter stems from Fabri-Centers' application of the "gross profit method" of accounting during periods immediately before and after a $74.75 million debt offering in March 1992.  Under the gross profit method, Fabri-Centers estimated its store inventory levels, gross profit and earnings by applying pre-determined margin estimates, referred to as "pegs," against reported sales.  The peg estimates were based on historical operating results for each store and were accurate predictors of future profits only insofar as operating results did not change. Under the gross profit method, actual operating results for any given store could only be determined by the taking of a physical inventory and then reconciling those results against the peg estimates.  Fabri-Centers' policy was to conduct store physical inventories on a cycle basis, endeavoring to inventory each store once per fiscal year.  At the beginning of each month, Fabri-Centers began comparing the previous month's physical inventory counts with amounts predicted by the pegs; this reconciliation resulted in either an inventory "shrink" or "pick-up" for each store.  The merchandise cost of this variance was then determined and recorded in the company's books and records for the following fiscal month.  In periods between physical inventories, Fabri-Centers reported a store's financial performance based on these margin/cost estimates.
+
+  Fabri-Centers maintained a gross profit reserve account to offset the difference between the pegged inventory levels carried on its books and records and management's best estimate of actual inventory present in the company's stores.  At the end of each accounting period (quarterly), Fabri-Centers typically reviewed the gross profit reserve by comparing current inventory results and margin trends against the pegged cost/margin estimates, including certain judgmental factors about the state of the Company's business.
+
+   D.  Events Leading to the Debt Offering  
+
+  In the fourth quarter of the fiscal year ended February 1, 1992 ("Fiscal 1992"), Fabri-Centers employed more aggressive pricing strategies than it had during the same period in the prior fiscal year.  Fabri-Centers' policy was to meet or beat competitive price points and not to lose market share.  In November and December, 1991 (i.e., in the fourth quarter of Fiscal 1992), during its busy holiday season, Fabri-Centers took and recorded only eight store physical inventories.  Accordingly, and because the company's business was seasonal, for the fiscal year ended February 1, 1992, 72.6 percent of Fabri-Centers' sales were uninventoried.
+
+  In January 1992, Fabri-Centers resumed taking inventories on a cycle basis, and completed physical inventories at 67 of the company's 664 stores in operation at the time.  On February 18, 1992, Fabri-Centers' independent auditors issued a "clean" opinion on the company's year-end financial statements without having reviewed results from the January 1992 physical store inventories.  On February 19, 1992, less than three weeks after its fiscal year end, Fabri-Centers issued an earnings announcement.  On February 20, 1992, the company filed with the Commission its Annual Report on Form 10-K.  Both the February earnings announcement and Form 10-K reported record sales and earnings for the fiscal year and fourth quarter ended February 1, 1992.  Fabri-Centers also reported a significant improvement in gross profit margins.  Simultaneously, Fabri-Centers filed an S-3 registration statement for $65 million in convertible subordinated debentures with an over-allotment option of $9.75 million.
+
+  In February 1992, Respondent and other Fabri-Centers' personnel began receiving negative results from the January physical inventories.  By March 2, 1992, Fabri-Centers' accounting personnel had provided Respondent and others with summaries of all 67 January inventories that identified a gross profit shortfall, or shrink, of approximately $1.1 million for just those stores.  On March 4, 1992, Fabri-Centers requested that the SEC accelerate the effective date of the S-3 registration statement to March 5, 1992.  The SEC granted that acceleration request, and on the same day, March 5, 1992, Fabri-Centers recorded in its general ledger results from the 67 January inventories, realizing a gross profit shortfall, or shrink, of $1,102,363.
+
+    Trends from the January inventory results were significant because of the seasonably higher fourth quarter sales and the limited number of inventories taken during that period.  Had the company taken into consideration the $1.1 million shortfall shown in the January 1992 store physical inventories and extrapolated those results to all uninventoried sales, it would have been clear that the year-end gross profit reserve was materially inadequate.  The failure to adjust the gross profit reserve caused the company's fourth quarter operating results and financial statements for the just-ended fiscal year to be erroneous and thus to be materially misstated.
+
+       E. Fabri-Centers' Operating Results Continue to  
+
+        Worsen in First Quarter of Fiscal 1993        
+
+    In February 1992, Fabri-Centers completed physical inventories at another 65 retail stores. On April 9, Fabri-Centers recorded results of the 65 February physical store inventories in its general ledger, recognizing another $1.29 million of inventory shrink.  These most recent 132 January and February physical store inventories had by this time identified a $2.4 million disparity between actual inventory levels and the peg estimates carried on the company's books.
+
+    In April, 1992, Respondent participated in a meeting with other members of company management in discussing how to respond to lower-than-expected gross profit margins.  As part of these discussions, Respondent and other company officers became aware of the Company's internal financial model prepared by the CFO that projected a $14 million shrink in Fiscal 1993 if the current rate of shrink continued.
+
+    Fabri-Centers took physical inventories at another 76 stores in March 1992.  Results of these inventories were summarized on a rolling basis throughout April 1992.  On May 7, 1992, Fabri-Centers recorded results of the 76 March physical store inventories in its general ledger, recognizing another $1.66 million of inventory shrink.  By May 7, 1992, the company had identified a variance between actual inventory levels and the peg estimates carried on the company's books of over $4 million for the 208 stores inventoried in January, February and March 1992.
+
+    Fabri-Centers' first quarter of Fiscal 1993 ended on May 2, 1992.  On or about May 12, 1992, the CFO and Respondent directed Fabri-Centers' merchandise accounting department to record a $2.0 million reduction to the company's gross profit reserve.  This reduction, coming at a time when the shrink information indicated that the company should have estimated a higher gross profit reserve to account for the difference between pegged estimates and anticipated results, caused the company to overstate gross profit, inventory levels and earnings in its books and records for the first quarter of fiscal 1993.
+
+    On Saturday, May 16, 1992, Fabri-Centers' CFO prepared a hand-written memo addressed to the company's Executive Committee, with a copy to Respondent (who was not a member of the Executive Committee).  The memo stated that:  (1) inventory variances were averaging $20,000 per store, and (2) the company should have seen the percentage shortfall at Fiscal 1992 year-end. 
+
+     F. Fabri-Centers' Materially False  
+
+        and Misleading First Quarter Form 10-Q  
+
+    On June 16, 1992, Fabri-Centers filed with the Commission its Form 10-Q for the first quarter of Fiscal 1993.  Due to the company's continuing failure to record appropriate amounts in the gross profit reserve, the financial statements contained in the first quarter Form 10-Q materially misstated inventory levels, gross profit and pre-tax earnings.  Respondent reviewed and approved the financial statements contained in the company's first quarter Form 10-Q.
+
+     IV. 
+
+      OPINION  
+
+     A.  Applicable Law  
+
+    Section 17(a)(2) of the Securities Act prohibits an issuer from obtaining money by means of an untrue statement or material omission in connection with the offer or sale of securities.  Section 17(a)(3) prohibits any transaction, practice or course of business which would operate as a fraud or deceit upon actual or potential purchasers.  Violations of Sections 17(a)(2) and (3) do not require proof of scienter and can be proven by negligent conduct.   Aaron v. SEC , 446 U.S. 680, 694 (1980).
+
+    Section 13(a) of the Exchange Act requires that issuers with securities registered pursuant to Section 12 of the Exchange Act file periodic and other reports with the Commission containing such information as the Commission prescribes by rule.  Rule 13a-1 requires issuers to file annual reports and Rule 13a-13 requires issuers to file quarterly reports.  Implicit within the reporting requirements of Section 13(a), Rules 13a-1 and 13a-13 is an obligation that the information reported be true and correct.  See,   e.g. ,  SEC v. Savoy Industries, Inc. , 587 F.2d 1149, 1165 (D.C. Cir. 1978),  cert. denied , 440 U.S. 913 (1979).  Additionally, Rule 12b-20 requires issuers to include such further material information necessary to make these periodic reports not misleading under the circumstances they were made. 
+
+    Rule 13b2-1 under the Exchange Act prohibits the direct or indirect falsification, or causing to be falsified, of any book, record or account that issuers are required to maintain pursuant to the Exchange Act.
+
+    Evidence of negligence is sufficient to establish that a person caused a violation of Section 13(a), Rule 13a-1, Rule 13a-13 and Rule 12b-20 or violated Rule 13b2-1.
+
+     B.  Violations by Respondent  
+
+    Respondent violated Sections 17(a)(2) and (3) of the Securities Act, and caused violations of Section 13(a) of the Exchange Act and Exchange Act Rules 13a-1 and 12b-20 in connection with the Form 10-K and the S-3 Registration Statement. Respondent violated Rule 13b2-1 of the Exchange Act by permitting the company's gross profit reserve and earnings to be recorded without properly increasing the gross profit reserve in the first quarter of Fiscal 1993.  Respondent caused the company to violate Section 13(a) of the Exchange Act and Rules 13a-1, 13a-13 and 12b-20 thereunder when he reviewed and approved the financial statements for the company's Form 10-K for Fiscal 1992 and for the Form 10-Q for the first quarter of Fiscal 1993.
+
+     V. 
+
+      FINDINGS  
+
+    The Commission finds that Respondent violated Sections 17(a)(2) and (3) of the Securities Act and Exchange Act Rule 13b2-1 and caused violations of Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder.
+
+     VI. 
+
+      OFFER OF SETTLEMENT  
+
+    Respondent has submitted an Offer in this proceeding which the Commission has determined to accept.  Respondent, in his Offer, consents to this Order making findings, as set forth above, and ordering Respondent to cease and desist from committing or causing any violation of, and committing or causing any future violation of, Sections 17(a)(2) and (3) of the Securities Act, Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1, 13a-13 and 13b2-1 thereunder.
+
+     VII. 
+
+      ORDER  
+
+    Accordingly,  IT IS HEREBY ORDERED , pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act, that Respondent cease and desist from committing or causing any violation of, and committing or causing any future violation of, Sections 17(a)(2) and (3) of the Securities Act, Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1, 13a-13 and 13b2-1 thereunder.
+
+    By the Commission.
+
+                
+                  Jonathan G. Katz
+                 Secretary
+
+  
+   Footnotes 
+ 
+
+    1     Respondent also consented to the entry of an order requiring him to pay a $25,000 civil penalty, $23,640.00 in disgorgement and $20,976.33 in prejudgment interest thereon.   SEC v. Fabri-Centers of America, Inc. Robert L. Norton and Joseph E. Williams , Case No. 5:97CV1216 (N.D. Ohio)
+
+    2     At fiscal year-end 1992, Fabri-Centers operated 664 retail stores primarily under the names Jo Ann Fabrics and New York Fabrics and Crafts.
+
+    3     On February 18, 1997, the Commission filed a complaint in the United States District Court for the District of Columbia against Fabri-Centers, the Respondent, and Fabri-Centers' former Chief Financial Officer alleging violations of Section 17(a) of the Securities Act and Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B) and 13(b)(5) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13, 13b2-1 and 13b2-2 thereunder.  Fabri-Centers consented, without admitting or denying the allegations of the complaint, to the entry of a final judgment of permanent injunction and an order that the company disgorge $3.28 million.  See   SEC v. Fabri-Centers of America, Inc., et. al. , Civ. Act. No. 1:97CV00319. (February 18, 1997)  The action was subsequently transferred to the United States District Court for the Northern District of Ohio, Case No. 5:97CV1216.  Also on February 18, 1997, Fabri-Centers' CEO and President consented, without admitting or denying the allegations, to the entry of a cease-and-desist order finding that he violated or caused violations of Sections 17(a)(2) and (3) of the Securities Act and Section 13(a) of the Exchange Act and Exchange Act Rules 12b-20, 13a-13 and 13b2-2.   In the Matter of Alan D. Rosskamm , Admin. Proc. No. 3-9248 (February 18, 1997).  Concurrently with the issuance of this Order, Fabri-Centers' former Chief Financial Officer consented, without admitting or denying the allegations, to the entry of a separate cease-and-desist order finding that he violated Sections 17(a)(2) and (3) of the Securities Act and Exchange Act Rules 13b2-1 and 13b2-2 and that he caused the company to violate Section 13(a) of the Exchange Act and Exchange Act Rules 12b-20, 13a-1 and 13a-13.   In the Matter of Robert L. Norton,  Admin. Proc. No. 3-10143 (February 7, 2000).  Norton also consented to entry of a court order requiring him to pay a $50,000 civil penalty, $46,916.68 in disgorgement and $41,630.29 in prejudgment interest thereon.   SEC v. Fabri-Centers of America, Inc. Robert L. Norton and Joseph E. Williams , Case No. 5:97CV1216 (N.D. Ohio)
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1226.txt b/raw/aaer/2000/AAER-1226.txt
new file mode 100644
index 0000000000000000000000000000000000000000..47dd0f5830ebbfad365fcfabe67f3d6340995875
--- /dev/null
+++ b/raw/aaer/2000/AAER-1226.txt
@@ -0,0 +1,1362 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Fabri-Centers of America, Inc., Robert L. Norton and Joseph E. Williams 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/482666","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Fabri-Centers of America, Inc., Robert L. Norton and Joseph E. Williams
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Fabri-Centers of America, Inc., Robert L. Norton and Joseph E. Williams
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+  LITIGATION RELEASE NO.   16431  /  February 10, 2000
+
+  ACCOUNTING AND AUDITING 
+ENFORCEMENT RELEASE NO.  1226  /  February 10, 2000  
+  
+SECURITIES AND EXCHANGE COMMISSION v. FABRI-CENTERS OF AMERICA, INC., ROBERT L. NORTON and JOSEPH E. WILLIAMS, Civil Action No. 5:97CV1216 (N.D. Ohio) (filed February 18, 1997)
+  
+	On February 10, 2000, the Commission issued an Order pursuant to Sections 8A of the Securities Act of 1933 (Securities Act) and 21C of the Securities Exchange Act of 1934 (Exchange Act) against Joseph E. Williams, requiring him to cease and desist from committing or causing violations of, or future violations of  Sections 17(a)(2) and (3) of the Securities Act, Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1, 13a-13, and 13b2-1 thereunder.  Williams is the former senior vice president and Controller of Fabri-Centers of America, Inc. (Fabri-Centers), now known as Jo-Ann Stores, Inc.  
+  
+	This matter stems from Fabri-Centers' application of the "gross profit method" of accounting during periods immediately before and after a $74.75 million debt offering in March 1992.  Williams, without admitting or denying the allegations in the Commission's Order, consented to the entry of the Order finding that he:  (1) violated Sections 17(a)(2) and 17(a)(3) of the Securities Act in connection with Fabri-Centers' 1992 year-end Form 10-K and the S-3 Registration Statement for the debt offering; (2) violated Rule 13b2-1 of the Exchange Act by permitting the company's gross profit reserve and earnings to be recorded without properly increasing the gross profit reserve in the first quarter of Fiscal 1993; and (3) caused the company to violate Section 13(a) of the Exchange Act and Rules 13a-1, 13a-13 and 12b-20 thereunder when he reviewed and approved the financial statements for the company's Form 10-K for Fiscal 1992 and for the company's Form 10-Q for the first quarter of Fiscal 1993.
+  
+	As part of the settlement, Williams has consented to the entry of a court order requiring him to pay a $25,000 civil penalty, $23,640.00 in disgorgement and $20,976.33 in prejudgment interest thereon.
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1228.txt b/raw/aaer/2000/AAER-1228.txt
new file mode 100644
index 0000000000000000000000000000000000000000..8a2f7d89ff18f6a6798f28a82539d5ce4da230e3
--- /dev/null
+++ b/raw/aaer/2000/AAER-1228.txt
@@ -0,0 +1,1570 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Robert G. Weeks, David A. Hesterman, and Kenneth L. Weeks James T. Kelly, Administrative Law Judge 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/360036","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Robert G. Weeks, David A. Hesterman, and Kenneth L. Weeks James T. Kelly, Administrative Law Judge
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Robert G. Weeks, David A. Hesterman, and Kenneth L. Weeks James T. Kelly, Administrative Law Judge
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES ACT OF 1933
+
+ Release No. 7799 / February 14, 2000 
+
+ SECURITIES EXCHANGE ACT OF 1934
+
+ Release No. 42420 / February 14, 2000 
+
+ ACCOUNTING AND AUDIT ENFORCEMENT
+
+ Release No. 1228 / February 14, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+
+ File No. 3-9952
+
+  
+     In the Matter of  JETHRO J. BARLOW, CPA,  
+ ALAN K. BURTON, 
+ J. EDWARDS COX,
+ ROBERT G. WEEKS,  
+ DAVID A. HESTERMAN,  
+ and KENNETH L. WEEKS  
+  
+Respondent.      
+   
+
+
+ 
+ORDER MAKING FINDINGS AND
+
+ IMPOSING REMEDIAL SANCTIONS
+
+  BY DEFAULT AGAINST RESPONDENT
+ JETHRO J. BARLOW, CPA,  
+
+ 
+ 
+   The Securities and Exchange Commission (Commission) instituted this proceeding on August 2, 1999, by an Order Instituting Proceedings (OIP), pursuant to Section 8A of the Securities Act of 1933 (Securities Act), Section 21C of the Securities Exchange Act of 1934 (Exchange Act), and Rule 102(e) of the Commission's Rules of Practice.  The Commission granted the Division of Enforcement's (Division) request to amend the OIP (Amended OIP) on November 5, 1999. 
+
+   The OIP was served on Respondent Jethro J. Barlow (Barlow), a certified public accountant (CPA), on August 12, 1999.  The Amended OIP was served on Respondent Barlow on November 13, 1999.  By the terms of the Amended OIP and Rule 220(b) of the Commission's Rules of Practice, 17 C.F.R. §201.220(b), Respondent's Answer was due on the latter of twenty days after the date of service of the Amended OIP or twenty days after the date of my December 15, 1999, Order.  Thus far, Respondent Barlow has failed to file an Answer to the OIP, an Answer to the Amended OIP, or any other responsive pleading in this matter, including a response to the Division's Motion For Entry Of An Order Making Findings And Imposing Sanctions By Default Against Respondent Jethro J. Barlow, CPA, filed on December 13, 1999. 
+
+   Pursuant to Rules 155(a)(2) and 220(f) of the Commission's Rules of Practice, 17 C.F.R. §§201.155(a)(2) and 220(f), a respondent who fails to file an Answer or otherwise defend the proceeding may be deemed in default.  The administrative law judge may determine the proceeding against the Respondent upon consideration of the record, including the Amended OIP, the allegations of which may be deemed to be true.   
+
+   Respondent Barlow is in default within the meaning of Rule 155(a).  He has failed to file any Answer and has not otherwise defended this proceeding.   See  Rules 155(a)(2) and 220(f).  Accordingly, I find the allegations in the Amended OIP are true:  1   
+
+   1. Dynamic American Corp. (Dynamic American), now a defunct corporation, was formed in 1961 and became a reporting company under Section 12(g) of the Exchange Act in March 1972 when its Form 10 registration statement with the Commission became effective.  From June 1995 to at least November 1996, Dynamic American's affairs were directed from Robert G. Weeks' (R. Weeks), Kenneth L. Weeks' (K. Weeks) (collectively the Weeks) and David A. Hesterman's (Hesterman) offices in Salt Lake City, Utah. 
+
+   2. Respondent Barlow resides in Colorado City, Arizona, which adjoins Hilldale, Utah.  Barlow has been licensed as a CPA in Utah since 1976.  Barlow acquired Dynamic American as a shell corporation in 1991 and served as its president from then to the present, except for a ten and one-half month period during which Alan K. Burton served as president.  Barlow signed Dynamic American's March 31, 1995 Form 10-Q as the company's president and chief accounting officer.  Barlow has also served as a director of Dynamic American since 1991.  Barlow compiled financial statements for Dynamic American's U.S. mineral assets for inclusion in the company's periodic reports filed with the Commission.  Barlow practiced before the Commission pursuant to Rule 102(f) of the Commission's Rules of Practice. 
+
+   3. During the period from approximately June 1995 through November 1996, Barlow willfully violated Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, in that he, directly or indirectly, in connection with the offer, purchase or sale of securities, by the use of the mails and the means or instruments of transportation and communication in interstate commerce, and the means and instrumentalities of interstate commerce, employed devices, schemes or artifices to defraud; obtained money or property by means of, and made untrue statements of material fact or omitted to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or engaged in acts, transactions, practices, or courses of business which operated as a fraud or deceit upon purchasers or sellers of securities, namely Dynamic American's stock. 
+
+   4. As part of and in furtherance of the conduct described above in paragraph 3, Barlow made untrue statements of material facts and/or omitted to state material facts to the public, to investors, and to prospective investors.  In this regard Barlow: 
+
+     (a) failed to disclose that Dynamic American acquired certain Bolivian     mineral properties from an affiliate in a non-arms-length transaction; 
+
+     (b) baselessly valued the Bolivian mineral properties at approximately $40
+
+      million, and then later at approximately $38.6 million, in Dynamic
+
+      American's balance sheets included in the company's Form's 10-Q filed
+
+      with the Commission for the quarters ended June 30, 1995, and      September 30, 1995, and its Form 10-K and 10-K/A filed with the     Commission for the transition period ended September 30, 1995; 
+
+     (c) baselessly valued certain U.S. mineral assets at approximately $4.3 
+
+      million in Dynamic American's balance sheets included in the 
+
+      company's Forms 10-K filed with the Commission for the periods ended 
+
+      December 31, 1994, and September 30, 1995; Form 10-K/A for the
+
+      period ended September 30, 1995; and Forms 10-Q filed with the
+
+      Commission for the quarters ended March 31, 1995, June 30, 1995, and    September 30, 1995; 
+
+     (d) misrepresented the status of Dynamic American's operations in Bolivia,
+
+      ncluding the company's ability to fund its Bolivian operations, the
+
+      profitability of a tin smelter located on its Bolivian mineral properties,     and the proven and probable reserves of certain minerals located on the 
+
+      properties; and 
+
+     (e) failed to disclose that Barlow and Dynamic American's other purported
+
+      officers and directors were figureheads acting at the direction of R. 
+
+      Weeks, Hesterman and K. Weeks, the  de   facto  officers and directors
+
+      of the company. 
+
+   5. During the period from approximately August 1995 to November 1996, Barlow
+
+violated Sections 5(a) and 5(c) of the Securities Act in that he, directly and indirectly, made use of the mails or other means or instruments of transportation or communication in interstate commerce to offer to sell, sell, and deliver after sale, to members of the public, certain securities, namely Dynamic American's stock, when no registration statement was filed or in effect as to the stock and no exemption from registration was available. 
+
+   6. As part of and in furtherance of the conduct described above in paragraph 5, 
+
+from approximately July 1995 to September 1996, R. Weeks, Hesterman, and K. Weeks caused Dynamic American to issue approximately 50.55 million shares of Dynamic American's common stock to two offshore corporations that they controlled and to an individual.  The stock was delivered into U.S. and Canadian brokerage accounts in the names of the offshore corporations, and over thirty-two million shares were then sold for proceeds of nearly $4 million.  No registration statement concerning these sales was filed with the Commission and no exemption from registration was available for the sales.  R. Weeks, Hesterman, and K. Weeks used some of the proceeds to pay for Dynamic American's operating expenses, but disbursed the majority of the proceeds to themselves, family members, personal and business acquaintances, and others.  Barlow, in his capacity as a director of Dynamic American, repeatedly signed corporate resolutions instructing Dynamic American's transfer agent to issue stock to the offshore corporations. 
+
+   7. At all relevant times, Dynamic American was an issuer of securities required to file periodic reports with the Commission pursuant to Section 13(a) of the Exchange Act. 
+
+   8. Beginning in or about June 1995, Dynamic American violated Section 13(a) of the Exchange Act and Rules 13a-1, 13a-10, 13a-11, 13a-13, 12b-20, and 12b-25 thereunder in that: 
+
+     (a) of the thirteen Forms 10-Q and five Forms 10-K required to be filed by     Dynamic American since June 1995, none of these eighteen Forms was     timely filed (four Forms were filed late by from 45 to 195 days, and     fourteen Forms--all of the Forms required to be filed from the year ended    December 31, 1995, to the quarter ended March 31, 1999--have never     been filed), and the company failed to file notices of late filing for its     tardy reports; 
+
+     (b) as a result of the change in its fiscal year-end from December 31 to 
+      September 30, Dynamic American was required, but failed, to file a
+
+      complete transition report on Form 10-K for the period ended September
+
+     30, 1995; 
+
+     (c) Dynamic American failed to file current reports on Form 8-K triggered
+
+      by the company's change in control and its change in fiscal year; and
+
+    (d) Dynamic American filed materially false periodic reports with the 
+
+      Commission and filed reports that, in addition to the information      expressly required to be included in the report, failed to add such further    material information as was necessary to make the required statements, in    light of the circumstances under which they were made, not misleading,     concerning, among other things, the number of shares outstanding as of     the filing dates of each of its reports (in addition to providing the required 
+
+      disclosure of the number of shares outstanding as of the applicable 
+
+      period) and false and misleading disclosures about Dynamic American's
+
+      management, assets, and business operations, as described above in more 
+
+      detail in subparagraphs 4(a)-(e). 
+
+   9. Barlow caused Dynamic American's violations of Section 13(a) of the Exchange Act and Rules 13a-1, 13a-10, 13a-13, 12b-20, and 12b-25 thereunder because, in his capacity as an officer and director of Dynamic American, he signed late and/or false periodic reports described in subparagraphs 8(a) and 8(d) above.  Barlow was also responsible for Dynamic American's failure to file:  notices of late filing for its tardy periodic reports; annual or quarterly reports after the period ended September 30, 1995, as described in subparagraph 8(a) above; and a complete transition report on Form 10-K as described in subparagraph 8(b) above.  In addition, Barlow caused violations of Rule 13a-11 of the Exchange Act stemming from Dynamic American's failure to file current reports on Form 8-K, as described in subparagraph 8(c) above. 
+
+   10. Barlow, a CPA, compiled in-house financial statements for Dynamic American that were filed with the Commission as part of Dynamic American's March 31, 1995, June 30, 1995, and September 30, 1995, Forms 10-Q.  These financial statements related to both the U.S. and Bolivian mineral assets.  For Dynamic American's December 31, 1994, annual report and September 30, 1995, transition report on Forms 10-K, Barlow prepared financial statements relating to the company's U.S. mineral assets, obtained financial statements audited by a Bolivian accounting firm for two of the four Bolivian mining properties, and delivered all of these documents to Dynamic American's U.S. auditors. 
+
+   11. Barlow engaged in improper professional conduct by failing to assure that the financial statements for Dynamic American that he prepared and which he knew would be incorporated into Dynamic American's Commission filings were prepared in accordance with generally accepted accounting principles, in that the financial statements failed to properly value:  (a) the Bolivian mineral properties obtained by Dynamic American in exchange for preferred stock and (b) the U.S. mineral assets obtained by Dynamic American in several non-monetary transactions. 
+
+   The Division requests that, pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act, Respondent Barlow be ordered to cease and desist from committing or causing violations of and any future violations of Section 5(a), 5(c), and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and from causing violations of and any future violations of Section 13(a) of the Exchange Act and Rules 13a-1, 13a-10, 13a-11, 13a-13, 12b-20, and 12b-25 thereunder.  The Division also requests that Respondent Barlow be denied the privilege of appearing or practicing before the Commission as an accountant pursuant to Rule 102(e)(1)(ii) and (iii) of the Commission's Rules of Practice. 
+
+   In view of the foregoing, I find it in the public interest to order that Respondent Barlow cease and desist from committing or causing violations of and any future violations of Section 5(a), 5(c), and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and from causing violations of and any future violations of Section 13(a) of the Exchange Act and Rules 13a-1, 13a-10, 13a-11, 13a-13, 12b-20, and 12b-25 thereunder.  I further find that it is in the public interest to permanently deny Respondent Barlow the privilege of appearing or practicing before the Commission as an accountant pursuant to Rule 102(e)(1)(ii) and (iii) of the Commission's Rules of Practice. 
+
+   Accordingly, it is  ORDERED  that Respondent Jethro J. Barlow, CPA, cease and desist from committing or causing violations of and any future violations of Section 5(a), 5(c), and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder;  and from causing violations of and any future violations of Section 13(a) of the Exchange Act and Rules 13a-1, 13a-10, 13a-11, 13a-13, 12b-20, and 12b-25 thereunder.  It is further  ORDERED  that Respondent Jethro J. Barlow, CPA, is permanently denied the privilege of appearing or practicing before the Commission as an accountant pursuant to Rule 102(e)(1)(ii) and (iii) of the Commission's Rules of Practice. 
+
+               ________________________________ 
+
+                                James T. Kelly
+
+                     Administrative Law Judge 
+
+   Footnotes  
+   1     The findings herein are binding solely upon Respondent Barlow, and not any other Respondent in this proceeding. 
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1229.txt b/raw/aaer/2000/AAER-1229.txt
new file mode 100644
index 0000000000000000000000000000000000000000..409e584c4666798d8620212c83478cac6c87d7b5
--- /dev/null
+++ b/raw/aaer/2000/AAER-1229.txt
@@ -0,0 +1,1372 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Itex Corporation, Terry L. Neal, Michael T. Baer, Graham H. Norris, Cynthia Pfaltzgraff and Joseph M. Morris 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/482696","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Itex Corporation, Terry L. Neal, Michael T. Baer, Graham H. Norris, Cynthia Pfaltzgraff and Joseph M. Morris
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Itex Corporation, Terry L. Neal, Michael T. Baer, Graham H. Norris, Cynthia Pfaltzgraff and Joseph M. Morris
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION 
+
+ Litigation Release No. 16437 / February 15, 2000 
+
+ Accounting and Auditing Enforcement Release No. 1229 / February 15, 2000 
+
+  SEC v. Itex Corporation, Terry L. Neal, Michael T. Baer, Graham H. Norris, Cynthia Pfaltzgraff and Joseph M. Morris,  CV 99-1361 BR (D. Ore. September  27, 1999) 
+
+ SEC SETTLES FRAUD CASE AGAINST ITEX CORPORATION 
+
+   On February 4, 2000, the United States District Court for the District of Oregon entered a final judgment permanently enjoining Itex Corporation ("Itex) from violating the anti-fraud provisions of the federal securities laws, as well as certain securities registration, internal controls and record-keeping provisions.  The Commission's complaint, filed September 27, 1999, alleged that from at least December 1993 through February 1998, Itex, a company engaged in the barter exchange business and formerly listed on the NASDAQ Small Cap Market, materially inflated its revenues and earnings in financial statements filed with the Commission and in other disclosures made to the investing public.  The Complaint alleged that Itex made materially false and misleading disclosures about the company's business and failed to disclose numerous suspect and in many cases sham barter deals between Itex and various mysterious offshore entities related to and/or controlled by Terry Neal, Itex's founder and control person. 
+
+   The Complaint alleged that Itex reported substantial revenue from sham barter transactions as a principal in its own name or through its Swiss-based subsidiary, Associated Reciprocal Traders ("ART").  In fiscal years 1994 through 1997, approximately 56%, 56%, 43% and 60%, respectively, of Itex's reported revenues derived from such barter transactions.  Almost all of the Itex barter transactions were suspect inside deals involving Neal himself.  The barter deals involved difficult-to-value assets, such as artwork, pre-paid advertising due bills, and worthless stocks in public companies.  Some Itex deals involved purely bogus assets such as leases on vacant property, a non-existent stamp collection, and highly-questionable unpatented and undeveloped mineral claims. 
+
+   The Complaint alleged that without the fabricated barter earnings from Neal's transactions, Itex would have reported losses rather than profits for fiscal years 1994 through 1997.  Itex's materially overstated financial condition and results of operation were reported in its financial reports for this period and touted in numerous press releases.  Riding this wave of financial misinformation, Itex's stock price rose from $2.25 to $12.50 per share from January 1994 through February 1996.   
+
+ The Complaint alleged that the defendants defrauded Itex investors by bartering assets of little or no value and by designating the value of many of Itex's assets and transactions in "trade dollars" rather than their far lower U.S.-dollar fair market values on its financial statements.  On the Itex Exchange, members trade goods and services.  In lieu of trading (or bartering) such goods and services directly, Exchange members use Itex trade dollars, issued to them by the Itex Exchange.  Itex corruptly took advantage of the process, however, by orchestrating numerous bogus barter deals, in which the goods and services exchanged were grossly overvalued, and then reported in Itex public filings as income and/or assets, thus facilitating the fraud. 
+
+   The Complaint also alleged that while Itex managed to inflate its income statement from barter transactions   conducted and reported in trade dollars, it needed cash to pay its operating expenses.  Since the company had in reality been losing money from fiscal 1995 through the present, it made up the operating shortfall with $11.7 million in proceeds from the sale of its common and preferred stock.  To facilitate the fraud, the bulk of the shares, approximately 1.2 million, were initially sold at substantial discounts to offshore entities secretly controlled by Neal, under cover of Regulation S (which allows offshore sales to foreign investors who have no present intention to sell them back into the U.S. market).  The stock, however, was quickly sold back into the U.S. market, and the approximately $10.7 million in gross proceeds was, among other things, used to fund Itex . 
+
+   Itex consented, without admitting or denying the Commission's allegations, to the entry of a final judgment permanently enjoining it from violating Sections 5 and 17(a) of the Securities Act of 1933, and Sections 10(b), 13(a), 13(B)(2)(A) and 13(B)(2)(B) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1, 13a-13, thereunder.   The final judgment also orders Itex to restate its financial statements and file an amended Form 10-K for its fiscal year ended July 31, 1997 and to file complete and accurate Forms 10-K for its 1998 and 1999 fiscal years. 
+
+   Joseph M. Morris, Itex's former chief financial officer, previously consented to the entry of a final judgment of permanent injunction and other relief (Lit.Rel. No. 16430, February 10, 2000) and a Commission order barring him from practicing as an accountant before the Commission with a right to reapply after five years ( In the Matter of Joseph Morris,  Admin. Proc. No. 3-10144, February 10, 2000).  The Commission is continuing its litigation against defendants Terry Neal, Michael T. Baer, Graham H. Norris and Cynthia Pfaltzgraff.  
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1230.txt b/raw/aaer/2000/AAER-1230.txt
new file mode 100644
index 0000000000000000000000000000000000000000..e34cd5359bffac36a19e3dd05bd7c848168fc69c
--- /dev/null
+++ b/raw/aaer/2000/AAER-1230.txt
@@ -0,0 +1,1495 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Danny R. Auerbach, Michael L. Glaser, and James Montgomery, II 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/360016","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Danny R. Auerbach, Michael L. Glaser, and James Montgomery, II
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Danny R. Auerbach, Michael L. Glaser, and James Montgomery, II
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  42432 / February 16, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1230 / February 16, 2000
+
+  ADMINISTRATIVE PROCEEDING
+ File No. 3-10042
+  
+
+    In the Matter of  JAMES D. MONTGOMERY II, 
+  
+Respondent.	 
+   
+
+
+ 
+  ORDER MAKING FINDINGS 
+AND IMPOSING A CEASE- 
+ AND-DESIST ORDER
+ 
+   I.
+
+  On September 28, 1999, the Securities and Exchange Commission ("Commission") deemed it appropriate that public administrative cease-and-desist proceedings be instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against James D. Montgomery II ("Montgomery").  
+
+    Following the institution of those proceedings, Montgomery submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceeding brought by or on behalf of the Commission or in which the Commission is a party, Montgomery consents to the entry of this Order Making Findings and Imposing A Cease-and-Desist Order ("Order") without admitting or denying the findings set forth herein, except as to the jurisdiction of the Commission over him and over the subject matter of these proceedings, which are admitted.
+
+    The Commission has determined that it is appropriate to accept Montgomery's Offer and accordingly is issuing this Order. 
+
+  II.
+
+    On the basis of this Order and the Offer, the Commission finds  1   the following:
+
+    A. Computone Corporation ("Computone") is a company headquartered in Alpharetta, Georgia that designs, manufactures and sells computer hardware and software products. Computone's common stock is registered pursuant to Section 12(g) of the Exchange Act.
+
+    B. Computone filed with the Commission its July 7, 1995 Form 10-Q on September 14, 1995.
+
+    C. Montgomery, of Auburn, Georgia, served as Computone's director of original equipment manufacturer sales from early 1994 through August 1995.
+
+  D. In June 1995, Montgomery was told that Computone's chief executive officer wanted Montgomery to make a sale to a customer of Computone in order for Computone to meet its quarterly revenue target.  On or about June 29, 1995, Montgomery persuaded a customer to place an order, but the customer insisted on placing a contingent purchase order with a number of conditions.  
+
+  E. On or about July 7, 1995 (last day of the quarter), Montgomery was told that the contingent nature of the order precluded Computone from recognizing the sale and including it in revenue in Computone's Fiscal Year ("FY") 1996 first quarter and that Computone desired to record and recognize this revenue. 
+
+  F. Senior management of Computone directed Montgomery to alter the customer's purchase order to eliminate certain of the customer's conditions and to modify others so that Computone could recognize the sale.  Montgomery made these changes knowing that the customer was unaware of the alterations.
+
+  G. On or about July 7, 1995, Montgomery attempted to persuade the customer to sign and return a letter which he believed would support the altered purchase order.  Montgomery intended to give the signed letter to Computone's accounting department in order to support Computone's recognition of revenue from this transaction.  The customer refused to sign the letter.  
+
+  H. In part as the result of Montgomery's conduct, Computone recognized this transaction as a sale, which caused it to understate materially its FY 1996 first quarter reported loss from continuing operations by approximately $544,400.  In part, this caused Computone to report a loss of $641,000 from continuing operations during this quarter rather than a loss of approximately $1,352,380. 
+
+  I. Montgomery also misled Computone's auditors, in connection with their audit of Computone's FY 1996 financial statements, regarding this transaction.  On or about July 2, 1996, Montgomery falsely told the auditors that he had no specific knowledge about this transaction.  On or about July 17, 1996, Montgomery misled the auditors when he told them that he had never seen the altered purchase order, when at the time, Montgomery possessed various altered versions of the original purchase order. 
+
+  J. Montgomery caused Computone to violate Section 10(b) of the Exchange Act and Rule 10b-5 thereunder by, directly and indirectly, using the means and instrumentalities of interstate commerce and of the mails in connection with the purchase and sale of securities: (1) to employ devices, schemes, and artifices to defraud, (2) to make untrue statements of material facts and to omit to state material facts necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, and (3) to engage in acts, practices, and a course of business which operated as a fraud and deceit upon persons, in connection with the purchase and sale of such securities, as more particularly described in paragraphs II. D through I above.
+
+    K. Montgomery caused Computone to violate Section 13(a) of the Exchange Act and Rule 13a-13 thereunder by causing Computone to file quarterly reports with the Commission which were not in accordance with the rules and regulations prescribed by the Commission, as more particularly described in paragraphs II. D through I above.
+
+    L. Montgomery caused Computone to violate Section 13(b)(2)(A) of the Exchange Act by causing Computone to fail to make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly reflected the transactions and dispositions of the assets of Computone, as more particularly described in paragraphs II. D through I above.
+
+    M. Montgomery caused Computone to violate Section 13(b)(2)(B) of the Exchange Act by causing Computone to fail to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that: (1) transactions were executed in accordance with management's general or specific authorization, (2) transactions were recorded as necessary (i) to permit preparation of financial statements in conformity with GAAP or any other criteria applicable to such statements, and (ii) to maintain accountability for assets, (3) access to assets was permitted only in accordance with management's general or specific authorization, and (4) the recorded accountability for assets was compared with the existing assets at reasonable intervals and appropriate action was taken with respect to any differences, as more particularly described in paragraphs II. D through I above.  
+
+    N. Montgomery committed violations of Section 13(b)(5) of the Exchange Act by knowingly circumventing or knowingly failing to implement a system of internal accounting controls or knowingly falsifying Computone's books, records, or accounts described by Section 13(b)(2) of the Exchange Act, as more particularly described in paragraphs II. D through I  above.
+
+  O. Montgomery committed violations of and caused Computone to violate Rule 13b2-1 of the Exchange Act by directly or indirectly, falsifying or causing to be falsified, Computone's books, records or accounts subject to Section 13(b)(2)(A) of the Exchange Act, as more particularly described in paragraphs II. D through I above.
+
+  III.
+
+    In view of the foregoing, it is in the public interest to impose the sanction specified in the Offer. 
+
+    Accordingly, it is hereby ordered that Montgomery cease and desist from committing or causing any violation and any future violation of Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-1 thereunder and from causing violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rule 13a-13 thereunder.  
+
+    For the Commission, by its Secretary, pursuant to delegated authority.
+
+              Jonathan G. Katz
+             Secretary
+     Footnotes 
+   1     The findings herein are made pursuant to the Offer of Settlement of Montgomery and are not binding on any other person or entity named as a respondent in this or any other proceeding.
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1231.txt b/raw/aaer/2000/AAER-1231.txt
new file mode 100644
index 0000000000000000000000000000000000000000..f8538524209547b8fe69f7e9729aa503665f258a
--- /dev/null
+++ b/raw/aaer/2000/AAER-1231.txt
@@ -0,0 +1,1363 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Mitchell Kahn, et al. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/482731","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Mitchell Kahn, et al.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Mitchell Kahn, et al.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              
+SECURITIES AND EXCHANGE COMMISSION
+
+  
+Litigation Release No. 16444 / February 18, 2000
+  
+Accounting and Auditing Enforcement Release No. 1231 / February 18, 2000
+  
+ S.E.C. v. Mitchell C. Kahn et al. , (N.D. ILL., CASE NO. 99 C 6343, Filed September 22, 1999)
+
+  
+The Securities and Exchange Commission (SEC) announced that on February 15, 2000 the United States District Court for the Northern District of Illinois entered a permanent injunction enjoining Thomas R. Ehmann (Ehmann) of Elmhurst, Illinois from violating Sections 10(b), 13(a), 13(b)(2), and 13(b)(5) of the Securities Exchange Act of 1934 and Rules 12b-20, 13a-1 and 13a-11 promulgated thereunder.  The Court also ordered Ehmann to disgorge $16,500 in ill-gotten gains and prejudgment interest and to pay a civil penalty to the United States Treasury of $25,000.  
+  
+The SEC's complaint alleged that Ehmann was involved in a scheme to defraud investors by materially overstating the financial condition and results of operations of First Merchants Acceptance Corporation (First Merchants), a sub-prime lender.  The Commission's complaint alleges that First Merchants' president and vice president of strategic planning devised a scheme to, among other things, manipulate customer account information so that delinquent and uncollectible accounts appeared current.  It alleges that Ehmann, First Merchants' CFO, discovered the scheme, yet took no acts to prevent it and, in fact, signed the 1996 Form 10-K filed with the Commission.  According to the complaint, Ehmann also took affirmative acts to mislead First Merchants' outside auditors.  The complaint alleges that these acts resulted in the overstatement of First Merchants' income by $76.7 million or 729% in the 1996 Form 10-K and 1997 Form 8-K filed with the Commission.  Ehmann consented to the entry of the order without admitting or denying the SEC's allegations.  The other two defendants, Mitchell Kahn and Paul Van Eyl, First Merchants' president and vice president of strategic development, respectively, remain in the case. 
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1232.txt b/raw/aaer/2000/AAER-1232.txt
new file mode 100644
index 0000000000000000000000000000000000000000..975d981b20f2b84e5333db446e272347ffb942c1
--- /dev/null
+++ b/raw/aaer/2000/AAER-1232.txt
@@ -0,0 +1,1457 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Cypress Bioscience Inc. and Alex P. De Soto 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/360011","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Cypress Bioscience Inc. and Alex P. De Soto
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Cypress Bioscience Inc. and Alex P. De Soto
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  42438 / February 18, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.   1232 / February 18, 2000
+
+  ADMINISTRATIVE PROCEEDING File No. 3-9085
+
+    ______________________________   
+     : 
+    In the Matter of  : 
+   Alex. P. de Soto, CPA  : ORDER GRANTING APPLICATION FOR  
+      : REINSTATEMENT TO PRACTICE AS AN 
+     : ACCOUNTANT 
+   ______________________________  : 
+   On September 19, 1996, Alex P. de Soto, CPA ("de Soto") was suspended by the Commission from appearing or practicing as an accountant before the Commission as a result of settled public administrative proceedings instituted by the Commission against de Soto pursuant to Section 8A of the Securities Act, Section 21C of the Exchange Act and Rule 102(e)(1)(iii) of the Commission's Rules of Practice.    1    This order is issued in response to his application for reinstatement to practice before the Commission as an accountant.
+
+    For its third quarter ended September 30, 1993, Cypress Bioscience Inc., formerly known as IMRE Corporation ("Cypress" or the "Company"), filed with the Commission financial statements that included material revenues from transactions with customers under the Company's volume discount program.  During the summer of 1993, an accountant for Cypress informed de Soto, who at the time was an audit manager for Coopers & Lybrand LLP working on the Cypress account, of the Company's intent to increase its volume discount program revenue to a material amount, and sought de Soto's advice as to whether unshipped, invoiced products related to this program could be recognized as revenue.  De Soto referred the Cypress accountant to the requirements of AAER No. 108 related to bill and hold transactions, and informed the accountant that the Company would have to obtain a legal opinion that the storage sales constituted legal sales in the state of Washington.
+
+    In mid-1993, de Soto sought the position of Cypress' chief financial officer, and was hired and began working as such on September 1, 1993.  De Soto immediately set out to acquaint himself with Cypress' volume discount program.  Based on his review of the relevant documentation and after obtaining additional relevant information related to the volume discount program, he concluded that the customer-generated documentation and other documentation were not sufficient to support the recognition of revenue prior to shipment under this program.  Despite this information, with de Soto's approval, on October 11, 1993, Cypress publicly announced revenues of $2,009,122 for the quarter ended September 30, 1993, $982,650, or 49%, of which consisted of revenues related to the volume discount program.  Thereafter, de Soto drafted Cypress' report on Form 10-Q, including the MD&A narrative, which failed to make adequate disclosures concerning the Company's revenue recognition policy related to the volume discount program, as well as the Company's reliance upon the volume discount program for a substantial portion of the company's third quarter 1993 revenues.  The form 10-Q, which was signed by de Soto, was filed with the Commission on November 3, 1993.  After completing its year-end audit field work, Cypress' independent auditors concluded that revenue recognition for the volume discount program transactions was inappropriate, and Cypress restated its third quarter financial statements included in the form 10-Q on March 15, 1994 to reverse $791,781 of the $982,650 volume discount program revenue previously recognized.
+
+    De Soto's reinstatement to practice before the Commission as a preparer or reviewer, or a person responsible for the preparation or review, of financial statements of a public company to be filed with the Commission is conditioned on his undertaking that in his practice before the Commission his work will be reviewed by the independent audit committee of the company for which he works or in some other manner acceptable to the Commission.  De Soto's reinstatement to practice before the Commission as an independent accountant is conditioned upon his making a showing before doing so that: (1) he, or any firm with which he is or becomes associated in any capacity, is and will remain a member of the SEC Practice Section of the American Institute of Certified Public Accountants Division for CPA Firms (the "SECPS") as long as he appears or practices before the Commission as an independent accountant; (2) he or the firm has received an unqualified report relating to his or the firm's most recent peer review conducted in accordance with the guidelines adopted by the SECPS; and, (3) he will comply with all applicable SECPS requirements, including all requirements for periodic peer reviews, concurring partner reviews, and continuing professional education, as long as he appears or practices before the Commission as an independent accountant.
+
+    On the basis of information supplied, representations made, and undertakings agreed to by de Soto, it appearing that de Soto has complied and will continue to comply with the terms of his suspension from practice before the Commission as an accountant, that no information has come to the attention of the Commission relating to his character, integrity, professional conduct or qualifications to practice before the Commission that would be a basis for adverse action against de Soto pursuant to Rule 102(e)(1)(iii) of the Commission's Rules of Practice, and that de Soto's offer to condition his reinstatement is fair and in the public interest, it is accordingly,
+
+     Ordered  pursuant to Rule 102(e)(5)(i) of the Commission's Rules of Practice that Alex P. de Soto, CPA is reinstated to appear and practice before the Commission as an accountant.
+
+    By the Commission.
+
+                  Jonathan G. Katz
+                 Secretary
+  
+   Footnotes 
+ 
+
+     -[1]- 
+ See Accounting and Auditing Enforcement  Release No. 817 , dated September 19, 1996.  De Soto was allowed, pursuant to the order, to apply for reinstatement after three years upon making certain showings.
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1233.txt b/raw/aaer/2000/AAER-1233.txt
new file mode 100644
index 0000000000000000000000000000000000000000..66d9431388775a52135a8d8581c930b106124768
--- /dev/null
+++ b/raw/aaer/2000/AAER-1233.txt
@@ -0,0 +1,1386 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Robert B. Anacone 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/482796","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Robert B. Anacone
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Robert B. Anacone
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              United States Securities and Exchange Commission 
+
+ Litigation Release No. 16457 / February 29, 2000 
+Accounting and Auditing Enforcement Release No. 1233  / February 29, 2000 
+
+ SECURITIES AND EXCHANGE COMMISSION v. ROBERT B. ANACONE,
+U.S. District Court for the District of Columbia, Civil Action Number 00400
+(February 29, 2000) (D.D.C.) 
+
+  SEC SETTLES CORPORATE REVENUE RECOGNITION AND ILLEGAL STOCK TRADING CASE  
+
+   The Securities and Exchange Commission today filed a Complaint alleging that during fiscal 1993 and 1994 Robert B. Anacone, then executive vice president of sales and marketing of PerSeptive Biosystems, Inc., engaged in practices that materially inflated the revenue and income PerSeptive reported in its publicly disseminated financial statements.  Those practices, the Complaint alleges, included his having caused certain customer orders for PerSeptive products to be entered into the company's books and records where the sales were contingent upon future events, and where there was no binding commitment to purchase.  The Complaint further alleges that Anacone did not adequately disclose such material sales conditions to PerSeptive's internal accountants.  According to the Complaint, Anacone also avoided substantial losses by selling PerSeptive stock while in possession of material nonpublic information concerning this ongoing fraudulent scheme. 
+
+   Anacone, without admitting or denying the allegations in the Complaint, simultaneously consented to the entry of a permanent injunction against violations of the antifraud and corporate books and records provisions, and agreed to pay $94,605 in disgorgement, $60,948.46 in prejudgment interest thereon, and a $60,000 civil penalty. 
+
+   Specifically, the Complaint alleges the following: 
+
+    Improper Corporate Sales Recognition  
+
+   Anacone participated in PerSeptive's budgeting process by presenting sales projections to PerSeptive's chief executive and chief financial officers, monitored his sales force's progress toward its budgeted sales targets and, near the end of fiscal quarters in what was colloquially known as the "war room," discussed the status of individual prospective sales and the sales needed to achieve PerSeptive's targets.
+
+     In order to persuade prospective customers to place product orders needed to    achieve PerSeptive's budgeted sales projections, Anacone repeatedly agreed to special terms knowing, or reckless in not knowing, that those terms precluded revenue recognition under generally accepted accounting principles.  
+
+    The terms included allowing customers to "evaluate" PerSeptive products with no purchase obligation, and granting them the right to return the products solely at their discretion.  Anacone also entered into arrangements which included other material conditions such as funding contingencies.  At times Anacone communicated conditional terms to customers orally and in side letters.  On other occasions he expressly authorized his sales staff to issue side letters offering customers contingent terms such as evaluation periods and unilateral rights of return.  
+
+    Anacone, directly or indirectly, caused false and misleading documentation to be provided to PerSeptive's internal accountants that did not disclose the material conditions associated with customer orders for PerSeptive's products.  Anacone knew or was reckless in not knowing that such conditions were not known to PerSeptive's accounting personnel.  
+
+    By at least November 1993, Anacone knew or was reckless in not knowing that materially contingent orders placed in PerSeptive's order entry system would be improperly recognized as revenue.  Notwithstanding this, to obtain customer orders Anacone continued to approve special terms including material contingencies, knowingly or recklessly causing such orders to be entered into PerSeptive's books and records through at least the close of the June 30, 1994 fiscal quarter.    Fraud In Connection With Securities Trading  
+
+  In February 1994 Anacone sold 10,000 shares of PerSeptive stock in a market in which PerSeptive's stock was artificially inflated by his scheme to overstate the company's revenue and income.  
+
+    In December 1994 PerSeptive restated its financial results for fiscal 1993 and for the first three quarters of fiscal 1994.  As a result of the restatement, PerSeptive's fiscal 1993 revenues declined by more than 19 percent; and its revenues for the first three quarters of fiscal 1994 declined by 18.8 percent, 24.8 percent, and 32.7 percent, respectively.  Following PerSeptive's December 26, 1994 public announcement of the restatement of its financial results, its stock price declined by more than 35 percent.  
+
+    By selling PerSeptive stock while in possession of material nonpublic information (prior to any public disclosure of PerSeptive's true financial condition), Anacone breached the fiduciary duty he owed to PerSeptive and its shareholders by virtue of his position as a senior PerSeptive officer, fraudulently avoiding losses of $94,605.
+
+   The Complaint alleges that Anacone violated Section 17(a) of the Securities Act of 1933, Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934, and Rules 10b-5, 13b2-1 and 13b2-2 thereunder.  Simultaneously with the filing of the Complaint, without admitting or denying its allegations, Anacone consented to the entry of a Final Judgment enjoining him from future violations of those provisions; and requiring him to disgorge the losses avoided by his securities trading which, together with prejudgment interest, total $155,553.46, and to pay a civil penalty of $60,000. 
+
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1234.txt b/raw/aaer/2000/AAER-1234.txt
new file mode 100644
index 0000000000000000000000000000000000000000..4b4580242bdf43c3c9b33daddf3eac847ef428f0
--- /dev/null
+++ b/raw/aaer/2000/AAER-1234.txt
@@ -0,0 +1,1367 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Donald K. McGhan 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/482841","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Donald K. McGhan
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Donald K. McGhan
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              U.S. Securities and Exchange Commission
+ SEC v. Donald K. McGhan , Civ. Action No. 00CV00475 
+
+  Litigation Release No.  16466 / March 8, 2000   Accounting and Auditing Enforcement Release No. 1234 / March 8, 2000 
+
+
+ SEC Files Settled Financial Fraud Case Against Inamed Corporation's 
+Former CEO Donald McGhan  
+ 
+The Securities and Exchange Commission filed today a settled civil injunctive action against Donald K. McGhan, Inamed Corporation's former Chairman and Chief Executive Officer.  The complaint alleges that in 1996 and 1997, Inamed Corporation, a publicly owned breast implant manufacturer, made materially false and misleading statements and omissions in its financial statements and periodic reports filed with the Commission and in press releases distributed to the investing public.  As Inamed's former Chairman and Chief Executive Officer, McGhan was responsible for the company's public financial disclosures and either knew or was reckless in not knowing of the company's materially false and misleading statements and omissions during this period.  Without admitting or denying the allegations of the complaint, McGhan consented to the entry of a final judgment permanently enjoining him from violating the antifraud, record-keeping and internal controls provisions of the federal securities laws [Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 and Rules 10b-5 and 13b2-1, thereunder], and ordering him to pay a $50,000 civil penalty.
+  
+The complaint alleges that Inamed failed to record a $1.4 million interest expense relating to a waiver of an indenture default and thus materially overstated income and shareholder equity for the quarter ended June 30, 1996.  McGhan signed the Form 10-Q and knew or was reckless in not knowing that it contained false and misleading financial statements.  For the quarter ended September 30, 1996, the complaint alleges that McGhan knowingly or recklessly caused Inamed to improperly reduce the allowance for product returns by nearly $1.9 million from the prior quarter, which resulted in material overstatements in Inamed's pre-tax income and shareholder equity.
+  
+The complaint also alleges that between May and September 1997, McGhan was unable to resolve Inamed's several outstanding issues with its auditors.  On September 9, 1997, over five months after the required filing date, McGhan reviewed and authorized Inamed's filing of its Annual Report on Form 10-K with unaudited financial statements.  Where the auditor's report should have been located in the Form 10-K, Inamed simply inserted the notation "To Come."  McGhan caused Inamed to make the filing without informing its auditors, whose work on the audit continued, and without a chief financial officer to review the financial statements.  Inamed again understated its allowance for product returns and incorrectly recorded a deferred tax asset of $2,022,382.  Moreover, Inamed failed properly to account for its intercompany transfers of inventory and the concomitant elimination of intercompany profit, resulting in approximately a $1.2 million overstatement of inventories and gross profit.  The cumulative effect of these misstatements was that Inamed reported a net loss of $7,071,660, or $0.91 per share, when it should have reported a net loss of at least $11,379,000, or $1.46 per share, a 60% understatement.  Thus, had Inamed correctly reported its losses, the company's losses on a per share basis would have increased substantially from the prior year, rather than remaining the same.  The complaint alleges that McGhan knew or was reckless in not knowing that Inamed's unaudited financial statements in its 1996 Form 10-K were false and misleading.  Inamed also failed to disclose a related party transaction between the company and an entity controlled by McGhan.  
+  
+The complaint also alleges that in connection with a default of a covenant relating to approximately $6 million of convertible debentures issued in January 1997, Inamed, at the direction of McGhan, failed to disclose either the default or the additional costs associated with the default in its quarterly reports for the periods ended March 31, June 30 and September 30, 1997.  As a result Inamed failed to report interest expense of $192,067 for the period ended March 31, 1997, $736,000 for the six months ended June 30, 1997 and $1.2 million for the nine months ended September 30, 1997.  The default costs alone caused Inamed's income to be materially overstated in each of its 1997 Form 10-Qs.
+  
+In a related cease-and-desist proceeding, In the Matter of  Inamed Corporation ( Admin. Proc. No. 3-9976 , August 17, 1999), the Commission entered a settled order against Inamed Corporation ordering it to cease-and-desist from violations from Sections 10(b), 13(B)(2)(A) and 13(B)(2)(B) of the Exchange Act and Rule 10b-5 thereunder.
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1235.txt b/raw/aaer/2000/AAER-1235.txt
new file mode 100644
index 0000000000000000000000000000000000000000..3b7574ffbf001ce3863bfc46d1d065fce2d423b8
--- /dev/null
+++ b/raw/aaer/2000/AAER-1235.txt
@@ -0,0 +1,1474 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | H. DeWorth Williams 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359911","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              H. DeWorth Williams
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        H. DeWorth Williams
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No. 42547 / March 20, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT 
+ Release No. 1235 / March 20, 2000
+
+  ADMINISTRATIVE PROCEEDING 
+ File No. 3-10161
+
+  
+
+
+    ____________________________     
+       : ORDER INSTITUTING PUBLIC  
+   In the Matter of    : PROCEEDINGS, MAKING FINDINGS, 
+   H. DeWorth Williams,    : AND IMPOSING A 
+       : CEASE-AND-DESIST ORDER 
+   Respondent.    : 
+   ______________________________  : 
+   
+ I. 
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate that public cease-and-desist proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") to determine whether H. DeWorth Williams ("Williams" or "respondent") caused violations of Section 13(a) of the Exchange Act, Rule 13a-1 thereunder, and Rule 12b-20.
+
+  
+ II. 
+
+   In anticipation of the institution of these proceedings, Williams has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings contained herein, except that Williams admits the jurisdiction of the Commission over him and over the subject matter of these proceedings, Williams consents to the issuance of this Order Instituting Public Proceedings, Making Findings, and Imposing a Cease-And-Desist Order ("Order") and to the entry of findings and the imposition of the relief set forth below.
+
+  
+ III. 
+
+   On the basis of this Order and respondent's Offer, the Commission finds the following:
+
+   A. Williams, age 54, resides in Park City, Utah. He is a director of Laser Technology, Inc. ("Laser Tech"), a corporation whose stock is registered with the Commission pursuant to Section 12(b) of the Exchange Act.
+
+   B. In approximately September 1997, at a time when he was a director of Laser Tech, Williams paid $165,000 by check to Laser Tech at the request of his brother, David Williams, then president and chairman of Laser Tech.
+
+   C. On or about December 31, 1997, Williams signed Laser Tech's annual report on Form 10-K for the fiscal year ended September 30, 1997. Laser Tech filed the annual report with the Commission shortly thereafter. The annual report was required to disclose certain related transactions as set forth in Item 404 of Regulation S-K [17 C.F.R. § 229.404], but it did not disclose the payment made by Williams to Laser Tech. Instead it stated that Laser Tech had no transactions with related parties.
+
+   D. Williams knew or should have known that it was false and misleading for the annual report to state that Laser Tech had no transactions with related parties. By signing the annual report under such circumstances, Williams caused Laser Tech to violate Section 13(a) of the Exchange Act, Rule 13a-1 thereunder, and Exchange Act Rule 12b-20.
+
+  
+ IV. 
+
+   Accordingly, IT IS HEREBY ORDERED, pursuant to Section 21C of the Exchange Act, that Williams cease and desist from causing any violation, and any future violation, of Section 13(a) of the Exchange Act, Rule 13a-1 thereunder, and Exchange Act Rule 12b-20.
+
+   By the Commission.
+
+   Jonathan G. Katz
+
+  Secretary
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1236.txt b/raw/aaer/2000/AAER-1236.txt
new file mode 100644
index 0000000000000000000000000000000000000000..c63887d6810211fe0c1d3cb555bbd58390ccda7e
--- /dev/null
+++ b/raw/aaer/2000/AAER-1236.txt
@@ -0,0 +1,1471 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Jeremy G. Dunne 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359906","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Jeremy G. Dunne
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Jeremy G. Dunne
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No. 42548 / March 20, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1236 / March 20, 2000
+
+  ADMINISTRATIVE PROCEEDING
+ File No. 3-10162
+
+  
+
+    ____________________     
+             : ORDER INSTITUTING PUBLIC 
+   In the Matter of   : PROCEEDINGS, MAKING FINDINGS, 
+   Jeremy G. Dunne,     : AND IMPOSING A CEASE-AND-DESIST ORDER 
+       : 
+   Respondent.    : 
+   ____________________  : 
+   
+ I. 
+
+    The Securities and Exchange Commission ("Commission") deems it appropriate that public cease-and-desist proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") to determine whether Jeremy G. Dunne ("Dunne" or "respondent") caused violations of Section 13(a) of the Exchange Act, Rule 13a-1 thereunder, and Exchange Act Rule 12b-20.
+
+  
+ II. 
+
+    In anticipation of the institution of these proceedings, Dunne has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings contained herein, except that Dunne admits the jurisdiction of the Commission over him and over the subject matter of these proceedings, Dunne consents to the issuance of this Order Instituting Public Proceedings, Making Findings, and Imposing a Cease-And-Desist Order ("Order") and to the entry of findings and the imposition of the relief set forth below.
+
+  
+ III. 
+
+  On the basis of this Order and respondent's Offer, the Commission finds the following:
+
+  A. Dunne, age 42, resides in Littleton, Colorado.  He is a director of Laser Technology, Inc. ("Laser Tech"), a corporation whose stock is registered with the Commission pursuant to Section 12(b) of the Exchange Act.
+
+  B. In approximately September 1995, when he was a director of Laser Tech, Dunne borrowed $131,250 at the request of David Williams, then president and chairman of Laser Tech.  Dunne believed that this money was to be used as a loan to Laser Tech.  In fact, unknown to Dunne, the money was transmitted to a Laser Tech customer and used to pay for product purchased by that customer.  Laser Tech subsequently repaid the money, with interest, that Dunne had borrowed.
+
+    C. On or about December 22, 1995, Dunne signed Laser Tech's annual report on Form 10-K for the fiscal year ended September 30, 1995.  Laser Tech filed the annual report with the Commission shortly thereafter.  The annual report was required to disclose certain related transactions as set forth in Item 404 of Regulation S-K [17 C.F.R. § 229.404], but it did not disclose the transaction described above that in economic reality was a loan from Dunne to Laser Tech.  Instead it stated that Laser Tech had no transactions with related parties.
+
+    D. Dunne knew or should have known that it was false and misleading for the annual report to state that Laser Tech had no transactions with related parties.  By signing the annual report under such circumstances, Dunne, among others, caused Laser Tech to violate Section 13(a) of the Exchange Act, Rule 13a-1 thereunder, and Exchange Act Rule 12b-20.
+
+  
+ IV. 
+
+    Accordingly, IT IS HEREBY ORDERED, pursuant to Section 21C of the Exchange Act, that Dunne cease and desist from causing any violation, and any future violation, of Section 13(a) of the Exchange Act, Rule 13a-1 thereunder, and Exchange Act Rule 12b-20.
+
+    By the Commission.
+
+                Jonathan G. Katz
+               Secretary
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1237.txt b/raw/aaer/2000/AAER-1237.txt
new file mode 100644
index 0000000000000000000000000000000000000000..e3c7cbdf2caffd75f83837d6f653f13694f5c000
--- /dev/null
+++ b/raw/aaer/2000/AAER-1237.txt
@@ -0,0 +1,1481 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Laser Technology, Inc. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359901","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Laser Technology, Inc.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Laser Technology, Inc.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  42549 / March 20, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No. 1237 / March 20, 2000
+
+  ADMINISTRATIVE PROCEEDING
+ File No. 3-10163
+
+  
+
+    ____________________     
+             : ORDER INSTITUTING PUBLIC 
+   In the Matter of   : PROCEEDINGS, MAKING FINDINGS, 
+   Jeremy G. Dunne,     : AND IMPOSING A CEASE-AND-DESIST ORDER 
+       : 
+   Respondent.    : 
+   ____________________  : 
+   
+ I. 
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate that public cease-and-desist proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") to determine whether Laser Technology, Inc. ("Laser Tech" or "respondent") violated Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(5) of the Exchange Act, Rules 10b-5, 13a-1, 13a-13, and 13b2-1 thereunder, and Exchange Act Rule 12b-20.
+
+  
+ II. 
+
+    In anticipation of the institution of these proceedings, Laser Tech has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings contained herein, except that Laser Tech admits the jurisdiction of the Commission over it and over the subject matter of these proceedings, Laser Tech consents to the issuance of this Order Instituting Public Proceedings, Making Findings, and Imposing a Cease-And-Desist Order ("Order") and to the entry of findings and the imposition of the relief set forth below.
+
+  
+ III. 
+
+    On the basis of this Order and respondent's Offer, the Commission finds the following:
+
+    A. Laser Tech is a Delaware corporation based in Englewood, Colorado, whose stock is registered with the Commission pursuant to Section 12(b) of the Exchange Act.
+
+    B. During the fiscal year ended September 30, 1993, Laser Tech made two shipments of speed gun products to its distributor in Australia.  Laser Tech booked those shipments as sales and recognized the revenue in its financial statements included in its annual report on Form 10-K filed in December 1993.  Laser Tech knew or should have known that its Australian distributor could not pay for the products without resales to end users.  Thus, under Generally Accepted Accounting Principles ("GAAP"), Laser Tech should not have recognized the revenue.
+
+    C. In September and October 1994 and again in September 1995, at a time when they were officers and directors of Laser Tech, David W. Williams ("Williams") and Jeremy G. Dunne ("Dunne") borrowed funds personally.  Those funds were then transmitted to Laser Tech's Australian distributor, who used them to pay down amounts owed to Laser Tech from the two shipments described above.  Williams knew about these transactions, and Laser Tech's Chief Financial Officer, Pamela J. Sevy ("Sevy"), knowingly assisted in making these transactions.  Dunne did not know that the funds were transmitted to or by a distributor in this fashion.  These transactions were in effect loans from the officers/directors to Laser Tech, but Laser Tech booked them as payments received from the Australian distributor, which was improper under GAAP.  Laser Tech did not disclose the transactions as related party transactions pursuant to Item 13, with reference to Item 404 of Regulation S-K, in its Forms 10-K for the fiscal years ended September 30, 1994 or September 30, 1995.
+
+    D. At some time in 1994 or 1995 Laser Tech began to receive returns of unsold products from its Australian distributor.  Laser Tech did not maintain a record of these products in its official inventory or account for resales to other customers in its official books and records.  Instead, in May 1995 Williams and Sevy opened a bank account under Laser Tech's name to facilitate resales of those products to other customers.  Williams and Sevy did not notify Laser Tech's board of directors or seek or obtain their approval to open the account and did not disclose its existence to the company's independent accountants at any time from May 1995 to October 1998.
+
+    E. From approximately December 1995 through approximately June 1998 Laser Tech, through Sevy, made regular payments of principal and interest to the entities that had loaned money to Williams and Dunne, eventually repaying those loans in full.  In approximately September 1997, Williams borrowed $165,000 from his brother H. DeWorth Williams, also a Laser Tech director, to reimburse Laser Tech for the repayments of his loans.  H. DeWorth Williams paid the money directly to Laser Tech.  Laser Tech did not report the payments described in this paragraph as related party transactions pursuant to Item 13, with reference to Item 404 of Regulation S-K, in its Forms 10-K for the fiscal years ended September 30, 1996 or September 30, 1997.
+
+    F. The loans and transactions through the undisclosed bank account, as described above, were effected to conceal the company's original improper recognition of revenue from the fiscal 1993 shipments.  The concealment ended in October 1998 when the undisclosed bank account was discovered by a Laser Tech employee and reported to Laser Tech's independent accountants.  Subsequently, the independent accountants resigned and were replaced by new independent accountants.  Williams and Sevy are no longer employees, officers, or directors of Laser Tech.
+
+    G. Laser Tech, through Williams and Sevy, and at times through Dunne and H. DeWorth Williams, knew or should have known that its annual and quarterly reports filed with the Commission contained false and misleading statements because of the transactions described above.  Laser Tech thus committed violations of Sections 10(b) and 13(a) of the Exchange Act, Rules 10b-5, 13a-1, and 13a-13 thereunder, and Exchange Act Rule 12b-20 for the year ended September 30, 1993, through the quarter ended June 30, 1998.
+
+    H. Laser Tech, through Williams and Sevy, knew or should have known that it was falsifying books, records or accounts subject to Section 13(b)(2)(A) of the Exchange Act, and that it was failing to make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly reflected transactions and dispositions of its assets.  Laser Tech thus committed violations of Sections 13(b)(2)(A) and 13(b)(5) of the Exchange Act and Rule 13b2-1 thereunder.
+
+  
+ IV. 
+
+    Accordingly, IT IS HEREBY ORDERED, pursuant to Section 21C of the Exchange Act, that Laser Tech cease and desist from committing or causing any violation and any future violation of Sections 
+
+  10(b), 13(a), 13(b)(2)(A), and 13(b)(5) of the Exchange Act, Rules 10b-5, 13a-1, 13a-13, and 13b2-1 thereunder, and Exchange Act Rule 12b-20.
+
+    By the Commission.
+
+                Jonathan G. Katz
+               Secretary
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1238.txt b/raw/aaer/2000/AAER-1238.txt
new file mode 100644
index 0000000000000000000000000000000000000000..2a9bdc5b37193f72ede1e36eb9fbb1fc8674d180
--- /dev/null
+++ b/raw/aaer/2000/AAER-1238.txt
@@ -0,0 +1,1364 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | David W. Williams and Pamela J. Sevy 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/482891","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              David W. Williams and Pamela J. Sevy
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        David W. Williams and Pamela J. Sevy
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              UNITED STATES SECURITIES AND EXCHANGE COMMISSION
+  Litigation Release No. 16476  /  March 20, 2000
+
+    Accounting and Auditing Enforcement
+ Release No.  1238 / March 20, 2000
+
+    Securities and Exchange Commission v. David W. Williams and Pamela J. Sevy , Civil Action No. 00-B-596 (D. Colo.) 
+
+  On March 20, 2000, the United States Securities and Exchange Commission filed a civil injunctive case against two former officers of Laser Technology, Inc. ("Laser Tech"), a public company based in Englewood, Colorado, for falsifying the company's accounting records and periodic reports filed with the Commission.  At the same time, the Commission instituted cease-and-desist proceedings against Laser Tech and two directors for their roles in the violations.  The Commission's complaint in the civil injunctive case alleges that former president and chief executive officer David W. Williams and former chief financial officer Pamela J. Sevy caused Laser Tech in 1993 to improperly record revenue for speed guns shipped to an Australian distributor.  They then engaged in a series of steps for several years to conceal the improper accounting, including the creation and use of a secret bank account.  Specifically, Williams, with Sevy's assistance, lent money to the Australian distributor, who used it to pay for the speed guns.  Williams and Sevy then caused Laser Tech to repay the loans that Williams and another officer had previously taken out.
+
+  The concealment began to unravel in October 1998 when a Laser Tech employee reported the undisclosed bank account to Laser Tech's independent accountants.  The independent accountants resigned in December 1998, an event that Laser Tech reported to the public and the Commission on a Form 8-K. 
+
+  The complaint alleges that Williams and Sevy violated the antifraud provisions of the federal securities laws by engaging in the conduct described in the complaint.  The complaint further alleges that Williams and Sevy falsified Laser Tech's accounting records and made false statements to Laser Tech's auditors, and that they aided and abetted Laser Tech in making false statements in its public filings and failing to maintain complete and accurate accounting records.  The complaint seeks permanent injunctions against Williams and Sevy to prevent future violations of the securities laws, and the imposition of civil penalties against them.  Simultaneously with the filing of the case, Williams and Sevy consented to entry of permanent injunctions without admitting or denying the allegations in the complaint, and agreed to pay civil penalties of $25,000 and $10,000 respectively.  Williams and Sevy are specifically charged with violations of Sections 10(b) and 13(b)(5) of the Exchange Act and Exchange Act Rules 10b-5, 13b2-1, and 13b2-2; they are charged with aiding and abetting violations of Section 13(a) and 13(b)(2)(A) of the Exchange Act and Exchange Act Rules 13a-1, 13a-13, and 12b-20.
+
+    In the cease-and-desist proceedings the Commission brought similar charges against Laser Tech, and also alleged that two Laser Tech directors, H. DeWorth Williams (David Williams' brother) and Jeremy G. Dunne, caused the company to make false statements in public filings by not reporting personal transactions that they had with the company.  DeWorth Williams allegedly reimbursed Laser Tech for monies that the company paid to David Williams.  Dunne provided some of the funds that David Williams loaned to the Australian distributor, and then was reimbursed by Laser Tech.  Laser Tech, DeWorth Williams, and Dunne settled the proceedings by consenting to cease-and-desist orders without admitting or denying the allegations.  For more information on the cease-and-desist proceedings, see Exchange Act Release Numbers  34-42549 ,  34-42548 , and  34-42547 . 
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1239.txt b/raw/aaer/2000/AAER-1239.txt
new file mode 100644
index 0000000000000000000000000000000000000000..42f385f4062193cc51f2e144a516d89c8f4a2dde
--- /dev/null
+++ b/raw/aaer/2000/AAER-1239.txt
@@ -0,0 +1,1368 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Micro Warehouse, Inc. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/482911","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Micro Warehouse, Inc.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Micro Warehouse, Inc.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              Litigation Release No. 16480 / March 22, 2000 
+
+   Accounting and Auditing Enforcement
+ Release No. 1239 / March 22, 2000 
+
+ 
+  Former Chief Accounting Officer of Micro Warehouse Enjoined and Barred for Central Role in Financial Reporting Fraud; Former Senior Accounting Manager Enjoined and Penalized 
+
+   Securities and Exchange Commission v. Eric P. Furman and Stephen M. Hieber , U.S. District Court for the D. of Connecticut, Civil Action No 3:00CV520 (DJS).  
+
+ The SEC today announced the filing of a settled complaint for financial reporting fraud against Eric P. Furman, age 37, of Cooper City, Florida, and Stephen M. Hieber, age 34, of Danbury, Connecticut. Under the settlement, Furman, the former chief accounting officer of Micro Warehouse, Inc., consented to a permanent injunction against violating the securities laws, a bar from acting as an officer or director of a public company, and a bar from appearing as an accountant before the SEC. Hieber, a former senior accounting manager, consented to a permanent injunction against violating the securities laws, and payment of a penalty of $20,000. Micro Warehouse is a catalog seller of personal computers and related software and accessories, headquartered in Norwalk, Connecticut. 
+
+ According to the complaint, which was filed in the U.S. District Court for the District of Connecticut, Furman and Hieber created the illusion that each quarter the company´s financial results met or exceeded projections and analysts´ expectations. While the fraudulent scheme lasted, from January 1994 to June 1996, Furman and Hieber caused Micro Warehouse to over-state the profits that it reported to the public by $45 million. Furman and Hieber falsified the company´s books and records, primarily those relating to expenses and liabilities for accounts payable, and misled Micro Warehouse´s auditors and senior officers regarding the falsified books and records. As a result of the scheme, Micro Warehouse made at least thirteen false filings with the SEC on Forms 10-K, 10-Q and S-3, each of which materially misstated the company´s results of operations and financial condition. In 1994 Micro Warehouse over-stated income from operations by $12.2 million, or approximately 27 percent. In 1995 Micro Warehouse over-stated income from operations by $21.5 million, or approximately 29 percent. For the six months ended June 30, 1996, Micro Warehouse over-stated income from operations by $11.5 million, or approximately 100 percent. 
+
+ Under the settlements, which must be approved by the Court, Furman and Hieber each consent, without admitting or denying the complaint´s allegations, to final judgments which restrain and enjoin them from violating or aiding and abetting violations of the anti-fraud, reporting, books and records, and internal controls provisions of the federal securities laws [Section 17(a) of the Securities Act of 1933 and Sections 10(b), 13(b)(2) and 13(b)(5) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1, 13a-13, 13b2-1 and/or 13b2-2 promulgated thereunder.] Furman also consented to a bar from acting as an officer or director of a public company. No civil penalty was imposed against Furman based upon his demonstrated financial inability to pay. Hieber also consented to payment of a civil monetary penalty of $20,000. 
+
+ As part of his settlement, Furman also consented to a Commission Order which denies him the privilege of practicing before the Commission as an accountant. Pending approval of the settled injunctive action by the Court, the Commission will institute an administrative proceeding against Furman pursuant to the Commission's Rule of Practice 102(e). Furman is a certified public accountant licensed to practice in New York, and Furman will neither admit nor deny the findings in the Commission's Order. 
+
+ Micro Warehouse previously consented to the issuance of a Commission Order requiring that it cease and desist from committing or causing any violation and any future violations of the anti-fraud, reporting, books and records, and internal controls provisions of the federal securities laws. [ See , Securities Act Release No. 33-7707; Exchange Act  Release No. 34-41665 ; Accounting and Auditing Enforcement Release No. 1144; Administrative Proceeding File No. 3-9940, dated July 28, 1999]. 
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1240.txt b/raw/aaer/2000/AAER-1240.txt
new file mode 100644
index 0000000000000000000000000000000000000000..6a49de24cf64b64c86da6673e384947c4d444eb8
--- /dev/null
+++ b/raw/aaer/2000/AAER-1240.txt
@@ -0,0 +1,1495 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Jill Pitts and Janet Hanson 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359891","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Jill Pitts and Janet Hanson
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Jill Pitts and Janet Hanson
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+
+ Release No. 42569 / March 23, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+
+ Release No.  1240 / March 23, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+
+ File No. 3-10166
+ 
+      
+        In the Matter of 
+        Jill Pitts and Janet Hanson   
+      Respondents.     
+     
+       : : : : : : :   
+       
+      ORDER INSTITUTING CEASE   AND-DESIST PROCEEDINGS
+      TO PURSUANT TO SECTION 21C      OF THE SECURITIES EXCHANGE  ACT 
+      OF 1934, MAKING FINDINGS AND ORDERING RESPONDENTS TO CEASE AND DESIST       I. 
+
+   The Securities and Exchange Commission (Commission) deems it appropriate that cease-and-desist proceedings be instituted pursuant to Section 21C of the Securities Exchange Act of 1934 (Exchange Act) against Jill Pitts (Pitts) and Janet Hanson (Hanson). 
+
+   In anticipation of the institution of these cease-and-desist proceedings, Pitts and Hanson have each submitted an Offer of Settlement which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the Commission's findings, except as to jurisdiction and those findings contained in paragraph II.A. below, which are admitted by Hanson, and the findings contained in paragraph II.B. below, which are admitted by Pitts, Pitts and Hanson consent to the entry of this Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings and Ordering Respondents to Cease and Desist (Order). 
+
+   Accordingly,  IT IS ORDERED  that cease-and-desist proceedings pursuant to Section 21C of the Exchange Act be, and hereby are, instituted.   
+
+ II. 
+
+   On the basis of this Order and the Offers of Settlement submitted by Pitts and Hanson, the Commission finds that  1  : 
+
+   A. Hanson, age 60, is a resident of Minerva, Ohio.  From 1979 to in or about June 1996, Hanson was employed as an inventory clerk and production control manager at a subsidiary of ABS Industries, Inc. ("ABS"). 
+
+   B. Pitts, age 28, is a resident of Minerva, Ohio.  From July 1993 to in or about June 1996, Pitts was employed as the accounts receivable clerk by a subsidiary of ABS Industries, Inc. ("ABS"). 
+
+   C. At all relevant times, ABS, a Delaware company with its corporate headquarters in Willoughby, Ohio, was the holding company for two wholly owned subsidiaries, which produced and machined cold and warm forgings for the automotive and light truck industries.  At all relevant times, ABS' securities were registered with the Commission under Section 12(g) of the Exchange Act.  Thus, pursuant to Section 13(a) of the Exchange Act and the rules and regulations promulgated thereunder, ABS was required to and did file with the Commission certain periodic and other informational reports on Forms 10-Q and 10-K.  These periodic reports contained ABS' consolidated financial statements, which were derived from the books and records of ABS and its two subsidiaries.   
+
+   D. Beginning in at least fiscal year 1994 through at least the first three quarters of fiscal year 1995:  the President and Chief Executive Officer of ABS (Chief Executive Officer); the Chief Accounting Officer of ABS (Chief Accounting Officer); the Corporate Controller of both of ABS' subsidiaries (Controller); and the General Manager of one of ABS' subsidiaries (General Manager) engaged in a scheme to defraud the market by prematurely recording sales and accounts receivable at ABS through its subsidiaries.  They engaged in a scheme to record sales from purported "bill and hold" transactions where, among other things: the customers had not requested that the transactions be on a bill and hold basis; the product being recorded as "sold" had not yet been billed or shipped to the customer, who had no fixed commitment to purchase the goods; and, in some cases, the goods were not even complete.  Such "sales" were booked without regard to commercial reality but, among other things, for the purpose of meeting the sales projections and goals set by the Chief Executive Officer.  These "bill and hold" transactions were included in ABS' accounts receivable, sales, net income, and earnings per share during the relevant period.  Those figures were then included in ABS' consolidated financial statements.  As a result, ABS made material misrepresentations and omitted to state material facts in its Form 10-K for fiscal year 1994 and materially overstated its accounts receivable, sales, net income and earnings per share in ABS' Forms 10-Q for the first three quarters of 1995.    
+
+   E. In furtherance of the scheme, among other things, at the 1994 fiscal year end in October 1994 and at the end of the first three quarters of fiscal year 1995, the Chief Accounting Officer and the Controller directed Hanson to prepare a list of all inventory located on the premises at ABS' subsidiaries that had not been shipped to customers.  During all relevant periods, these lists included work-in-process, i.e., goods that were not yet completely manufactured.  The Chief Accounting Officer and the Controller then reviewed this list, designated the specific inventory to be recorded as "bill and hold" sales, and directed Hanson to create a final list of the "bill and hold" sales.  At the direction of the Chief Accounting Officer and the Controller, Pitts recorded these purported "bill and hold" sales in her sales journals, created invoices for the "bill and hold" sales, and discarded the customer copy of the "bill and hold" invoice so that the customers would not be billed for these purported "sales."  The customers did not receive an invoice for the "bill and hold" product unless that product was actually shipped to the customer.  If the product was shipped, Pitts issued a credit memo for the dollar amount of the product shipped against the prior "bill and hold" invoice and created a new invoice for the "bill and hold" product that was actually sent to the customer for payment.  Moreover, the Chief Accounting Officer directed Pitts to discontinue the prior practice of sending statements to customers, because the purported "bill and hold" products on the statements could raise questions or cause problems with the customers.   
+
+   F. During the third quarter of 1995, ABS did not have enough finished or unfinished inventory to meet the Chief Executive Officer's sales goals and projections.  At the direction of the Chief Accounting Officer and the Controller, Hanson and Pitts caused ABS to record approximately $3.5 million dollars in "bill and hold" sales for goods that had not yet begun the manufacturing process.  The Chief Accounting Officer and the Controller directed Hanson and Pitts to record these "bill and hold" sales, and instructed Hanson and Pitts not to tell anyone else about these transactions.  Pitts first attempted to record these sales by creating four large invoices for each customer order.  When the Chief Accounting Officer saw the size of the invoices, he instructed her to create several smaller invoices in smaller dollar amounts so that the sales would not raise a red flag to anyone reviewing the books.   
+
+   G. Further, periodically in fiscal year 1995, the Chief Accounting Officer directed Pitts to "freshen" certain accounts receivable that were "non-current", or over 90 days old, to make the receivables "current".  Many of the "freshened" receivables related to "bill and hold" products that had not yet been shipped.  At least $5.8 million in receivables were "freshened" during fiscal year 1995. 
+
+   H. As a result of this scheme, ABS reported in its 1994 Form 10-K, among other things, "record" sales of $92,122,000, which sales figures were also reported in a press release issued to the public.  These figures overstated ABS' 1994 financial condition as follows:  (1) sales were overstated by at least 3.21%; (2) accounts receivable were overstated by at least 16.35%; (3) pre-tax income was overstated by at least 2.48%; (4) net income was overstated by at least 2.31%; and (5) earnings per share was overstated by at least 2.08%.  Moreover,  ABS failed to disclose in its 1994 Form 10-K that management had adopted a policy of booking "bill and hold" sales without regard to commercial reality but solely for the purpose of meeting the Chief Executive Officer's sales goals and projections.  ABS also failed to disclose that its "record" sales were due, in part, to purported "bill and hold" sales recorded pursuant to that policy.  These misrepresentations and omissions were material to a reasonable investor.   
+
+   I. Further, as a result of this scheme, in the first three quarters of fiscal year 1995, ABS recorded material amounts of improper "bill and hold" sales, including those discussed in paragraph F, and thereby, materially overstated its sales, accounts receivable, pre-tax income, net income, and earnings per share.  These figures were included in ABS' Forms 10-Q for the first three quarters of 1995.  These figures were also reported in press releases issued to the public.  These figures materially overstated ABS' 1995 financial condition as follows: (1) sales were overstated by at least 17.99%, 21.16% and 6.46% for the first three quarters of 1995, (2) accounts receivable were overstated by at least 20.12%, 23.64%, and 5.93% in the first three quarters of 1995, and (3) pre-tax, net income, and earnings per share were overstated by at least 129.61%, 43.90%, and 123.08% for the first, second and third quarters of 1995. 
+
+   J. On January 10, 1996, ABS issued a press release which stated, among other things, that it would restate downward its results for the first three quarters of 1995 and that it would also restate the results of its 1993 and 1994 financial statements.  According to the press release, such restatement was necessary because certain previously reported sales were recognized prematurely, as the criteria for revenue recognition had not been met.  On the day following the January 10, 1996 press release, the closing price of ABS common stock fell to $3.75/share from the January 10 closing price of $6.75/share, a decline of 44% in the value of the stock.  On February 13, 1996, ABS' three main lenders filed an involuntary petition against ABS' two subsidiaries under Chapter 11 of the Bankruptcy Code and petitioned for the appointment of a trustee in bankruptcy for the two subsidiaries.  On June 28, 1996, substantially all of the operating assets of the two subsidiaries were sold to a third party. 
+
+   K. As a result of the above conduct, ABS violated Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13, and 13b2-1 promulgated thereunder.  The Chief Executive Officer and Chief Accounting Officer violated Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5, 13b2-1, and 13b2-2 promulgated thereunder, and as control persons of ABS, violated sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 promulgated thereunder.  The Controller violated Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5, 13b2-1 and 13b2-2 promulgated thereunder.  The General Manager violated Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-1 promulgated thereunder. 
+
+   L. Under these circumstances, Pitts and Hanson knew or should have known that their actions would contribute to, and were a cause of, the above violations of Sections 13(a), 13(b)(2)(A), 13(b)(2)(B), and 13(b)(5) of the Exchange Act, and Rules 12b-20, 13a-1, 13a-13, and 13b2-1 promulgated thereunder. 
+
+ III. 
+
+   In view of the foregoing, it is appropriate to impose the sanctions specified in the Offers of Settlement.  2   
+
+   Accordingly,  IT IS ORDERED,  pursuant to Section 21C of the Exchange Act, that: 
+
+   Pitts and Hanson cease and desist from committing or causing any violation and any future violation of Section 13(b)(5) of the Exchange Act and Rule 13b2-1 promulgated thereunder, and from causing any violation and any future violation of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 promulgated thereunder.  
+
+   By the Commission.
+
+                Jonathan G. Katz
+
+               Secretary 
+   Footnotes  
+   1    The findings herein are made pursuant to Respondents' Offers of Settlement and are not binding on any other person or entity in this or any other proceeding. 
+
+   2    In determining to accept the Offers of Settlement, the Commission considered the cooperation the Respondents afforded the Commission staff. 
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1241.txt b/raw/aaer/2000/AAER-1241.txt
new file mode 100644
index 0000000000000000000000000000000000000000..1d27f2c54c775299163d34fe1f777972d120ab5f
--- /dev/null
+++ b/raw/aaer/2000/AAER-1241.txt
@@ -0,0 +1,1525 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Nanette Miller, CPA 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359886","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Nanette Miller, CPA
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Nanette Miller, CPA
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ Securities Exchange Act of 1934
+ Release No. 42586 / March 29, 2000
+
+  Accounting and Auditing Enforcement
+ Release No.  1241 / March 29, 2000
+
+  Administrative Proceeding
+ File No. 3-10167
+  
+
+      
+ In the Matter of    
+ 
+NANETTE MILLER, CPA   
+  Respondent.  
+   
+
+   : : : : : : :     
+   
+   ORDER INSTITUTING   
+PROCEEDINGS MAKING FINDINGS 
+AND IMPOSING A 
+SANCTION PURSUANT TO  
+RULE 102(e) OF THE 
+COMMISSION'S RULES OF PRACTICE       I. 
+
+    The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and they hereby are, instituted pursuant to Rule 102(e)(1)(ii) of the Commission's Rules of Practice against Nanette Miller ("Miller").  1     II. 
+
+    In anticipation of the institution of these administrative proceedings, Miller has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission or in which the Commission is a party, Miller, without admitting or denying the findings, except as to jurisdiction, which is admitted, consents to the issuance of this Order Instituting Proceedings, Making Findings And Imposing A Sanction Pursuant To Rule 102(e) Of The Commission's Rules Of Practice ("Order") and to the imposition of the remedial sanction set forth below.
+     III. 
+
+     FINDINGS 
+
+    On the basis of this Order and the Offer submitted by Miller, the Commission finds that:
+
+     BACKGROUND 
+
+  A. Miller is 40 years old and has been licensed as a certified public accountant since November 1984 in the State of Maryland.  At the time of the transactions and events described in this Order, Miller was a partner in Chadbourne & Miller ("C&M"), then a public accounting firm with offices located in Washington, D.C. 
+
+  B. C&M was the outside auditor for Underwriters' Financial Group, Inc. ("UFG"), formerly a public company engaged in the insurance brokerage business with principal offices located in New York, New York.  At the time of the transactions and events described in this Order, UFG's common stock was registered with the Commission pursuant to Section 12(b) of the Securities Exchange Act of 1934 ("Exchange Act") and traded on the American Stock Exchange.
+
+  C. In May 1995, UFG filed its annual report on Form 10-K for the year ended December 31, 1994 ("1994 Form 10-K").  In financial statements that were contained in the 1994 Form 10-K, UFG reported pre-tax net income of $521,192, which was overstated by approximately $5,687,000.  This overstatement was attributable to UFG's falsification of the books and records from which the financial statements were prepared and other fraudulent conduct described in subparagraph D below.
+
+  D. During its year ended December 31, 1994 ("YE 1994"), UFG misappropriated several million dollars from premium finance companies and other parties with whom UFG transacted insurance business.  UFG used the misappropriated funds to pay UFG's operating expenses and for other purposes.  UFG failed to record the liability arising from the misappropriation of funds and, instead, recorded a portion of the misappropriated funds as income to UFG.  During YE 1994, UFG also improperly purged certain accounts payable from its books and records and simultaneously recognized those purged amounts as income.
+
+  E. C&M audited the financial statements that were contained in UFG's 1994 Form 10-K and issued an audit report that was included in the 1994 Form 10-K.  Miller participated in the field work done in connection with the audit and signed C&M's name to the audit report.  C&M's audit report contained an opinion in which it represents that it conducted an audit in accordance with Generally Accepted Auditing Standards ("GAAS") and that UFG's financial statements, presented fairly, in all material respects, UFG's financial position and results of operations in conformity with Generally Accepted Accounting Principles ("GAAP").  Both of these representations were inaccurate.
+
+     DEPARTURES FROM GAAS 
+
+     Failure to Obtain Sufficient Competent Evidential Matter 
+
+  F. GAAS states that "[s]ufficient competent evidential matter is to be obtained through inspection, observation, inquiries, and confirmations to afford a reasonable basis for an opinion regarding the financial statements under audit."  American Institute of Certified Public Accountants,  Professional Standards  § 326.01 (1997).  "When evidential matter can be obtained from independent sources outside an entity, it provides greater assurance of reliability for the purposes of an independent audit than that secured solely within the entity."   Professional Standards  § 326.21a.  
+
+  G. Miller failed to obtain sufficient competent evidential matter to determine whether UFG's financial statements accurately recorded, in all material respects, UFG's actual income and accounts payable.  Miller relied extensively on information provided by UFG, often in the form of oral representations of management, and failed to obtain sufficient documentary and other evidence from independent sources to verify management's representations.  Miller's failure to obtain sufficient competent evidential matter to support the audit report resulted from her failure to exercise due professional care in the performance of the audit, her failure to maintain an attitude of professional skepticism and her lack of independence. 
+
+     Failure to Exercise Due Professional Care 
+
+  H. GAAS requires auditors to exercise due professional care in performing an audit and preparing the report.   Professional Standards  § 230.01.  In the course of performing an audit, the auditor must employ "such skill as [he or she] possess[es] with reasonable care and diligence . . . undertak[ing] for good faith and integrity, but not for infallibility."   Professional Standards  § 230.03.  The matter of due professional care concerns what the auditor does and how well he does it.   Professional Standards  § 230.04.
+
+  I. Miller and another C&M accountant requested that UFG management provide to C&M specific documentary evidence supporting a sampling of a material amount of commission income recorded by UFG.  Management represented to Miller that the requested documentation was unavailable and agreed to write-off the unsupported commission income.  Miller did not exercise due professional care regarding this circumstance because she failed to (i) question why the supporting documents were unavailable and why UFG agreed to write-off a material amount of purportedly bona fide income; and (ii) conduct further procedures to determine whether there was other income that lacked sufficient competent evidential support.
+
+  J. UFG was also unable to produce documentation requested by C&M accountants relating to other aspects of the audit.  In those cases, Miller and another C&M accountant performed alternative audit procedures that were not adequately designed and did not produce sufficient competent evidential matter to support the original audit objectives.      
+
+     Failure to Maintain an Attitude of Professional Skepticism 
+
+  K. GAAS states that audits should be planned and performed with an attitude of professional skepticism.  GAAS requires that "[t]he auditor neither assumes that management is dishonest nor assumes unquestioned honesty.  Rather, the auditor recognizes that conditions observed and evidential matter obtained, including information from prior audits, need to be objectively evaluated to determine whether the financial statements are free of material misstatement."   Professional Standards  § 316A.16.
+
+  L. Miller failed to maintain an attitude of professional skepticism during the audit.  Miller accepted, without adequate inquiry, management's explanation that in order to clear accounts payable from the general ledger, UFG had to write a check to itself.  Miller did not take adequate steps to determine whether UFG's debts to creditors had been properly satisfied and whether income was being improperly recorded when these checks were deposited.
+
+     Failure to Maintain An Independence In Mental Attitude 
+
+  M. GAAS requires that "[i]n all matters relating to the assignment, an independence in mental attitude is to be maintained by the auditor or auditors."   Professional Standards  § 150.02.  The Commission requires compliance with substantially the same standard in Section 210.2-01(b) of Regulation S-X.  The threat of litigation by a client against the auditor in connection with audit work for the client is presumed to place the auditor in a situation in which normal audit communication will be affected by legal considerations.   Codification of Financial Reporting Policies  § 602.02.i.ii.  "Accordingly, the . . . expressed threat of such litigation would adversely affect the independence of the accountant."   Id .    
+
+  N. Miller failed to maintain an independence in mental attitude with respect to the UFG audit.  Before field work was complete, Miller and another C&M accountant advised counsel for UFG that they had concerns about possible illegal conduct at UFG and that C&M was considering the possibility of withdrawing from the audit.  In response, counsel raised the possibility of litigation against C&M if C&M withdrew from the audit.  As a result of this threat, Miller requested UFG to agree to hold C&M harmless in the event of a withdrawal.  
+
+  O. The threat of litigation adversely affected Miller's independence and objectivity.  Nevertheless, C&M completed the audit and, through Miller, issued an unqualified audit report.
+
+           *      *      * 
+
+  P. The financial statements that were contained in UFG's 1994 Form 10-K did not present fairly, in all material respects, UFG's financial position and results of operations for YE 1994 in conformity with GAAP.
+
+     CONCLUSION 
+
+  Q. By reason of the foregoing, (i) the audit of UFG's financial statements for YE 1994 was not conducted in accordance with GAAS; and (ii) Miller engaged in improper professional conduct within the meaning of Rule 102(e)(1)(ii) of the Commission's Rules of Practice with respect to the audit of UFG's financial statements for YE 1994.
+
+     IV. 
+
+     ORDER IMPOSING SANCTIONS 
+
+    Based on the foregoing, the Commission deems it appropriate and in the public interest to accept the sanction specified in the Offer submitted by Miller, and accordingly,  
+
+     IT IS HEREBY ORDERED , effective immediately, that Miller is denied the privilege of appearing or practicing before the Commission as an accountant.
+
+    By the Commission.
+
+                  Jonathan G. Katz
+
+                 Secretary
+   Footnote 
+
+
+   1   Paragraph (1)(ii) of Rule 102(e) provides, in relevant part, as follows:
+
+(1)  The Commission may deny, temporarily or permanently, the privilege of appearing or practicing before it in any way to any person who is found by the Commission after notice of and opportunity for hearing in the matter . . . (ii) to be lacking in character or integrity or to have engaged in . . . improper professional conduct. 
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1242.txt b/raw/aaer/2000/AAER-1242.txt
new file mode 100644
index 0000000000000000000000000000000000000000..311386890e4438e1b3c09d9116fbb41dfc90236d
--- /dev/null
+++ b/raw/aaer/2000/AAER-1242.txt
@@ -0,0 +1,1378 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Donald Ferrarini, Bruno Rumignani, Howard Miller, Mark Bailine, Frank Palumbo 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/482956","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Donald Ferrarini, Bruno Rumignani, Howard Miller, Mark Bailine, Frank Palumbo
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Donald Ferrarini, Bruno Rumignani, Howard Miller, Mark Bailine, Frank Palumbo
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              Litigation Release No. 16489 / March 29, 2000
+
+  Accounting and Auditing Enforcement
+ Release No. 1242 / March 29, 2000 
+
+   Securities and Exchange Commission v. Donald Ferrarini, Bruno Rumignani, Howard Miller, Mark Bailine, Frank Palumbo , Civil Action File No. 98 Civ. 0629 (SWK) (S.D.N.Y. January 29, 1998)
+
+  The Securities and Exchange Commission announced today that it accepted settlement offers made by the last two defendants in the civil injunctive action that the Commission filed on January 29, 1998 in federal court in New York, New York against five former executives of Underwriters Financial Group, Inc. ("UFG"), a bankrupt insurance brokerage company.  The Commission's complaint alleges that the defendants carried out a multi-million dollar financial fraud scheme whereby they falsely portrayed UFG's financial condition for the years ended December 31, 1993 and December 31, 1994 and the quarters ended March 31, 1994, June 30, 1994, September 30, 1994 and March 31, 1995.  In a related administrative proceeding instituted by the Commission, the Commission also accepted a settlement offer made by the certified public accountant who issued an audit report on UFG's financial statements for 1994.
+
+  Two of the defendants settled the Commission's charges when the federal court action was filed, and the other remaining defendant, Howard Miller, is now deceased.  The Commission has filed a notice of dismissal of the complaint as to Howard Miller.
+
+  The two remaining defendants in the federal court action were:
+
+   Donald Ferrarini ("Ferrarini") , age 71, was chief executive officer, president and chairman of the board of directors of UFG.
+
+   Bruno Rumignani ("Rumignani") , age 57, was executive vice president and a director of UFG .
+
+  The accountant named in the administrative proceeding is:
+
+   Nanette Miller , age 42, was a partner in Chadbourne & Miller, formerly a  public accounting firm and UFG's outside auditor for 1994.    
+
+
+
+  The Commission's complaint alleges that from 1993 to 1995, Ferrarini, Rumignani and the other federal court defendants engaged in a fraudulent scheme whereby UFG fraudulently obtained money from companies with which UFG did business and, by making fictitious and other improper entries on UFG's books and records, improperly included those fraudulently obtained funds as legitimate income.   Ferrarini  directed the fraudulent scheme, and  Rumignani  implemented the scheme by, among other things, forging signatures on documents used to perpetrate the fraud.  In 1999,  Ferrarini  and  Rumignani  were tried and convicted on federal criminal charges stemming from this scheme. As a result of the convictions,  Ferrarini  and  Rumignani  are now serving federal prison sentences of 12 years and 10 years, respectively.  As part of their criminal sentences,  Ferrarini  and  Rumignani  were also ordered to pay restitution in the amount of $6,521,018. 
+
+  In their settlement offers in the Commission's civil action,  Ferrarini  and  Rumignani  consented, without admitting or denying the allegations in the complaint, to the issuance of final judgments permanently enjoining them from:  (i) committing securities fraud in violation of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5; (ii) falsifying corporate books and records, misleading auditors or engaging in other conduct in violation of Section 13(b)(5) of the Exchange Act, Rule 13b2-1 or Rule 13b2-2; and (iii) engaging in conduct as controlling persons that would render them liable pursuant to Section 20(a) of the Exchange Act for violations of corporate reporting, recordkeeping and internal control provisions of the Exchange Act (Sections 13(a) and 13(b)(2) and Rules 12b-20, 13a-1, 13a-11 and 13a-13).   Ferrarini  and  Rumignani  also consented to orders barring them from serving as officers or directors of a public company.  Due to the lengthy prison sentences and the amount of restitution ordered by the criminal court,  Ferrarini  and  Rumignani  were not required to pay civil penalties.   
+
+  Pursuant to  Nanette Miller's  settlement offer, the Commission issued an administrative order under Rule 102(e) of the Commission's Rules of Practice:  (i) finding that  Nanette Miller  engaged in improper professional conduct in connection with the audit of UFG's financial statements for 1994 by disregarding Generally Accepted Auditing Standards in several respects during the audit; and (ii) denying  Nanette Miller  the privilege of appearing or practicing before the Commission as an accountant.   Nanette Miller  consented to the issuance of this order without admitting or denying the Commission's findings.
+   
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1243.txt b/raw/aaer/2000/AAER-1243.txt
new file mode 100644
index 0000000000000000000000000000000000000000..ccb87dfb806ee8694432463b274b6a291b9f2778
--- /dev/null
+++ b/raw/aaer/2000/AAER-1243.txt
@@ -0,0 +1,1598 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Beth A. Morris and Steven H. Grant 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359881","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Beth A. Morris and Steven H. Grant
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Beth A. Morris and Steven H. Grant
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  42587 / March 29, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1243 / March 29, 2000
+
+  ADMINISTRATIVE PROCEEDING
+ File No.  3-10168
+   I. 
+
+      
+ In the Matter of    
+ 
+BETH A. MORRIS 
+and STEVEN H. GRANT    
+  Respondents.    
+
+   : : : : : : : :    
+   
+  ORDER INSTITUTING PUBLIC  
+CEASE-AND-DESIST 
+PROCEEDINGS PURSUANT TO 
+SECTION 21C OF THE  
+SECURITIES EXCHANGE ACT 
+OF 1934, MAKING FINDINGS 
+ AND IMPOSING A CEASE-AND- 
+DESIST ORDER      The Securities and Exchange Commission ("Commission") deems it appropriate to institute public cease-and-desist proceedings pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Respondents Beth A. Morris ("Morris") and Steven H. Grant ("Grant").
+
+   II. 
+
+    In anticipation of the institution of these proceedings, Respondents Morris and Grant submitted Offers of Settlement ("Offers") to the Commission, which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission, or in which the Commission is a party, and without admitting or denying the findings contained herein, except as to the jurisdiction of the Commission over Respondents Morris and Grant and over the subject matter of this proceeding which are admitted, Respondents Morris and Grant by their Offers consent to the entry of this order, and the findings and the imposition of the cease-and-desist order set forth below.
+
+    Accordingly,  IT IS ORDERED  that proceedings pursuant to Section 21C of the Exchange Act be, and they hereby are, instituted.
+ 
+
+   III. 
+
+    On the basis of this Order and the Offers submitted by Respondents Morris and Grant, the Commission finds that:
+
+    Summary  
+
+    This matter involves materially misstated financial statements and other misleading information in quarterly filings made with the Commission on Forms 10-Q for the quarters ended June 30, 1997 and September 30, 1997 by Digital Lightwave, Inc. ("Digital").  Digital's principal accounting officers for the respective quarters were Morris and Grant.  Morris prepared the financial statement included in the June 30, 1997 Form 10-Q and signed the filing on behalf of Digital.  Grant participated in and oversaw the preparation of the financial statements included in the September 30, 1997 Form 10-Q and signed the filing on behalf of Digital.  
+
+    Specifically, Digital's filings with the Commission materially overstated its revenues and accounts receivable by prematurely or incorrectly recognizing revenues on certain transactions which were incomplete or contained contingencies.  In connection with these transactions, Morris and Grant also caused Digital to fail to make and keep books and records which accurately reflected its transactions, and to fail to maintain a system of internal accounting controls sufficient to provide assurances that transactions were recorded as necessary to permit the proper preparation of financial statements in conformity with generally accepted accounting principles ("GAAP").  Morris and Grant also failed to disclose material facts necessary in order to make statements made, in light of the circumstances under which such statements were made, not misleading to Digital's independent auditors in connection with their review of Digital's second and third quarter financial statements, respectively, and Grant made misrepresentations in the third quarter management letter.
+
+    Respondents  
+
+     A.  Beth A. Morris, 45, was Digital's vice-president of finance and principal financial and accounting officer from January 1996 until July 3, 1997.  On July 3, 1997, Morris resigned from Digital and continued working for the company as a part-time consultant until mid-September 1997.  Morris is a certified public accountant licensed in the state of Florida.
+
+     B.  Steven H. Grant, 39, has been Digital's vice-president of finance and chief financial officer since September 15, 1997.  1    Grant is a certified public accountant licensed in the state of Florida.
+
+   Digital's False and Misleading Form 10-Q  
+   for the Quarter Ended June 30, 1997  
+
+    Digital's Form 10-Q for the quarter ended June 30, 1997 contained false financial statements, which materially overstated its revenues by approximately $2.3 million--representing 43.9% of total revenues--and its accounts receivable by approximately $2.33 million representing 5.4% of its total assets.  2     A.  Morris  
+
+    Morris was Digital's vice-president of finance and was responsible for preparing Digital's second quarter financial statements.  She also participated in the preparation of and signed the Form 10-Q for the second quarter. 
+
+     B.      The Bill and Hold Transaction with MFS WorldCom  
+
+    On June 30, 1997, the last day of the quarter, Digital improperly recorded revenues of $1.5 million for 40 units of a 60 unit order from MFS WorldCom Network Services ("MFS").  This was Digital's first bill and hold transaction  3   and represented approximately 28.4% of the company's total sales for that quarter.  Although the transaction was based on a letter agreement with MFS dated July 3, 1997, it was recorded in the second quarter.
+
+    The MFS transaction and the terms and conditions contained in the July 3, 1997 letter agreement did not meet the revenue recognition requirements for bill and hold transactions for several reasons.  First, the MFS letter agreement did not specify that the risk of ownership had passed to MFS.  Second, it was Digital, and not MFS, that decided to structure the transaction as bill and hold.  In addition, the units were not complete and ready for shipment at the time the revenue was recognized as required under bill and hold.  Digital was required to include certain software features into the units.  These features were not required to be incorporated into the units until August 15, 1997 and October 31, 1997.  The units were also not complete because each unit lacked an asynchronous transfer mode ("ATM") board, which was a critical and material component of the units in this order.
+
+    The MFS letter agreement also contained specific performance obligations on the part of Digital such that the earnings process was not complete.  For example, the letter agreement contained penalty clauses if Digital failed to release the required software by certain deadlines. Further, the letter agreement stated that if Digital failed to meet these specified terms and conditions the deal would be null and void.  There was also no fixed delivery schedule contained in the letter agreement as required by bill and hold.  In fact, the units were not shipped to MFS until the end of October 1997.  Finally, payment for the shipment was not required until November 30, 1997, five (5) months after the sale was recognized as revenue.  Indeed, the invoice was not sent until the end of November 1997.  In short, despite terms and conditions contained in the letter agreement, which called into question whether the earnings process was complete at the time the sale was recorded, Digital improperly recorded revenue of $1.5 million for the MFS order.  
+
+    Although Morris was not involved in negotiating the MFS transaction she knew that the transaction had to meet the bill and hold criteria for revenue recognition.  Morris, however, failed to review the MFS sales documentation for compliance with the bill and hold criteria.  Morris did not see a copy of the MFS letter agreement until the day before she was supposed to sign the second quarter Form 10-Q.  After seeing the agreement for the first time, she became concerned about its terms and conditions and drafted a memorandum to the file documenting her concerns with the transaction.  In the memorandum, Morris raised the possibility that Digital might have to establish "reserves" in the third quarter to address this problem.
+
+     C.  The Ameritech and TCG Verbal Purchase Orders  
+
+    During the last four days of the second quarter, Digital improperly recorded revenue on shipments of units to Ameritech Corp. ("Ameritech") and Teleport Communications Group ("TCG").  The Ameritech shipment consisted of seven (7) units which was recorded as revenue totaling $246,750--approximately 4.6% of Digital's revenues for that quarter.  At the time Digital recorded the revenue for these units, this was not a real order.  This is evidenced by a written agreement between Digital and Ameritech which provided that Ameritech would only obligate itself to purchase a unit through a written purchase order ("PO").  These units were in fact not shipped to Ameritech because Digital never received a commitment from Ameritech to purchase them.  Instead, the units were shipped and placed with a Digital salesperson.  Ameritech did not submit POs to Digital committing itself to purchase the units until well after the close of the quarter.  Further, invoices for these units were not issued by Digital until after the company received the POs.  
+
+    The TCG transaction was recorded as revenue totaling $315,750 and was also improperly included in Digital's revenues for the second quarter because TCG had not committed itself to purchase the units.  Consisting of three (3) shipments totaling eight (8) units, this transaction represented approximately 5.9% of Digital's total revenues for that quarter.  Two of the TCG units were shipped directly to a Digital salesperson, who was informed a few weeks later by TCG that it would not be purchasing them.  Five of the units were shipped to TCG's Chicago office where they were immediately refused and returned to Digital's salesperson.  TCG ultimately only purchased one unit in late October 1997.  The other seven returned units were reversed as revenues.
+
+    Morris was not privy to the details surrounding the Ameritech and TCG transactions, including where the units were shipped to and whether they were returned.  She was aware however, at the time she prepared the financial statements, that units had been shipped to Ameritech and TCG based on verbal purchase orders ("Verbal POs"), that lacked proper documentation. 
+
+     D.  The U.S. West Demonstration Units   
+
+    During the last few days of the second quarter, Digital also improperly recorded seven (7) units shipped to U.S. West, Inc. ("U.S. West") as revenues.  These units were in fact, demonstration units for which there was never a firm commitment by U.S. West to purchase them.  In spite of this, Digital recorded these units as revenues totaling $264,450, which represented approximately 5% of the total revenues for the quarter.  The demonstration units were all later returned to Digital and reversed as revenues.  Morris was not aware that the U.S. West units were shipped as demonstration units because Digital senior management negotiated that arrangement and did not alert her to that fact.  However, it was her understanding that the units had been shipped to U.S. West based on Verbal POs that lacked proper documentation.
+
+   Digital's False and Misleading Form 10-Q  
+   for the Quarter Ended September 30, 1997  
+
+    Digital's Form 10-Q for the quarter ended September 30, 1997, contained false financial statements which materially overstated its revenues by approximately $6.6 million--representing 79.3% of total revenues and its accounts receivable by approximately $8.67 million--representing 17.3% of its total assets.
+
+     A.  Grant  
+
+    As Digital's chief financial officer at the end of the third quarter, Grant oversaw the preparation of Digital's third quarter financial statements and signed the company's third quarter Form 10-Q.  Grant was also involved in assisting Digital management in preparing the letter agreements for the bill and hold transactions improperly recorded in the third quarter. 
+
+         B.  The LDDS WorldCom, MFS and Transnetworks Bill and Hold Transactions  
+
+       1.  LDDS WorldCom  
+
+    On September 30, 1997, the last day of the third quarter, Digital improperly recognized $3.475 million as revenue for an order from LDDS WorldCom ("LDDS") for 100 units.  The LDDS order was structured as a bill and hold transaction and constituted approximately 41.7% of Digital's reported revenues that quarter.
+
+    The LDDS transaction, like the MFS order, failed to meet the requirements of revenue recognition for bill and hold transactions.  First, the LDDS letter agreement to purchase the units did not specify that the risk of ownership had passed to LDDS.  The transaction also failed to comply with the requirements of revenue recognition for bill and hold transactions because the agreement contained specific performance obligations on Digital's part. For example, the agreement specified that if Digital failed to meet its terms and conditions the agreement would be null and void.  In addition, Digital's regular billing practice was altered because LDDS was not required to pay for any of the units until after they were shipped, which was not anticipated to happen before 1998.  Finally, LDDS did not provide a fixed delivery schedule to Digital and only committed to take delivery by December 31, 1998.  Despite terms and conditions which violated the bill and hold requirements, Digital improperly recognized $3.475 million in revenue in the third quarter from this transaction.
+
+    Grant participated in drafting the original letter agreement used in the LDDS transaction.  He did not know, however, that certain performance obligations had been inserted by LDDS into the agreement until after Digital's earnings were released to the public.  When he did learn of this and the fact that the units were not anticipated to be shipped to the customer until 1998, he immediately expressed his concerns to a member of Digital's senior management about the transaction.  In response, Grant was assured that the LDDS units would be shipped during the fourth quarter of 1997 and that the transaction would "work out."  Grant was also not aware that the LDDS units had not been manufactured.
+
+       2.  MFS  
+
+    Digital also improperly recognized $750,000 as revenue in the third quarter for the remaining 20 units of the 60 unit order placed by MFS in the second quarter.  This portion of the order constituted approximately 9% of Digital's reported revenues during the third quarter.  As discussed above, the MFS transaction violated the requirements of revenue recognition for a bill and hold transaction.  For example, among other things, the MFS letter agreement did not specify that the risk of ownership had passed, and the letter agreement contained specific performance obligations by Digital, and had no fixed delivery schedule.  Grant failed to verify whether the MFS transaction met the requirements of revenue recognition for a bill and hold transaction.  
+
+       3.  Transnetworks  
+
+    Digital also entered into a bill and hold transaction with Transnetworks, Inc. ("Transnetworks") on the last day of the third quarter.  This order, which consisted of 40 units, was improperly recognized as $900,000 in revenue--approximately 10.8% of Digital's reported revenues in that quarter.
+
+    The Transnetworks transaction violated the requirements of revenue recognition for bill and hold transactions.  First, like the prior bill and hold transactions, the agreement did not specify that the risk of ownership had passed to Transnetworks.  In addition, Digital was required to incorporate certain software features into the units which were not anticipated to be completed until the third quarter of 1998.  Moreover, as required in a bill and hold transaction, Transnetworks did not provide a fixed delivery schedule to Digital.  Transnetworks, in fact, never accepted delivery of any of the units.  Finally, Digital's regular billing practice was altered from "net 30" because Transnetworks was not obligated to pay for the units until after 1997.  Despite terms that clearly did not meet the requirements of revenue recognition for bill and hold transactions, Digital improperly recognized the transaction as revenue.  Grant participated in drafting the letter agreement used in the Transnetworks transaction.  He was privy to its terms and conditions except he was not aware that the transaction was contingent upon the release of certain software features, which were not anticipated until 1998.
+
+     C.  The Advantis and NEC America Verbal Purchase Orders   
+
+       1.  Advantis  
+
+    On September 30, 1997, the final day of the third quarter, Digital recognized $1.104 million in revenue for a 37 unit order from Advantis, which was based on a verbal commitment from one of Advantis' employees.  This order constituted approximately 13.2% of Digital's reported revenues that quarter.  The day after the revenue was recorded, the sales department advised Digital's senior management, other than Grant, that there were problems with the order and that Advantis would not be sending a PO or other confirmation of the order.  In a desperate attempt to secure a bona fide commitment for the sale, Digital's vice-president of sales was sent to Advantis.  While at Advantis, the salesperson kept Digital's senior management, other than Grant, apprised of the situation. Eventually, they were informed that due to budgetary constraints, even if Advantis were to place an order, it would not exceed $724,000.  After two weeks of futile effort, the salesperson was unable to secure a commitment from Advantis to purchase the units.
+
+    Despite not having received any commitment from Advantis to purchase the units,  Digital improperly included the Advantis transaction as third quarter revenues.  4    In fact, as of the date its third quarter Form 10-Q was filed, Digital still had not received any written commitment from Advantis to purchase the units.
+
+    Grant knew that Digital lacked written documentation to support the Advantis transaction. When Grant became concerned about the lack of paperwork for the transaction, he attempted to have Digital's third quarter press release and conference call with analysts delayed. Senior management, however, refused to delay the press release and conference call claiming that the paperwork was on its way and that the transaction would "work out".  Grant never knew about some of the specific problems that had been encountered with the transaction.  Digital's senior management had kept that information from him.  Grant later did learn, prior to executing Digital's Form 10-Q, that the Advantis order had been reduced to $724,000. 
+
+       2.  NEC America   
+
+    On September 30, 1997, Digital also improperly recognized $386,610 as revenue for a purported ten (10) unit order from NEC America ("NEC").  This transaction, which constituted approximately 4.6% of Digital's reported revenues for that quarter, was recorded in response to an NEC employee who had indicated some interest in purchasing the units.  Digital knew that NEC required POs and budget allocation before NEC would obligate itself to purchase the units.  In the interim, the units were shipped and placed with a Digital salesperson until a commitment to purchase was received from NEC.  The units were ultimately never purchased by NEC.  The salesperson later returned the units to Digital and they were reversed as revenue.  Grant was aware that Digital had shipped the NEC units to a Digital salesperson, but he did not know about the specifics of the transaction, i.e., that NEC required POs and a budget allocation.
+
+   Misleading Statements and Omissions in Connection with Independent Auditors' 
+  Quarterly Reviews of Digital's Financial Statements   
+
+    On July 10, 1997, Digital's independent auditors ("auditors") conducted a quarterly review of Digital's financial results for the second quarter of 1997.  Although Morris met with the auditors during the review, she failed to disclose to them the company's activities with regard to revenue recognition.  Specifically, Morris never alerted the auditors to the fact that 28.4% of Digital's revenues for the quarter were based on the bill and hold transaction with MFS.  Morris knew that the transaction had to meet certain criteria for revenue recognition, but yet, never reviewed the transaction documents to verify whether the order could be recognized as revenue.  In addition, Morris did not seek any guidance from the auditors with regard to recording revenues solely on Verbal POs which she knew lacked supporting documentation.  
+
+    The auditors also conducted the review of Digital's third quarter financial statements on October 15, 1997.  Grant was asked to handle the management interview with the auditors.  At that meeting, Grant never alerted the auditors that more than 70% of Digital's reported revenues for the quarter were in the form of bill and hold transactions.  In addition, he failed to inform the auditors of concerns that he had because Digital had not received a written commitment for the Advantis transaction.
+
+    In connection with their third quarter review, the auditors were provided with a management representation letter, which made representations as of October 15, 1997.  The third quarter management letter was signed by Grant.  This letter misrepresented, among other things, that: (1) "[t]here are no material transactions that have not been properly reflected in the financial statements"; (2) "[t]here have been no changes during the nine months ended September 30, 1997 in the company's accounting principles and practices" and (3) "[t]he company's accounting principles, and the practices and methods followed in applying them, are as disclosed in the financial statements".
+
+    Legal Discussion  
+
+     A.  Violations of Rule 13b2-2  
+
+    Exchange Act Rule 13b2-2 prohibits officers and directors of an issuer from making or causing to be made, materially false or misleading statements or omissions to an accountant, in connection with any audit or examination of the issuer's financial statements required by Section 13(b)(2), or the filing of any documents with the Commission.  In connection with the auditors' review of Digital's financial statements for the second quarter, Morris failed to disclose to the auditors that Digital had recognized revenue based on a bill and hold transaction nor did she seek any guidance from the auditors with regard to recording revenues solely on Verbal POs.  In connection with the third quarter review, Grant failed to disclose to the auditors his concerns regarding the Advantis transaction and that a substantial portion of Digital's revenues were bill and hold transactions.  Further, Grant made misrepresentations to the auditors in the third quarter management letter.  Morris and Grant, therefore, failed to disclose material facts necessary in order to make statements made, in light of the circumstances under which such statements were made, not misleading to Digital's independent auditors in connection with their review of Digital's second and third quarter financial statements, respectively, thereby violating Rule 13b2-2.
+
+     B. Violations of Section 13(a) of the Exchange Act and Rules 12b-20,
+        and 13a-13 thereunder 
+
+    Section 13(a) of the Exchange Act requires issuers with securities registered under Section 12 of the Exchange Act to file periodic reports containing information prescribed by specific Commission rules and regulations.  Such reports must be complete and accurate.  Rule 13a-13 requires the filing of quarterly reports on Form 10-Q.  Rule 12b-20 requires that periodic reports filed with the Commission contain all such further material information as is necessary to make the required statements, not misleading.  An issuer violates these provisions if it files a periodic report that contains false or misleading information.   See   e.g. ,  Laser Photonics, Inc. , Securities Act Release No. 7463 (Sept. 30, 1997); and  Spectrum Information Technologies, Inc. , Securities Act Release No. 7426 (June 25, 1997).  In addition, Item 303 of Regulation S-K requires MD&A as part of periodic reports filed pursuant to Section 13(a).  Item 303 specifies that, for interim periods the MD&A include, among other things, a discussion of any material changes in the registrants results of operations with respect to the most recent fiscal year-to-date period for which an income statement is provided and corresponding year-to-date period of the preceding fiscal year.
+
+    Digital at all times relevant herein, was subject to the reporting requirements of Section 13(a) of the Exchange Act and rules promulgated thereunder.  The reporting provisions are violated when false and misleading reports are filed.   SEC v. Falstaff Brewing Corp. , 629 F.2d 62, 67 (D.C. Cir. 1980);  SEC v. Great American Industries , 407 F.2d 453 (2d Cir. 1968).  These reporting violations deprive investors of accurate and reliable financial information.  In particular, interim financial reporting, as reflected in quarterly reports on Form 10-Q, is an important part of the full disclosure principle underlying the federal securities laws because investors rely on, and react quickly to, quarterly reports.  Since interim financial statements are unaudited, the investment community places particular reliance on the issuer and its management to accurately report interim results.  Morris and Grant caused Digital's violations of Section 13(a) and Rules 12b-20 and 13a-1 thereunder, by preparing the false and misleading quarterly reports on Forms 10-Q filed by Digital with the Commission.  Morris and Grant should not have signed the quarterly filings until they were completely satisfied that their concerns and objections with the transactions were fully resolved.  They also should have verified that each bill and hold transaction met the criteria for revenue recognition.      
+
+     C.  Violations of Section 13(b)(2) of the Exchange Act  
+
+    Section 13(b)(2) of the Exchange Act was enacted to promote the reliability and completeness of financial information disclosed by issuers.   SEC v. Worldwide Coin Investments Ltd. , 567 F. Supp. 724, 747 (N.D. Ga 1983).  Section 13(b)(2)(A) of the Exchange Act requires an issuer to make and keep books, records and accounts which in reasonable detail, accurately and fairly reflect its transactions and dispositions of assets.  Section 13(b)(2)(B) of the Exchange Act requires an issuer to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurance that, among other things, transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability of assets.
+
+    Morris and Grant caused Digital to fail to make and keep books and records which accurately reflected its transactions, and to fail to maintain a system of internal accounting controls sufficient to provide assurances that transactions were recorded as necessary to permit the proper preparation of financial statements in conformity with GAAP.  In particular, Morris and Grant permitted certain transactions to be improperly recorded as revenues and accounts receivables on Digital's books and records.  In addition, Morris and Grant failed to implement internal controls sufficient to ensure that bill and hold transactions and Verbal POs were being properly recorded as revenues.  Therefore, Morris and Grant caused Digital's violations of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act.
+
+    Legal Findings  
+
+     A.  Based upon the aforesaid conduct, Respondent Morris committed violations of Rule 13b2-2 of the Exchange Act and was a cause of Digital's violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20 and 13a-13 promulgated thereunder.
+
+     B.   Based upon the aforesaid conduct, Respondent Grant committed violations of Rule 13b2-2 of the Exchange Act and was a cause of Digital's violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20 and 13a-13 promulgated thereunder.
+
+   IV. 
+
+    Accordingly,  IT IS ORDERED,  pursuant to Section 21C of the Exchange Act that:
+
+     A.  Morris cease and desist from committing or causing any violation and any future violation of Rule 13b2-2 of the Exchange Act and causing any violation and any future violation of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20 and 13a-13 promulgated thereunder.
+
+     B.  Grant cease and desist from committing or causing any violation and any future violation of Rule 13b2-2 of the Exchange Act and causing any violation and any future violation of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20 and 13a-13 promulgated thereunder.
+
+    By the Commission.    
+
+              Jonathan G. Katz
+                    Secretary
+   Footnotes 
+
+  1 Grant did not actually begin working full-time until September 29, 1997.  
+  2 In amended Forms 10-Q filed on April 16, 1998, Digital restated its revenues and accounts receivable for the second and third quarter by approximately $2.7 million and $7.1 million, respectively.  This Order focuses on the more significant transactions which led to the restatements and does not include several smaller transactions that would account for the difference between the restated revenues and the revenues at issue here. 
+
+  3  A bill and hold transaction is where a customer agrees to purchase a product but the seller retains physical possession until shipment to the customer.  If certain criteria are met the seller may be allowed to record the transaction as revenue.   See   In the Matter of Stewart Parness , SEC Exchange Act Release No. 23507, AAER Release No. 108 (August 5, 1986).   
+
+  4  Digital treated this transaction as a bill and hold transaction since the company had no immediate plans to ship the units to Advantis.  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1244.txt b/raw/aaer/2000/AAER-1244.txt
new file mode 100644
index 0000000000000000000000000000000000000000..0e90c2da0550e236e20ad63af630c940647c06cc
--- /dev/null
+++ b/raw/aaer/2000/AAER-1244.txt
@@ -0,0 +1,1606 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Seth P. Joseph 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359876","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Seth P. Joseph
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Seth P. Joseph
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  42588 / March 29, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1244 / March 29, 2000
+
+  ADMINISTRATIVE PROCEEDING
+ File No. 3-10169
+
+  
+
+      
+In the Matter of   
+ 
+SETH P. JOSEPH   
+  Respondent.   
+   
+
+  : : : : : : : :   
+   
+ ORDER INSTITUTING PUBLIC  
+CEASE-AND-DESIST 
+PROCEEDINGS PURSUANT TO 
+SECTION 21C OF THE 
+SECURITIES EXCHANGE ACT 
+OF 1934, MAKING FINDINGS 
+AND IMPOSING A CEASE-AND-
+DESIST ORDER      I. 
+
+    The Securities and Exchange Commission ("Commission") deems it appropriate to institute public cease-and-desist proceedings pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Respondent Seth P. Joseph ("Joseph").
+
+   II. 
+
+    In anticipation of the institution of these proceedings, Respondent Joseph submitted an Offer of Settlement ("Offer") to the Commission, which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission, or in which the Commission is a party, and without admitting or denying the findings contained herein, except as to the jurisdiction of the Commission over Respondent Joseph and over the subject matter of this proceeding which are admitted, Respondent Joseph by his Offer consents to the entry of this order, and the findings and the imposition of the cease-and-desist order set forth below.
+
+    Accordingly,  IT IS ORDERED  that proceedings pursuant to Section 21C of the Exchange Act be, and they hereby are, instituted.
+
+
+   III. 
+
+    On the basis of this Order and the Offer submitted by Respondent Joseph, the Commission finds that:
+
+    Summary  
+
+    This matter involves materially misstated financial statements and other misleading information in quarterly filings made with the Commission on Forms 10-Q for the quarters ended June 30, 1997 and September 30, 1997 by Digital Lightwave, Inc. ("Digital").  As Digital's senior executive vice-president, Joseph was responsible for drafting Digital's contracts and agreements, and for supervising the company's financial reporting.  As part of these responsibilities, Joseph also reviewed and participated in the drafting of the Forms 10-Q, including the Management Discussion and Analysis sections and prepared Digital's press releases, which contained false statements of material facts.
+
+    In filings made with the Commission and in press releases, Digital materially overstated its revenues and accounts receivable by prematurely or incorrectly recognizing revenues on certain transactions which were incomplete or contained contingencies.  Joseph was a cause, through his actions or omissions, of Digital's false filings and issuance of false press releases to the public.  In connection with these transactions, Joseph also was a cause, through his actions or omissions, of Digital's failure to make and keep books and records which accurately reflected its transactions, and its failure to maintain a system of internal accounting controls sufficient to provide assurances that transactions were recorded as necessary to permit the proper preparation of financial statements in conformity with generally accepted accounting principles ("GAAP").  Joseph also failed to disclose material facts necessary in order to make statements made, in light of the circumstances under which such statements were made, not misleading to Digital's independent auditors in connection with their review of Digital's second quarter financial statements.
+
+    Respondent  
+
+    Joseph, at all relevant times, was Digital's executive vice-president and a member of its board of directors.  Joseph is an attorney specializing in mergers and acquisitions and corporate securities.  Joseph's employment agreement provided him with authority over financial reporting although he did not have an accounting background or experience.  At all relevant times, Digital also had either a chief accounting officer or chief financial officer who reported to Joseph and who participated in reviewing and approving its financial statements. 
+
+
+   Digital's False and Misleading Form 10-Q  
+
+   for the Quarter Ended June 30, 1997  
+
+    Digital's Form 10-Q for the quarter ended June 30, 1997 contained false financial statements, which materially overstated its revenues by approximately $2.3 million--representing 43.9% of total revenues--and its accounts receivable by approximately $2.33 million representing 5.4% of its total assets.  1     A.      The Bill and Hold Transaction with MFS WorldCom  
+
+    On June 30, 1997, the last day of the second quarter, Digital improperly recorded revenues of $1.5 million for 40 units of a 60 unit order from MFS WorldCom Network Services ("MFS").  This was Digital's first bill and hold transaction  2   and represented approximately 28.4% of the company's total sales for that quarter.  Although the transaction was based on a letter agreement with MFS dated July 3, 1997, it was recorded in the second quarter.
+
+    The MFS transaction and the terms and conditions contained in the July 3, 1997 letter agreement did not meet the revenue recognition requirements for bill and hold transactions for several reasons.  First, the MFS letter agreement did not specify that the risk of ownership had passed to MFS.  Second, it was Digital, and not MFS, that decided to structure the transaction as bill and hold.  In addition, the units were not complete and ready for shipment at the time the revenue was recognized as required under bill and hold.  Digital was required to include certain software features into the units.  These features were not required to be incorporated into the units until August 15, 1997 and October 31, 1997.  The units were also not complete because each unit lacked an asynchronous transfer mode ("ATM") board, which was a critical and material component of the unit.
+
+    The MFS letter agreement also contained specific performance obligations on the part of Digital such that the earnings process was not complete.  For example, the letter agreement contained penalty clauses if Digital failed to release the required software by certain deadlines. Further, the letter agreement stated that if Digital failed to meet these specified terms and conditions the deal would be null and void.  There was also no fixed delivery schedule contained in the letter agreement as required by bill and hold.  In fact, the units were not shipped to MFS until the end of October 1997.  Finally, payment for the shipment was not required until November 30, 1997, five (5) months after the sale was recognized as revenue.  Indeed, the invoice was not sent until the end of November 1997.  In short, despite terms and conditions contained in the letter agreement, which called into question whether the earnings process was complete at the time the sale was recorded, Digital improperly recorded revenue of $1.5 million for the MFS order.  
+
+    On June 30, 1997, Joseph received an electronic message ("e-mail") from Digital's chief accounting officer detailing the criteria for recognizing revenue on bill and hold transactions. Joseph was involved in negotiating the MFS transaction and knew or should have known that the transaction had to meet the revenue recognition criteria for bill and hold.  In drafting the sales contract for the MFS transaction, however, Joseph failed to comply with the requirements of bill and hold.  In addition, prior to drafting and issuing Digital's press release announcing its second quarter financial results and prior to the filing of Digital's second quarter Form 10-Q, there was no conference between Joseph and Digital's chief accounting officer to determine whether she had reviewed the MFS sales documentation and agreed on the appropriateness of recognizing revenue from the transaction. 
+
+     B.  The Ameritech and TCG Verbal Purchase Orders  
+
+    During the last four days of the second quarter, Digital improperly recorded revenue on shipments of units to Ameritech Corp. ("Ameritech") and Teleport Communications Group ("TCG").  The Ameritech shipment consisted of seven (7) units which was recorded as revenue totaling $246,750--approximately 4.6% of Digital's revenues for that quarter.  At the time Digital recorded the revenue for these units, this was not a real order.  This is evidenced by a written agreement between Digital and Ameritech which provided that Ameritech would only obligate itself to purchase a unit through a written purchase order ("PO").  These units were in fact not shipped to Ameritech because Digital never received a commitment from Ameritech to purchase them.  Instead, the units were shipped and placed with a Digital salesperson.  Ameritech did not submit POs to Digital committing itself to purchase the units until well after the close of the quarter.  Further, invoices for these units were not issued by Digital until after the company received the POs.  
+
+    The TCG transaction was recorded as revenue totaling $315,750 and was also improperly included in Digital's revenues for the second quarter because TCG had not committed itself to purchase the units.  Consisting of three (3) shipments totaling eight (8) units, this transaction represented approximately 5.9% of Digital's total revenues for that quarter.  Two of the TCG units were shipped directly to a Digital salesperson, who was informed a few weeks later by TCG that it would not be purchasing them.  Five of the units were shipped to TCG's Chicago office where they were immediately refused and returned to Digital's salesperson.  TCG ultimately only purchased one unit in late October 1997.  The other seven returned units were reversed as revenues.
+
+    Joseph knew or should have known that units had been placed with Digital's salespeople on behalf of Ameritech and TCG based on Verbal POs that lacked proper documentation.  He knew or should have known that under these circumstances it was improper to recognize the associated revenue. 
+
+     C.  The U.S. West Demonstration Units   
+
+    During the last few days of the second quarter, Digital also improperly recorded seven (7) units shipped to U.S. West, Inc. ("U.S. West") as revenues.  These units were in fact, demonstration units for which there was never a firm commitment by U.S. West to purchase them.  In spite of this, Digital recorded these units as revenues totaling $264,450, which represented approximately 5% of the total revenues for the quarter.  The demonstration units were all later returned to Digital and reversed as revenues.  
+
+    Joseph drafted the letter agreement pursuant to which Digital placed the units with U.S. West.  This letter agreement contained material contingencies as to whether U.S. West would ultimately purchase the demonstration units in the future.  Based on this, Joseph knew or should have known that Digital should not recognize these units as revenue in the second quarter.
+
+   Digital's False and Misleading Form 10-Q  
+
+   for the Quarter Ended September 30, 1997  
+
+    Digital's Form 10-Q for the quarter ended September 30, 1997, contained false financial statements which materially overstated its revenues by approximately $6.6 million--representing 79.3% of total revenues and its accounts receivable by approximately $8.67 million--representing 17.3% of its total assets.
+
+         A.  The LDDS WorldCom, MFS and Transnetworks Bill and Hold Transactions  
+
+       1.  LDDS WorldCom  
+
+    On September 30, 1997, the last day of the third quarter, Digital improperly recognized $3.475 million as revenue for an order from LDDS WorldCom ("LDDS") for 100 units.  The LDDS order was structured as a bill and hold transaction and constituted approximately 41.7% of Digital's reported revenues that quarter.
+
+    The LDDS transaction, like the MFS order, failed to meet the requirements of revenue recognition for bill and hold transactions.  First, the LDDS letter agreement to purchase the units did not specify that the risk of ownership had passed to LDDS.  The transaction also failed to comply with the requirements of revenue recognition for bill and hold transactions because the agreement contained specific performance obligations on Digital's part. For example, the agreement specified that if Digital failed to meet its terms and conditions the agreement would be null and void.  In addition, Digital's regular billing practice was altered because LDDS was not required to pay for any of the units until after they were shipped, which was not anticipated to happen before 1998.  Finally, LDDS did not provide a fixed delivery schedule to Digital and only committed to take delivery by December 31, 1998.  Despite terms and conditions which violated the bill and hold requirements, Digital improperly recognized $3.475 million in revenue in the third quarter from this transaction.
+
+    Joseph participated in negotiating the LDDS transaction and was aware that certain performance obligations had been inserted by LDDS into the agreement.  In addition, he knew or should have known that the units were not anticipated to be shipped to the customer until 1998. Further, Joseph knew or should have known that based on the foregoing, the LDDS transaction should not be recognized as revenue because it failed to meet the requirements of bill and hold. 
+
+
+       2.  MFS  
+
+    Digital also improperly recognized $750,000 as revenue in the third quarter for the remaining 20 units of the 60 unit order placed by MFS in the second quarter.  This portion of the order constituted approximately 9% of Digital's reported revenues during the third quarter.  As discussed above, the MFS transaction violated the requirements of revenue recognition for a bill and hold transaction.  For example, among other things, the MFS letter agreement did not specify that the risk of ownership had passed, and the letter agreement contained specific performance obligations by Digital, and had no fixed delivery schedule.  Joseph knew or should have known that the MFS transaction did not meet the requirements of revenue recognition for a bill and hold transaction.  
+
+       3.  Transnetworks  
+
+    Digital also entered into a bill and hold transaction with Transnetworks, Inc. ("Transnetworks") on the last day of the third quarter.  This order, which consisted of 40 units, was improperly recognized as $900,000 in revenue--approximately 10.8% of Digital's reported revenues in that quarter.
+
+    The Transnetworks transaction violated the requirements of revenue recognition for bill and hold transactions.  First, like the prior bill and hold transactions, the agreement did not specify that the risk of ownership had passed to Transnetworks.  In addition, Digital was required to incorporate certain software features into the units which were not anticipated to be completed until the third quarter of 1998.  Moreover, as required in a bill and hold transaction, Transnetworks did not provide a fixed delivery schedule to Digital.  Transnetworks, in fact, never accepted delivery of any of the units.  Finally, Digital's regular billing practice was altered from "net 30" because Transnetworks was not obligated to pay for the units until after 1997.  Despite terms that clearly did not meet the requirements of revenue recognition for bill and hold transactions, Digital improperly recognized the transaction as revenue.  
+
+    Joseph participated in negotiating the Transnetworks transaction and was privy to its terms and conditions.  Therefore, he knew or should have known that the transaction did not comply with the bill and hold criteria for revenue recognition.
+
+
+     B.  The Advantis and NEC America Verbal Purchase Orders   
+
+       1.  Advantis  
+
+    On September 30, 1997, the final day of the third quarter, Digital recognized $1.104 million in revenue for a 37 unit order from Advantis, which was based on a verbal commitment from one of Advantis' employees.  This order constituted approximately 13.2% of Digital's reported revenues that quarter.  The day after the revenue was recorded, the sales department advised Digital's senior management that there were problems with the order and that Advantis would not be sending a PO or other confirmation of the order.  In a desperate attempt to secure a bona fide commitment for the sale, Digital's vice-president of sales was sent to Advantis.  While at Advantis, the salesperson kept Digital's senior management apprised of the situation. Eventually, they were informed that due to budgetary constraints, even if Advantis were to place an order, it would not exceed $724,000.  After two weeks of futile effort, the salesperson was unable to secure a commitment from Advantis to purchase the units.
+
+    Despite not having received any written commitment from Advantis to purchase the units,  Digital improperly included the Advantis transaction as third quarter revenues.  3    In fact, as of the date its third quarter Form 10-Q was filed, Digital still had not received any commitment from Advantis to purchase the units.
+
+    Joseph knew that Digital lacked written documentation to support the Advantis transaction.  Despite this, Joseph permitted Digital to release its third quarter press release and file its Form 10-Q for the quarter ended September 30, 1997, which included the Advantis revenue.  Joseph knew or should have known about the specific problems that had been encountered with the transaction and that the potential order had been reduced in value. Therefore, Joseph knew or should have known that based on the foregoing, Digital could not recognize the revenue associated with the Advantis transaction.
+
+
+       2.  NEC America   
+
+    On September 30, 1997, Digital also improperly recognized $386,610 as revenue for a purported ten (10) unit order from NEC America ("NEC").  This transaction, which constituted approximately 4.6% of Digital's reported revenues for that quarter, was recorded in response to an NEC employee who had indicated some interest in purchasing the units.  Digital knew that NEC required POs and budget allocation before NEC would obligate itself to purchase the units.  In the interim, the units were shipped and placed with a Digital salesperson until a commitment to purchase was received from NEC.  The units were ultimately never purchased by NEC.  The salesperson later returned the units to Digital and they were reversed as revenue.  Joseph knew or should have known that Digital had shipped the NEC units to a Digital salesperson based on a Verbal PO and that the revenue associated with this transaction should not have been recognized.
+
+   Misleading Statements and Omissions in Connection with Independent Auditors'  
+
+   Quarterly Reviews of Digital's Financial Statements   
+
+    On July 10, 1997, Digital's independent auditors ("auditors") conducted a quarterly review of Digital's financial results for the second quarter of 1997.  Joseph met with the auditors during the review, but did not disclose to them that a material portion of Digital's revenue for the quarter was based upon the MFS bill and hold transaction.  At that time, Joseph knew of the criteria for bill and hold and had seen the paperwork on the MFS transaction.
+
+    Digital's False and Misleading Press Releases  
+
+    On July 16, 1997, Digital, issued a press release announcing its second quarter financial results.  The financial information contained in the press release was materially false and misleading because it included revenues from the MFS bill and hold order.  The press release also included revenues for the Ameritech order--for which Digital did not receive a PO until after the press release was issued--and the TCG orders.  In addition, the press release included revenues from the U.S. West demonstration units.  The press release also specifically mentioned U.S. West as a "new customer" despite the fact that U.S. West had purchased no units from Digital and had merely received units on a demonstration basis.  Joseph drafted this press release and knew or should of known that it included revenues, which were not appropriately recognized.
+
+    Digital issued a press release on October 16, 1997, announcing its third quarter results. This press release was also false and misleading because it improperly included revenues based on the fraudulent bill and hold and Verbal PO transactions, which were recorded in the quarter. For example, the press release included the $1.104 million in revenue for the Advantis order, even though the company had received no commitment from Advantis to purchase the units at the time of the announcement. Joseph drafted this press release and knew or should of known that it included revenues, which were not appropriately recognized.
+
+    Legal Discussion  
+
+     A.  Violations of Section 10(b) and Rule 10(b)-5 thereunder  
+
+    Section 10(b) of the Exchange Act and Rule 10b-5 thereunder prohibit a person from making misstatements or omissions of material fact or engaging in any scheme to defraud in connection with the purchase or sale of a security.  Violations of Section 10(b) and Rule 10b-5 occur when an issuer makes material misstatements in registration statements, prospectuses, or periodic reports filed with the Commission and trading thereafter occurs in the issuer's securities.   SEC v. Texas Gulf Sulphur Co. , 401 F.2d 833 (2d Cir. 1968),  cert. denied , 394 U.S. 976 (1969).
+
+    Digital knowingly and/or recklessly filed the false and misleading quarterly reports with the Commission and issued false press releases to the public that materially overstated its revenues, earnings and accounts receivable.  Joseph knew or should have known that Digital's form 10-Qs for the quarters ended June 30, 1997 and September 30, 1997 respectively, contained materially false and misleading financial statements and material omissions. Specifically, Joseph knew or should have known that bill and hold transactions were improperly recorded as revenues on Digital's books in the second and third quarter.  In addition, Joseph knew or should have known that Digital's press releases announcing its quarterly results were false.  As a result, Joseph was a cause, through his actions or omissions, of Digital's violations of Section 10(b) and Rule 10b-5 thereunder. 
+
+     B.  Violations of Rule 13b2-2  
+
+    Exchange Act Rule 13b2-2 prohibits officers and directors of an issuer from making or causing to be made, materially false or misleading statements or omissions to an accountant, in connection with any audit or examination of the issuer's financial statements required by Section 13(b)(2), or the filing of any documents with the Commission.  In connection with the auditors' review of Digital's financial statements for the second quarter, Joseph did not disclose to the auditors that Digital had recognized revenue based on a bill and hold transaction.  Joseph, therefore, failed to disclose material facts necessary in order to make statements made, in light of the circumstances under which such statements were made, not misleading to Digital's independent auditors in connection with their review of Digital's second quarter financial statements, thereby violating Rule 13b2-2.
+
+     C. Violations of Section 13(a) of the Exchange Act and Rules 12b-20, 
+
+       and 13a-13 thereunder  
+
+    Section 13(a) of the Exchange Act requires issuers with securities registered under Section 12 of the Exchange Act to file periodic reports containing information prescribed by specific Commission rules and regulations.  Such reports must be complete and accurate.  Rule 13a-13 requires the filing of quarterly reports on Form 10-Q.  Rule 12b-20 requires that periodic reports filed with the Commission contain all such further material information as is necessary to make the required statements, not misleading.  An issuer violates these provisions if it files a periodic report that contains false or misleading information.   See   e.g. ,  Laser Photonics, Inc. , Securities Act Release No. 7463 (Sept. 30, 1997); and  Spectrum Information Technologies, Inc. , Securities Act Release No. 7426 (June 25, 1997).  In addition, Item 303 of Regulation S-K requires MD&A as part of periodic reports filed pursuant to Section 13(a).  Item 303 specifies that, for interim periods the MD&A include, among other things, a discussion of any material changes in the registrants results of operations with respect to the most recent fiscal year-to-date period for which an income statement is provided and corresponding year-to-date period of the preceding fiscal year.
+
+    Digital at all times relevant herein, was subject to the reporting requirements of Section 13(a) of the Exchange Act and rules promulgated thereunder.  The reporting provisions are violated when false and misleading reports are filed.   SEC v. Falstaff Brewing Corp. , 629 F.2d 62, 67 (D.C. Cir. 1980);  SEC v. Great American Industries , 407 F.2d 453 (2d Cir. 1968).  These reporting violations deprive investors of accurate and reliable financial information.  In particular, interim financial reporting, as reflected in quarterly reports on Form 10-Q, is an important part of the full disclosure principle underlying the federal securities laws because investors rely on, and react quickly to, quarterly reports.  Since interim financial statements are unaudited, the investment community places particular reliance on the issuer and its management to accurately report interim results.  Joseph was a cause, through his actions or omissions, of Digital's violations of Section 13(a) and Rules 12b-20 and 13a-1 thereunder, by reviewing and participating in the drafting of the false and misleading Forms 10-Q filed by Digital with the Commission.  
+
+     D.  Violations of Section 13(b)(2) of the Exchange Act  
+
+    Section 13(b)(2) of the Exchange Act was enacted to promote the reliability and completeness of financial information disclosed by issuers.   SEC v. Worldwide Coin Investments Ltd. , 567 F. Supp. 724, 747 (N.D. Ga 1983).  Section 13(b)(2)(A) of the Exchange Act requires an issuer to make and keep books, records and accounts which in reasonable detail, accurately and fairly reflect its transactions and dispositions of assets.  Section 13(b)(2)(B) of the Exchange Act requires an issuer to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurance that, among other things, transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability of assets.
+
+    Joseph was a cause, through his actions or omissions, of Digital's failure to make and keep books and records which accurately reflected its transactions, and failure to maintain a system of internal accounting controls sufficient to provide assurances that transactions were recorded as necessary to permit the proper preparation of financial statements in conformity with GAAP.  In particular, Joseph permitted certain transactions to be improperly recorded as revenues and accounts receivables on Digital's books and records.  In addition, Joseph failed to implement internal controls sufficient to ensure that bill and hold transactions and Verbal POs were being properly recorded as revenues. Therefore, Joseph was a cause, through his actions or omissions, of Digital's violations of Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act.
+
+    Legal Findings  
+
+    Based upon the aforesaid conduct, Respondent Joseph committed violations of Rule 13b2-2 of the Exchange Act and was a cause of Digital's violations of Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20 and 13a-13 promulgated thereunder.
+
+   IV. 
+
+    Accordingly,  IT IS ORDERED,  pursuant to Section 21C of the Exchange Act that Joseph cease and desist from committing or causing any violation and any future violation of Section 10(b) of the Exchange Act, and Rules 10b-5 and Rule 13b2-2 promulgated thereunder, and causing any violation and any future violation of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20 and 13a-13 promulgated thereunder.
+
+   
+
+ By the Commission.    
+
+              Jonathan G. Katz
+                    Secretary
+
+			   Footnotes 
+
+  1   In amended Forms 10-Q filed on April 16, 1998, Digital restated its revenues and accounts receivable for the second and third quarter by approximately $2.7 million and $7.1 million, respectively.  This Order focuses on the more significant transactions which led to the restatements and does not include several smaller transactions that would account for the difference between the restated revenues and the revenues at issue here. 
+
+  2  A bill and hold transaction is where a customer agrees to purchase a product but the seller retains physical possession until shipment to the customer.  If certain criteria are met the seller may be allowed to record the transaction as revenue.   See   In the Matter of Stewart Parness , SEC Exchange Act Release No. 23507, AAER Release No. 108 (August 5, 1986).   
+
+  3  Digital treated this transaction as a bill and hold transaction since the company had no immediate plans to ship the units to Advantis.  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1245.txt b/raw/aaer/2000/AAER-1245.txt
new file mode 100644
index 0000000000000000000000000000000000000000..fb6775c4df2d0a60475510a9f1ff529126aab77b
--- /dev/null
+++ b/raw/aaer/2000/AAER-1245.txt
@@ -0,0 +1,1387 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Renaissance Capital Management, Inc., NNPD Escrow Holdings Company, Inc., Allen Andrescu, Richard Brower, Mark Coates, Vikram Randhawa, and Tejbir Singh 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/482971","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Renaissance Capital Management, Inc., NNPD Escrow Holdings Company, Inc., Allen Andrescu, Richard Brower, Mark Coates, Vikram Randhawa, and Tejbir Singh
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Renaissance Capital Management, Inc., NNPD Escrow Holdings Company, Inc., Allen Andrescu, Richard Brower, Mark Coates, Vikram Randhawa, and Tejbir Singh
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+  Litigation Release No . 16492 / March 30, 2000
+
+  Accounting and Auditing Enforcement Release No. 1245 
+ SECURITIES AND EXCHANGE COMMISSION v. RENAISSANCE CAPITAL MANAGEMENT, INC., NNPD ESCROW HOLDINGS COMPANY, INC., ALLEN ANDRESCU, RICHARD BROWER, MARK COATES, VIKRAM RANDHAWA AND TEJBIR SINGH, CIV 00 1848 (PLATT) (E.D.N.Y.)
+  
+The Commission announced that it filed a Complaint today in the United States District Court for the Eastern District of New York charging five individuals and two entities with having defrauded at least 89 investors of more than $2.4 million through the sale of unregistered common stock of NNPD Textiles, Inc. ("NNPD") -- a struggling, family-owned knitting business.  The Commission alleges that the individuals charged in the Complaint diverted the proceeds raised from the fraudulent scheme to themselves and to pay personal expenses.  Named in the Complaint are:
+  
+ Renaissance Capital Management, Inc.  ("Renaissance Capital"), a New York corporation that, until April 1999, was located in Farmingdale, New York;
+  
+ NNPD Escrow Holdings Company, Inc.  ("NNPD Escrow"), a New York corporation that, until April 1999, was located in Farmingdale, New York;
+  
+ Allen Andrescu  ("Andrescu"), a 25 year old former resident of Merrick, New York, who is the Chief Executive Officer ("CEO") and sole owner of Renaissance Capital, and who is the CEO and President of NNPD Escrow;
+  
+ Richard Brower,  a 26 year old resident of Merrick, New York, who was employed by Renaissance Capital from May 1997 to June 1998;
+  
+ Mark Coates,  a 28 year old resident of Hempstead, New York, who was employed by Renaissance Capital from May 1997 to January 1998;
+  
+ Vikram Randhawa,  a 29 year old former resident of Albertson, New York, who managed the day-to-day operations of Renaissance Capital from June 1997 to March 1999; and
+  
+ Tejbir Singh  A/K/A Raj Nanvaan, a 22 year old resident of West Babylon, New York, who was employed by Renaissance Capital from February 1998 to June 1998.
+  
+Also named in the Complaint as relief defendants are:
+  
+ Ana Andrescu  ("A. Andrescu"), a 48 year old resident of Massapequa, New York, who is Andrescu's mother and who received at least $19,500 from the proceeds of the sale of NNPD stock;
+  
+ Jon Andrescu  ("J. Andrescu"), a 52 year old resident of Massapequa, New York, who is Andrescu's father and who received at least $9,900 from the proceeds of the sale of NNPD stock; and
+  
+ Magic Knits LTD,  a New York corporation located in Brooklyn, New York, which is wholly owned by J. Andrescu and which received at least $66,000 from the proceeds of the sale of NNPD stock.
+  
+The Complaint alleges that, from at least October 1997 to at least March 1999, Andrescu, Brower, Coates, Randhawa and Singh, through two companies that Andrescu controlled, Renaissance Capital and NNPD Escrow (collectively, the "Defendants"), conducted a fraudulent private placement of NNPD stock.  The Complaint alleges that, among other things, Defendants falsely represented that investors would be able to sell their NNPD shares for a substantial profit in an imminent initial public offering ("IPO") by NNPD, that NNPD projected substantial and growing future revenues, and that the proceeds of the sale of NNPD stock would be paid to NNPD.  According to the Complaint, in fact, there was no real possibility that NNPD would successfully conduct an IPO, the revenue projections were without basis in fact, and, while NNPD received no more than $100,000 of the over $2.4 million raised in the offering, Defendants diverted the bulk of the proceeds raised from the offering to themselves and to pay personal expenses.  The Commission alleges that, through this conduct, Defendants violated the antifraud provisions set forth in Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5.  In addition, the Commission alleges that Defendants violated the registration provisions set forth in Sections 5(a) and 5(c) of the Securities Act by unlawfully selling unregistered NNPD stock.
+  
+The Commission seeks a final judgment permanently enjoining Renaissance Capital, NNPD Escrow, Andrescu, Brower, Coates, Randhawa and Singh, from violating Sections 5 and 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, ordering them to account for and to disgorge their ill-gotten gains plus prejudgment interest, and assessing civil penalties.  The Commission also seeks an order requiring A. Andrescu, J. Andrescu and Magic Knits to account for and to disgorge the amounts they were paid from the proceeds of the sale of NNPD stock plus prejudgment interest.
+  
+
+The Commission thanks the New York Attorney General's Office for its cooperation in this matter.The litigation is pending.
+
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1246.txt b/raw/aaer/2000/AAER-1246.txt
new file mode 100644
index 0000000000000000000000000000000000000000..2fd9d1c9288ccc3c11c4e8ef43710146a0b5bdb4
--- /dev/null
+++ b/raw/aaer/2000/AAER-1246.txt
@@ -0,0 +1,1375 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Allen K. Deary and Dennis A. Fichter 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483091","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Allen K. Deary and Dennis A. Fichter
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Allen K. Deary and Dennis A. Fichter
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              ECURITIES AND EXCHANGE COMMISSION
+  
+Litigation Release No.  16516  / April 13 , 2000
+  
+Accounting and Auditing Enforcement 
+Release No.  1246 / April 13, 2000
+  
+SEC v. ALLEN K. DEARY AND DENNIS A. FICHTER, U.S. District Court for the District of Massachusetts, No.    (April , 2000)
+  
+SEC CHARGES FORMER CFO OF PERITUS SOFTWARE SERVICES, INC. WITH FINANCIAL FRAUD
+  
+The Securities and Exchange Commission announced today that it filed a civil fraud action against Allen K. Deary and Dennis A. Fichter for conducting a scheme to falsely inflate Peritus Software Services, Inc.'s second quarter 1998 revenues.  Peritus, based in Westborough, Massachusetts, sells, among other things, Year 2000 software licenses and services.  Deary is a resident of Carlisle, Massachusetts, and Fichter resides in Easton, Pennsylvania.  Deary and Fichter consented to an injunction and an order requiring them to pay $25,000 and $10,000 in penalties, respectively.
+  
+According to the complaint, Deary, who at the time was Peritus' CFO, caused Peritus to book improperly over $1 million in revenue, which falsely inflated the company's second quarter 1998 revenue by 10% and enabled it to meet analyst estimates.  In order to substantiate Peritus' claim to the revenue, Deary falsely told Peritus' director of finance and its controller that AT&T Corp. had purchased a software license pursuant to a $1.9 million purchase order, and that Peritus had delivered the software to AT&T.  However, Peritus had not sold a software license to AT&T.  
+  
+The complaint also alleges that Deary made the same false statements to Peritus' outside auditors, and received substantial assistance in his scheme from Defendant Fichter, a Peritus account manager.  On July 22, 1998, the evening before Peritus was to announce its second quarter financial results, Peritus' outside auditors informed Deary that the documents did not establish that a sale of a software license to AT&T had occurred.  In response, Deary promptly prepared a letter for the signature of an AT&T official, which purported to document a license agreement between Peritus and AT&T.  Instead of sending the letter to the AT&T official, Deary faxed the letter to Fichter, a former AT&T employee who had just accepted a job at Peritus as an account manager.  The complaint alleges that Fichter forged the signature of the AT&T official and returned the letter to Deary, who faxed it to Peritus' auditors.  As a result, the auditors approved recognition of the revenue. 
+
+   
+According to the complaint, Peritus issued a press release announcing the falsely inflated revenue the next day.  Peritus also included the false financial results in a quarterly report on Form 10-Q  filed with the Commission.  The complaint alleges that Deary approved the press release before it was issued, and he signed the quarterly report as CFO.  Deary, who was promoted to president and CEO of Peritus on August 17, 1998, and had been a director since 1991, resigned as an officer and director on November 3, 1998.  Fichter resigned on December 10, 1998.
+  
+The complaint also alleges that Deary failed to establish an adequate system of internal controls for recording revenue.  As a result, during the third and fourth quarters of 1997, Peritus improperly recorded $1.8 million in revenue for two sales of software licenses before delivery of the software.
+  
+Deary consented to a final judgment permanently enjoining him from violating Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 and Rules 10b-5, 13b2-1 and 13b2-2 thereunder, and from aiding and abetting Peritus' violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 13a-13 and 12b-20, and ordering him to pay a $25,000 penalty.  Fichter consented to a final judgment permanently enjoining him from aiding and abetting Deary's violations of Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-1, and ordering him to pay a $10,000 penalty.  
+  
+The Commission also announced that, in a related matter, it instituted a settled administrative cease-and-desist proceeding against Peritus.  Peritus consented to an Order of the Commission finding that, as a result of the conduct described above, Peritus improperly overstated its revenue by $1.085 million for the second quarter of 1998, and understated its pre-tax loss by the same amount.  The Commission also found that Peritus' internal controls did not ensure that software had been delivered before recognizing revenue on the sale of a software license.  As a result, as stated above, Peritus improperly recorded $1.8 million in revenue during the third and fourth quarters of 1997 for two sales of software licenses before delivery of the software.  Further, due to incorrect accounting, Peritus overstated its revenues by $717,000 for the first quarter of 1998 for one sale of a software license conditioned on the customer's acceptance, and for two combined software license and service transactions.  In October and November 1998, Peritus restated its financial results for the first and second quarters of 1998, the third quarter of 1997, and the year ended December 31, 1997.  The Order requires Peritus to cease and desist from committing future violations of the public company reporting, record-keeping and internal controls provisions of the Exchange Act [Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 13a-1, 13a-13 and 12b-20 thereunder].  
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1247.txt b/raw/aaer/2000/AAER-1247.txt
new file mode 100644
index 0000000000000000000000000000000000000000..951d530d9493c04626012bbaca59f928620c1417
--- /dev/null
+++ b/raw/aaer/2000/AAER-1247.txt
@@ -0,0 +1,1577 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Peritus Software Services, Inc. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359756","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Peritus Software Services, Inc.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Peritus Software Services, Inc.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934  
+
+ Release No. 42673 / April 13, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+
+ Release No.  1247 / April 13, 2000    
+
+ ADMINISTRATIVE PROCEEDING
+
+ File No. 3-10186 
+  
+     
+                                 :
+      In the Matter of           : ORDER INSTITUTING        
+                                 : PROCEEDINGS PURSUANT TO        
+                                 : SECTION 21C OF THE  
+PERITUS SOFTWARE SERVICES, INC., : SECURITIES EXCHANGE ACT        
+                                 : OF 1934, MAKING FINDINGS,  
+                                 : AND IMPOSING CEASE-AND- 
+      Respondent.                : DESIST ORDER
+                                 :
+  
+    
+
+ I. 
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate that cease-and-desist proceedings be, and they hereby are, instituted against Peritus Software Services, Inc. pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act"). 
+
+ II. 
+
+   In anticipation of the institution of these proceedings, Peritus has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings, except those findings pertaining to the jurisdiction of the Commission over it and the subject matter of these proceedings, which Peritus admits, Peritus by its Offer consents to the entry of this Order Instituting Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Cease-And-Desist Order ("Order"). 
+
+ III. 
+
+   On the basis of this Order and the Offer submitted by Peritus, the Commission makes the following findings: 
+
+  A.  Respondent   
+
+    Peritus  is a Massachusetts corporation with its headquarters in Westborough, Massachusetts.  It sells, among other things, licenses to use its Year 2000 software and services.  In 1998, Peritus reported revenues of $31.5 million and a net loss of $26.7 million.  Peritus' common stock is registered with the Commission under Section 12(g) of the Exchange Act and was traded on the NASDAQ national market system from July 2, 1997 until February 3, 1999, when the NASD delisted it for failure to meet the financial criteria for continued listing.  Peritus' stock currently trades on the OTC Bulletin Board operated by the NASD.   
+
+  B.  Facts   
+
+    1.  Summary   
+
+   This matter involves Peritus' material overstatements of revenue and net income, and understatements of losses, in quarterly and annual reports for the periods ended September 30, 1997 through June 30, 1998.  The misstatement for the quarter ended June 30, 1998 occurred because Peritus' former CFO caused the company improperly to record $1.085 million of revenue based on a purchase order for services from a U.S. company. The inclusion of the revenue enabled Peritus to report revenue in line with analysts' estimates.  This revenue was recorded improperly because Peritus had not sold a software license to the U.S. company or performed any services under that purchase order during the quarter.  In order to substantiate Peritus' claim to the revenue, the former CFO falsely told Peritus' director of finance and its controller, as well as the company's outside auditors, that the U.S. company had purchased a software license and services and that Peritus had delivered the software to the U.S. company.  When the auditors, who were examining certain transactions prior to Peritus' announcement of its quarterly financial results, requested that Peritus substantiate that a sale of a software license had occurred, the former CFO obtained a forged letter purporting to document the transaction.  As a result, assuming no other adjustments, Peritus materially overstated its revenue and understated its pre-tax loss by $1.085 million for the quarter ended June 30, 1998.   
+
+   Peritus' misstatements during the third and fourth quarters of 1997 resulted from the company's improper recording of revenue for two transactions for which software was not delivered prior to the end of the quarter.  As a result, Peritus' revenues and net income before taxes were overstated by $1.2 million for the quarter ended September 30, 1997, and its revenues were overstated and its pre-tax loss was understated by $592,000 for the year ended December 31, 1997.  During the first quarter of 1998, Peritus improperly recorded revenue for software licenses associated with certain services.  It was improper to record the revenue because the customers were primarily purchasing services and the services were not performed during the quarter.  As a result, assuming no other adjustments, Peritus' revenues were overstated and its pre-tax loss was understated by $717,000 for the quarter ended March 31, 1998.  1    Peritus' internal controls did not ensure that software had been delivered prior to recognizing revenue on sales of a software license.  As a result of the above-described conduct, Peritus violated the issuer reporting, internal controls and recordkeeping provisions of the Exchange Act. 
+
+    2.  Peritus' Inflated Revenue in the Second Quarter of 1998   
+
+   On June 26, 1998, a U.S. company issued a $1.9 million purchase order to Peritus for software renovation services.  The purchase order stated that it was for services and did not refer to an independent sale of a software license.  Because Peritus had not provided any services to the U.S. company during the quarter under that purchase order, it was not proper to record revenue.  2    However, in an effort to record the revenue, Peritus' former CFO requested that Peritus' salespeople obtain an amended purchase order from the U.S. company, which would refer to a sale of a software license.  The U.S. company refused because the purchase order had already been signed. 
+
+   Thereafter, the former CFO caused Peritus to record a portion of the $1.9 million purchase order, amounting to $1.085 million, as revenue in the quarter ended June 30, 1998.  The former CFO arbitrarily decided to attribute $1.085 of the $1.9 million purchase order to the U.S. company's purported purchase of a software license, which enabled Peritus to report revenue in line with analysts' estimates.  The former CFO falsely told Peritus' director of finance and its controller that the U.S. company had purchased a software license, and that Peritus had delivered the software to the U.S. company.   
+
+   In preparation for a review of the company's second quarter results by its independent auditors, the former CFO requested that an official of the U.S. company sign a letter prepared by the CFO, which referred to services  and  licenses.  At the former CFO's request, the U.S. company official signed the letter.  When he signed the letter, the U.S. company official did not attach significance to the word "licenses."  He intended to purchase only services on behalf of the U.S. company. 
+
+   On July 22, 1998, the evening before Peritus was to announce its second quarter financial results, the independent auditors were completing their review of certain transactions.  The auditors informed the former CFO that the documentation surrounding the U.S. company purchase order, including the letter from the U.S. company official, did not support recognizing revenue based on a sale of a software license.  In response, the former CFO agreed to obtain further documentation of the purported sale.  To that end, he prepared another letter for the signature of the U.S. company official.  This redrafted letter was similar to the first letter, but it included a reference to a software licensing agreement.  Instead of obtaining the signature of the U.S. company official, however, the former CFO faxed the redrafted letter to a former employee of the U.S. company (the "former employee") who had just accepted a position with Peritus but had not yet begun to work there.  The former employee forged the U.S. company's official's signature on the letter and returned it to the former CFO.  Despite his knowledge that the U.S company official had not signed the redrafted letter, the former CFO provided the letter to Peritus' auditors as evidence that a sale of a software license had taken place.  The former CFO also falsely told the auditors that software had been delivered under the purchase order.  As a result, the auditors approved recognition of the revenue. 
+
+
+
+   Recognizing revenue under the U.S. company purchase order did not conform with generally accepted accounting principles ("GAAP").   It was not proper to record revenue for selling a software license to the U.S. company because no such transactions took place.  Instead, Peritus sold services to the U.S. company, and did not provide any services within the quarter under the purchase order.  Thus, no revenue was earned.  As a result of the former CFO's and the former employee's conduct, Peritus' Form 10-Q, assuming no other adjustments, improperly overstated its revenue by $1.085 million, or 10%, and understated its pre-tax loss by the same amount.  Had Peritus not recorded revenue from the transaction with the U.S. company, its reported pre-tax loss of $917,000 would have been $2 million.  3   
+
+    3.  Other Improper Revenue Recognition   
+
+      a. Third and Fourth Quarters of 1997  
+
+   For the third and fourth quarters of 1997, Peritus improperly recorded revenue for two sales of software before delivery of the software.  On or about August 1, 1997, Peritus received a $1.2 million purchase order for licenses of its Year 2000 software.  Peritus did not deliver the software to its customer under this purchase order until November 3, 1997.  Nonetheless, during the quarter ended September 30, 1997, Peritus recognized $1.2 million in revenue based on this transaction, which represented 12% of its reported revenue for that quarter. To recognize revenue on software transactions, GAAP requires that delivery must have occurred.  AICPA Statement of Position 97-2,  Software Revenue Recognition  ("SOP No. 97-2").  In the transaction described in this paragraph, the revenue was improperly recognized because delivery had not occurred prior to the end of the quarter.  As a result, for the quarter ended September 30, 1997, Peritus' Form 10-Q overstated its revenue and pre-tax income by $1.2 million.  The revenue should have been recognized in the following quarter when the software was actually delivered. 
+
+   On or about November 15, 1997, Peritus negotiated a $660,000 contract with a customer for Year 2000 software.  Peritus did not deliver the software to the customer until June 1998.  Nonetheless, during the quarter ended December 31, 1997, Peritus recognized $592,000 in revenue based on that transaction, which represented 4% of its reported revenue for that quarter.  Under SOP No. 97-2, the revenue should not have been recognized because the software was not delivered prior to the end of the quarter.  4    As a result, for the year ended December 31, 1997, Peritus' Form 10-K overstated its revenue and understated its pre-tax loss by $592,000.   
+
+   Peritus improperly recorded revenue from these sales because its internal controls did not ensure that software had been delivered before recognizing revenue on the sale of software.  After receiving the customer agreement, the finance department did not ascertain whether software had been delivered before recognizing revenue.  Instead, the finance department assumed that delivery had taken place and recorded the revenue.  
+
+      b. First Quarter of 1998  
+
+   During the first quarter of 1998, Peritus improperly   reported revenue based on several incomplete transactions.  In mid-February 1998, Peritus negotiated a sale of a software license with a customer that was conditioned on the customer's acceptance of the software within 30 days after installation.  Although the software was installed on March 4, 1998, the customer rejected it on March 26, 1998, which was within the 30-day period.  During the quarter ended March 31, 1998, Peritus recognized $225,000 in revenue on that transaction.  Pursuant to GAAP, the revenue should not have been recognized during the 30-day acceptance period because the sale of the license was incomplete.  Peritus improperly recorded revenue from this sale because the finance department wrongly assumed that delivery had occurred when the agreement was signed in mid-February, and that the 30-day acceptance period had expired in mid-March without customer rejection. 
+
+   In March 1998, Peritus entered into two other contracts to provide software services.  During the quarter ended March 31, 1998, Peritus recognized $401,000 of revenue for software associated with the services on those transactions.  Peritus improperly recorded revenue on these transactions because the finance department misunderstood the relevant accounting provisions.  Under SOP 97-2, it was improper to recognize this revenue because the customers were primarily purchasing services and the services were not performed during the quarter.   
+
+   As a result of the recognition of revenue on these transactions and other less significant transactions, Peritus overstated its revenue by 8% in the quarter ended March 31, 1998.  Assuming no other adjustments, Peritus' Form 10-Q overstated its revenue and understated its pre-tax loss by $717,000 for the quarter ended March 31, 1998.   
+
+    4.  Peritus' Restatements   
+
+   During the fourth quarter of 1998, Peritus announced that it would restate its financial results.  Peritus' restatement reflected the following changes to its reported revenues and earnings.  The restatement included transactions and amounts that are not discussed in detail in this Order: 
+   
+                           Net Income Summary (thousands)  
+                                                                 Percentage
+ Period           Reported        Restated        Variance       Variance
+
+QE 9/30/97      $   1,166       $      84          $(1,082)         1288%
+
+FYE 12/31/97    $ (66,910)      $ (67,490)         $  (580)            1% *
+ 
+QE 3/31/98      $  (2,566)      $  (3,358)         $  (792)           24%
+
+QE 6/30/98      $   (979)       $  (1,839)         $  (860)           47%
+
+  
+
+ * Peritus reported a significant nonrecurring charge in the fourth quarter of its year ended December 31, 1997.  Disregarding that charge, the $580,000 variance was approximately 17% of restated net income. 
+
+
+  
+                            Revenue Summary (thousands)
+				  
+                                                                  Percentage
+Period          Reported          Restated         Variance       Variance 
+
+QE 9/30/97       $ 9,852         $ 8,652           $ (1,200)        14%
+
+FYE 12/31/97     $40,301         $39,709           $   (592)         1%
+
+QE 3/31/98       $10,150         $ 9,433           $   (717)         8%
+
+QE 6/30/98       $11,830         $11,083           $   (747)         7%
+
+  
+  C.  Legal Analysis   
+
+   Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder require issuers whose securities are registered with the Commission pursuant to Section 12 of the Exchange Act to file annual and quarterly reports with the Commission.  Information contained in such reports must be accurate and complete.   See   SEC v. Kalvex, Inc. , 425 F. Supp. 310, 316 (S.D.N.Y. 1975) (requirement that issuer file reports under Section 13(a) embodies the requirement that such reports be true and correct).  Further, Rule 12b-20, promulgated pursuant to Section 12 of the Exchange Act, requires that all reports filed pursuant to Section 13 contain all information necessary to ensure that the statements made are not materially misleading.   Sensormatic Electronics Corp. , Exchange Act Rel. No. 39791, 1998 SEC LEXIS 532 (Mar. 25, 1998).  No showing of scienter is necessary to establish a violation of Section 13(a).  SEC v. Savoy Indus., Inc. , 587 F.2d 1149, 1167 (D.C. Cir. 1978).  The financial information contained in these periodic reports must conform with Regulation S-X, which generally requires conformity with GAAP.  Sensormatic , 1998 SEC LEXIS 532.   
+
+   GAAP requires the following for the recognition of revenue from the sale of software:  (a) persuasive evidence of an arrangement exists; (b) delivery has occurred; (c) the vendor's fee is fixed or determinable; and (d) collectibility is probable.  SOP No. 97-2.  Peritus' financial statements in Forms 10-Q and 10-K filed with the Commission for the third quarter of 1997 and the year ended December 31, 1997 did not conform with the revenue recognition requirements of GAAP because they included sales for which delivery had not occurred.  Peritus' financial statements in Form 10-Q filed with the Commission for the second quarter of 1998 did not conform with the revenue recognition requirements of GAAP because the financial statements included $1.085 million in revenue from the U.S. company transaction.  Revenue should not have been recognized on this transaction because no sale took place and no services were provided during the quarter under the purchase order.  Peritus' financial statements in Forms 10-Q for the first and second quarters of 1998 did not conform with the revenue recognition requirements of GAAP because they included revenue from software associated with certain services that were not performed prior to the end of the quarter and revenue from a sale of a software license that was conditioned on acceptance of the software.  As a result, Peritus violated Section 13(a) of the Exchange Act and Rules 13a-1, 13a-13 and 12b-20 thereunder because it included in its financial results revenue that was not recorded in conformity with GAAP.       
+
+   Section 13(b)(2)(A) of the Exchange Act requires every reporting company to make and keep accurate books, records and accounts.  Section 13(b)(2)(B) of the Exchange Act requires every reporting company to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP.  Peritus violated Section 13(b)(2)(A) by maintaining books and records which reflected revenue and income from sales transactions which did not conform with the GAAP standards for revenue recognition.  Peritus violated Section 13(b)(2)(B) by failing to devise and maintain a system of adequate internal controls which, among other things, would ensure verification of delivery prior to the recognition of revenue on each software license transaction.  
+
+ IV. 
+
+   Based on the foregoing, the Commission finds that Peritus committed violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 13a-1, 13a-13 and 12b-20 thereunder, and deems it appropriate to accept the Offer submitted by Peritus and issue the cease-and-desist order specified herein. 
+
+ V. 
+
+   In determining to accept the Offer, the Commission considered remedial acts promptly undertaken by Peritus and cooperation afforded the Commission staff. 
+
+ VI. 
+
+   Accordingly,  IT IS ORDERED,  pursuant to Section 21C of the Exchange Act, that Peritus cease and desist from committing or causing any violation and any future violation of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 13a-1, 13a-13 and 12b-20 thereunder. 
+
+   By the Commission.
+
+              Jonathan G. Katz
+
+             Secretary 
+
+
+   Footnotes  
+   1     During the fourth quarter of 1998, Peritus announced that it intended to restate its 
+
+financial results for the first and second quarters of 1998, the third quarter of 1997, and the year ended December 31, 1997. 
+
+   2     Under generally accepted accounting principles, revenue for providing services can be recognized only upon completion of all or a portion of the services.  Revenue from a sale of a software license can be recognized on delivery, assuming no significant future obligations remain at the date of delivery. 
+
+   3     Contemporaneous with the entry of this Order, the Commission is filing a civil injunctive action in the U.S. District Court for the District of Massachusetts against the former CFO and the former employee.  The action against the former CFO alleges that he violated Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5, 13b2-1 and 13b2-2 thereunder, and that he aided and abetted Peritus' violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 13a-13 and 12b-20 thereunder.  The action against the former employee alleges that he aided and abetted the former CFO's violations of Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-1 thereunder.  Without admitting or denying the allegations of the complaint, the former CFO has consented to the entry of a permanent injunction and a $25,000 penalty, and the former employee has consented to the entry of a permanent injunction and a $10,000 penalty.  
+
+
+
+    4     SOP 97-2 was effective for Peritus in 1998.  SOP 91-1,  Software Revenue Recognition , which was superseded by SOP 97-2, was in effect for Peritus in 1997.  The noted requirements of SOP 97-2 are consistent with the provisions of SOP 91-1.  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1249.txt b/raw/aaer/2000/AAER-1249.txt
new file mode 100644
index 0000000000000000000000000000000000000000..61d4f5b9e85c8f41e7cacff30240e3eda5302d61
--- /dev/null
+++ b/raw/aaer/2000/AAER-1249.txt
@@ -0,0 +1,1452 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Aura Systems Inc., Zvi Kurtzman, Francis T. Phalen andJoseph Bevacqua 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359736","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Aura Systems Inc., Zvi Kurtzman, Francis T. Phalen andJoseph Bevacqua
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Aura Systems Inc., Zvi Kurtzman, Francis T. Phalen andJoseph Bevacqua
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  42695 / April 17, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1249 / April 17, 2000
+
+  ADMINISTRATIVE PROCEEDING File No. 3-9138
+
+
+
+     _________________________________          :        :      In the Matter of    : ORDER GRANTING APPLICATION FOR       Francis T. Phalen, CPA    : REINSTATEMENT TO PRACTICE AS AN        : ACCOUNTANT      _________________________________    :     On October 2, 1996, Francis T. Phalen, CPA ("Phalen") was suspended from appearing or practicing as an accountant before the Commission as a result of settled public administrative proceedings instituted by the Commission against Phalen pursuant to Section 8A of the Securities Act of 1933, Section 21C of the Securities Exchange Act of 1934 and Rule 102(e)(1)(iii) of the Commission's Rules of Practice.  1    This order is issued in response to his application for reinstatement to practice before the Commission as an accountant.
+
+    During its 1993 and 1994 fiscal years, Aura Systems Inc. ("Aura") filed with the Commission annual and quarterly reports that described, in false or misleading terms, its success in developing new commercial markets for products using its proprietary electromagnetic technology.  At all relevant times, Phalen was senior vice president and chief financial officer of Aura, and was thus responsible for the preparation of Aura's financial statements which were filed with the Commission.
+
+    For its 1993 and 1994 fiscal years, Aura recognized material amounts of revenue on two transactions that were unrelated to its proprietary technology, which, prior to 1990, generated substantially all of Aura's revenues through contracts with the U.S. government and military defense contractors.  These transactions accounted for approximately 22% and 11% of Aura's fiscal 1993 and 1994 revenues, respectively.  In the footnotes to its fiscal 1993 and 1994 financial statements and in the management's discussion and analysis sections of Aura's related Commission filings, Aura included no meaningful discussion of these transactions, and created the false impression that its revenues, and the related increases in such, involved sales of products manufactured by Aura or products that incorporated Aura's proprietary technology.  Furthermore, the lack of substantive disclosure created the misleading impression that Aura was succeeding in its strategy to develop expanded commercial markets for its products and services, in light of declining military demand for such.  Phalen was responsible for and participated in drafting the narrative portions of Aura's financial statements and Commission filings, and, therefore, was responsible for the false and misleading disclosures included therein.
+
+    On the basis of information supplied, representations made, and undertakings agreed to by Phalen, it appearing that Phalen has complied and will continue to comply with the terms of the order suspending him from practice before the Commission as an accountant, that no information has come to the attention of the Commission relating to his character, integrity, professional conduct or qualifications to practice before the Commission that would be a basis for adverse action against Phalen pursuant to Rule 102(e) of the Commission's Rules of Practice, and that Phalen's offer to condition his reinstatement on his undertaking that, if reinstated, he will comply with the terms of the October 2, 1996 suspension order in his practice before the Commission as an accountant, is fair and in the public interest, it is accordingly,
+
+     ORDERED  pursuant to Rule 102(e)(5)(i) of the Commission's Rules of Practice that Francis T. Phalen, CPA is reinstated to appear and practice before the Commission as an accountant.
+
+  By the Commission.
+
+                    Jonathan G. Katz
+                   Secretary
+
+
+  
+   Footnotes 
+ 
+
+    1    See Accounting and Auditing Enforcement Release No. 839, dated October 2, 1996.  Phalen was permitted, pursuant to the order, to apply for reinstatement after three years upon making certain showings.
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1250.txt b/raw/aaer/2000/AAER-1250.txt
new file mode 100644
index 0000000000000000000000000000000000000000..80c9efc1eb833bcbca9265cfa684b00bbe2cd6ef
--- /dev/null
+++ b/raw/aaer/2000/AAER-1250.txt
@@ -0,0 +1,1361 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Bradley J. Buchanan 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483101","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Bradley J. Buchanan
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Bradley J. Buchanan
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              U.S. SECURITIES AND EXCHANGE COMMISSION
+  
+LITIGATION RELEASE NO. 16518 / April 18, 2000
+  
+ACCOUNTING AND AUDITING ENFORCEMENT RELEASE NO. 1250 / April 18, 2000
+  
+Securities and Exchange Commission v. Bradley J. Buchanan, Case No. 1:99CV02567 (ESH) (D.D.C.)
+  SEC GRANTED DEFAULT JUDGMENT AGAINST FORMER GENERAL MANAGER  CHARGED WITH FRAUD 
+ARISING FROM THEFT OF OVER $400,000
+  The Securities and Exchange Commission today announced that on April 5, 2000, the Honorable Ellen S. Huvelle, United States District Judge, District of Columbia, entered a Final Judgment of Permanent Injunction by Default against defendant Bradley J. Buchanan, of Sarnia, Ontario, Canada.  On September 28, 1999, the Commission filed a civil injunctive action alleging that Buchanan, a former employee of a subsidiary of Thor Industries, Inc., stole corporate funds totaling at least $415,000.  According to the Complaint, to conceal his theft, give the appearance that the subsidiary was operating at a profit when it was not, and to earn performance bonuses, Buchanan made false entries to the subsidiary's books and records over a several year period.  The default judgment permanently enjoins Buchanan from further violations of Section 17(a) of the Securities Act of 1933, and from further violations of Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5 and 13b2-1 thereunder.  In addition, the default judgment permanently enjoins Buchanan from aiding and abetting further violations of Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder.  The default judgment also permanently bars Buchanan from acting as an officer or director of any issuer required to file periodic reports with the Commission pursuant to Sections 12 or 15(d) of the Exchange Act.
+  See also Litigation Release No. 16302, and Accounting and Auditing Enforcement Release No. 1172 (September 28, 1999).
+
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1251.txt b/raw/aaer/2000/AAER-1251.txt
new file mode 100644
index 0000000000000000000000000000000000000000..cfb80876de210a0149b91a1d4e472c9c8b05dd01
--- /dev/null
+++ b/raw/aaer/2000/AAER-1251.txt
@@ -0,0 +1,1500 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Charles E. Wessman 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359726","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Charles E. Wessman
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Charles E. Wessman
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES ACT OF 1933
+ Release No.   7854 / April 21, 2000 
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No. 42709 / April 21, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1251 / April 21, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No. 3-9861
+
+
+    In the Matter of  CHARLES E. WESSMAN Respondent.  
+	 ORDER MAKING FINDINGS 
+AND IMPOSING 
+CEASE-AND-DESIST ORDER 
+   I.  
+
+   The Securities and Exchange Commission issued an Order Instituting Public Cease-and-Desist Proceedings pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934 against Charles E. Wessman on April 12, 1999. 
+
+   Mr. Wessman has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings herein, except the jurisdiction of the Commission over him and over the matters set forth herein, which he admits, Mr. Wessman has consented to the entry of this Order Making Findings and Imposing a Cease-and-Desist Order ("Order"). 
+
+ II.  
+
+   On the basis of this Order and the Offer submitted by Mr. Wessman, the Commission finds that: 
+
+   1. Charles E. Wessman, age 49 and a resident of California, is a certified public accountant and a partner at an accounting firm.  Wessman compiled financial statements and reports for Intercontinental Resources, NA, Inc. ("IRC"). 
+
+   2.  Intercontinental Resources, NA, Inc. ("IRC") is a Utah corporation headquartered in Highland, California.  From at least 1996 through July 1998, IRC has offered to sell and/or sold securities in the form of common stock, preferred stock, notes, evidence of indebtedness, and investment contracts. 
+
+   3. In connection with these solicitation activities, IRC sent to shareholders and potential investors certain financial statements and reports compiled by Wessman. Wessman also sent financial statements and reports to certain individuals at IRC's request.  These financial statements and reports included financial statements with a compilation report for the period ended March 31, 1997 ("Compiled Statements").  Wessman's compilation report stated that the Compiled Statements were prepared in conformity with the Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. 
+
+   4. Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder prohibit a person from, directly or indirectly, in or in connection with the offer, purchase or sale of securities by use of the means or instrumentalities of transportation or communication in interstate commerce or by use of the mails, employing devices, schemes or artifices to defraud; making untrue statements of material facts or omitting to state material facts necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading, or obtaining money or property by means of such misstatements or omissions; or engaging in transactions, practices, or courses of business which would or do operate as a fraud or deceit upon the purchasers of securities. 
+
+   5. From at least 1996 through July 1998, IRC violated Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. 
+
+ 6. From at least 1996 through July 1998, Wessman violated Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder or was a cause of the violations referenced in subparagraph 5 above, due to acts or omissions he knew or should have known would contribute to such violations. 
+
+   7. Wessman compiled financial statements and reports for IRC which included untrue statements of material facts and omissions to state material facts in that: 
+
+     a. Assets were incorrectly reported in that: 
+
+       1. Most of IRC's equipment, which was IRC's primary asset, was reported at a value taken from an unverifiable audit report from years before or at a replacement value provided by IRC. 
+
+       2.  Certain property and equipment were not depreciated. 
+
+       3.   Expenses relating to projects in Nigeria and the Ivory Coast were reported as other assets rather than expensed in the period in which they were incurred. 
+
+       4.  Furniture and Fixtures were reported using unverified values. 
+
+     b. Liabilities were incorrectly reported in that: 
+
+       1. Past due salaries of IRC's officers were not reported as liabilities on the balance sheet. 
+
+       2. Notes payable were understated for each period presented. 
+
+     c. If assets and liabilities had been properly presented, the statements would have disclosed that IRC had a negative net worth and negative shareholders' equity because IRC's liabilities exceeded its assets. 
+
+     d. "Revenues" were incorrectly reported for each period presented.  At a minimum, transfer fees received from shareholders should not have been presented as revenues.  If revenues had been properly presented, IRC's financial statements would have disclosed that IRC did not have any revenues during the time periods referenced in the statements. 
+
+     e. IRC was referenced as a "development stage company," but the statements did not disclose cumulative amounts of revenue, expenses, and financial resources since the company's inception. 
+
+     f. The reports accompanying the Statements wrongly indicated that the Statements conformed with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. 
+
+     g. By the foregoing, from at least 1996 through July 1998, Wessman violated or caused violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. 
+
+ III. 
+
+   In view of the foregoing, the Commission finds that it is appropriate to impose the sanctions against Mr. Wessman as agreed to in his offer.  
+
+   Accordingly, IT IS ORDERED that, pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act: 
+
+   Mr. Wessman cease and desist from committing or causing violations or future violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. 
+
+   By the Commission. 
+ Jonathan G. Katz
+  Secretary 
+ 
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1252.txt b/raw/aaer/2000/AAER-1252.txt
new file mode 100644
index 0000000000000000000000000000000000000000..dce5be49c35f8b8f4d36964dd72c132baee74888
--- /dev/null
+++ b/raw/aaer/2000/AAER-1252.txt
@@ -0,0 +1,1509 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Stephen H. Spargo 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359691","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Stephen H. Spargo
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Stephen H. Spargo
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  42742 / May 2, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1252 / May 2, 2000
+
+  ADMINISTRATIVE PROCEEDING
+ File No.  3-10195
+
+   
+
+     ______________________________________                  : ORDER INSTITUTING      In the Matter of               : PROCEEDINGS PURSUANT TO                  : SECTION 21C OF THE                  : SECURITIES EXCHANGE ACT       STEPHEN H. SPARGO, C.P.A.,     : OF 1934 AND RULE 102(e) OF                   : THE COMMISSION'S RULES                  : OF PRACTICE, MAKING       Respondent.              : FINDINGS, IMPOSING         : SANCTIONS AND IMPOSING      ______________________________________     : A CEASE-AND-DESIST ORDER      I. 
+
+    The Securities and Exchange Commission deems it appropriate that proceedings be, and hereby are, instituted against Stephen H. Spargo pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 102(e) of the Commission's Rules of Practice.  1     II. 
+
+    In anticipation of the institution of these proceedings, Spargo has submitted an Offer of Settlement ("Offer") that the Commission has determined to accept.  Solely for the purpose of these proceedings, and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, Spargo, without admitting or denying the findings contained herein, except that he admits the jurisdiction of the Commission over him and over the subject matter of these proceedings, consents to the entry of the findings and the issuance of this Order Instituting Proceedings, Making Findings, Imposing Sanctions and Imposing a Cease-and Desist Order (the "Order").
+
+    Accordingly, IT IS ORDERED that proceedings against Spargo be, and hereby are, instituted. 
+
+   III. 
+
+    On the basis of this Order and the Offer submitted by Spargo, the Commission finds that:  2    A. Stephen H. Spargo, age 42, is a certified public accountant licensed in Pennsylvania.  He was Senior Vice President of Corporate Support Services (the "Accounting Department") for Allegheny Health Education and Research Foundation ("AHERF") from 1993 to on or about June 2, 1997, reporting directly to AHERF's Chief Financial Officer ("CFO").  Spargo worked as a staff accountant for a large accounting firm for three years and was the director of finance and CFO of two community hospitals prior to joining AHERF.  While acting as a staff accountant for the large accounting firm, Spargo participated in one or more audits of the financial statements of public companies, which were included in filings with the Commission.  
+
+  B. AHERF is a Pennsylvania nonprofit healthcare organization formed in 1983.  Until recently, it was the parent holding company and sole member or owner of numerous subsidiaries.  3    On July 21, 1998, AHERF instituted bankruptcy proceedings under Chapter 11 of the United States Bankruptcy Code on behalf of itself and four of these subsidiaries in the U.S. District Court for the Western District of Pennsylvania.
+
+  C. By the time of the bankruptcy in July 1998, AHERF's obligated groups were responsible for, at least, thirteen bond issues, with outstanding debt of more than $900 million.  The obligation to repay debt within AHERF was placed on groups of one or more of its non-profit subsidiaries known as "obligated groups".  By 1997, AHERF had five obligated groups :   Allegheny General Hospital ("Allegheny General"),   Allegheny University Medical Centers, Delaware Valley, Allegheny Hospitals, Centennial ("Centennial"), and Allegheny Hospitals, New Jersey. 
+
+  D. The AHERF obligated groups, through AHERF as their agent, provided to nationally recognized repositories annual Secondary Market Disclosure Reports ("Disclosure Reports") which contained, among other things, a section explaining the financial health of the reporting entity(ies), debt coverage ratios, and attaching audited financial statements. These Disclosure Reports were made available to the public through these repositories and were the most easily accessible source of information for investors and potential investors in AHERF bonds.  
+
+  E. In particular, Delaware Valley was obligated to repay approximately $356 million (original principal amount) of tax-exempt Health Services Revenue Bonds issued in June 1996  (the "Delaware Valley Refinancing").   The refinancing documents required AHERF to provide annually to all nationally recognized repositories: 
+
+      1. Delaware Valley's audited financial statements prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); and
+
+      2. Delaware Valley's Secondary Market Disclosure Report that included, among other things, financial information, debt service coverage ratios and utilization statistics.  
+
+  These documents were made available to the public, including investors in Delaware Valley and other AHERF bond issues, through these repositories.   
+
+  F. AHERF's financial reporting function, including the initial preparation of financial statements, was primarily handled by Spargo's staff in the Accounting Department, although significant aspects of the financial reporting function also were the responsibility of other departments or entities within AHERF.     G. As a member of AHERF senior management, Spargo participated in all significant decisions affecting, among others, Delaware Valley's financial statements.  He oversaw AHERF's accounting department and was responsible for the accuracy of the numbers in the financial statements.  He further received and reviewed drafts of Delaware Valley's 1996 Disclosure Report.   H. Between December 12, 1996 and January 7, 1997, AHERF sent Delaware Valley's 1996 Disclosure Report and audited financial statements to the nationally recognized repositories and numerous other third parties.     I. Delaware Valley's audited financial statements for the year ended June 30, 1996 were materially false and misleading and failed to comply with GAAP in that they materially overstated Delaware Valley's 1996 net income and misrepresented the condition of Delaware Valley accounts receivable.     J. Delaware Valley's 1996 Disclosure Report was materially false and misleading in that it mirrored the numerical misstatements in the 1996 financial statements and it materially misrepresented the condition of Delaware Valley accounts receivable.     K. From, at least, December 1996 through June 2, 1997, Spargo willfully violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder in that he, directly or indirectly, in connection with the purchase or sale of securities, namely, AHERF bonds, by use of any means or instrumentality of interstate commerce, or the mails:  (1) employed devices, schemes or artifices to defraud; (2) made untrue statements of material fact and omitted to state material facts necessary to make the statements made, in light of the circumstances under which they were made, not misleading; and (3) engaged in acts, practices and courses of business which operated as a fraud and deceit upon persons, including the purchasers and prospective purchasers of such securities.  Such violations include his deliberate and/or reckless misrepresentation or failure to disclose, directly or indirectly, to investors: 
+
+      1. the overstatement of Delaware Valley's net income at June 30, 1996 by the failure to adjust Delaware Valley's bad debt reserves to account for uncollectible accounts receivable; and
+
+      2. the misrepresentation of the condition of Delaware Valley accounts receivable in Delaware Valley's 1996 Disclosure Report, including the misrepresentation of the reason for the increase in net accounts receivable.
+
+   IV. 
+
+    On the basis of this Order and the Offer submitted by Spargo, the Commission finds that Spargo willfully violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.  
+
+   V. 
+
+    In view of the foregoing, the Commission deems it appropriate to accept the Offer submitted by Spargo. In determining to accept the Offer, the Commission considered cooperation afforded the Commission staff.
+
+    Accordingly, IT HEREBY IS ORDERED pursuant to Section 21C of the Exchange Act, that Spargo cease and desist from committing or causing any violations and any future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and
+
+    IT IS FURTHER ORDERED, effective immediately, that:
+
+    A.    Spargo is denied the privilege of appearing or practicing before the Commission as an accountant.
+
+    B.      After three years from the date of this Order, Spargo may request that the Commission consider his reinstatement by submitting an application to the Office of the Chief Accountant to resume appearing or practicing before the Commission as:
+
+      1.      a preparer or reviewer, or a person responsible for the preparation or review, of any public company's financial statements that are filed with the Commission. Such an application must satisfy the Commission that Spargo's work in his practice before the Commission will be reviewed either by the independent audit committee of the public company for which he works or in some other acceptable manner, as long as he practices before the Commission in this capacity; and/or
+
+      2.   an independent accountant.  Such an application must satisfy the Commission that:
+
+      (a) Spargo, or the firm with which he is associated, is a member of the SEC Practice Section of the American Institute of Certified Public Accountants Division for CPA Firms ("SEC Practice Section");
+
+      (b) Spargo, or the firm, has received an unqualified report relating to his, or the firm's, most recent peer review conducted in accordance with the guidelines adopted by the SEC Practice Section; and 
+
+      (c) As long as Spargo appears or practices before the Commission as an independent accountant he will remain either a member of the SEC Practice Section or associated with a member firm of the SEC Practice Section, and will comply with all applicable SEC Practice Section requirements, including all requirements for periodic peer reviews, concurring partner reviews, and continuing professional education.
+
+    C.      The Commission's review of an application by Spargo to resume appearing or practicing before the Commission may include consideration of, in addition to the matters referenced above, any other matters relating to Spargo's character, integrity, professional conduct, or qualifications to appear or practice before the Commission.
+
+    By the Commission.
+
+                Jonathan G. Katz
+
+               Secretary
+  
+   Footnotes 
+ 
+
+    1     Paragraph 1 of Rule 102(e) provides in relevant part that:  
+
+  The Commission may ... deny, temporarily or permanently, the privilege of appearing or practicing before it in any way to any person who is found by the Commission after notice and opportunity for hearing in the matter... (iii) [t]o have willfully violated ... any provision of the Federal securities laws or the rules and regulations thereunder.
+
+    2     The findings herein are made pursuant to Spargo's Offer and are not binding on any other person or entity in this or any other proceeding.
+
+    3     AHERF's underlying entities are referred to as "subsidiaries," although technically AHERF was their sole "member", not a shareholder.
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1254.txt b/raw/aaer/2000/AAER-1254.txt
new file mode 100644
index 0000000000000000000000000000000000000000..ee6e843095c514c765c32bf75d22b5164bf53157
--- /dev/null
+++ b/raw/aaer/2000/AAER-1254.txt
@@ -0,0 +1,1369 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | David W. McConnell and Charles P. Morrison 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483181","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              David W. McConnell and Charles P. Morrison
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        David W. McConnell and Charles P. Morrison
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+  
+Litigation Release No. 16534 \ May 2, 2000
+  
+Accounting and Auditing Enforcement Release No. 1254 \ May 2, 2000
+
+  
+SECURITIES AND EXCHANGE COMMISSION v. DAVID W. MCCONNELL AND CHARLES P. MORRISON (United States District Court for the Eastern District of Pennsylvania, Civil Action No.
+ 00 CV 2261)
+   The Securities and Exchange Commission announced today that it filed a complaint in the United States District Court for the Eastern District of Pennsylvania against David W. McConnell, the former chief financial officer of Allegheny Health Education and Research Foundation ("AHERF"), and Charles P. Morrison, the former chief financial officer of AHERF's Delaware Valley region and an AHERF senior vice president, charging them  with securities fraud.  The Commission's Complaint alleges that McConnell and Morrison violated Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 by, among other things, creating, reviewing and approving false financial statements of AHERF and a group of its subsidiaries collectively known as the Delaware Valley Obligated Group ("Delaware Valley"), thereby masking, from at least December 1996 through July 1998, AHERF's severely deteriorating financial condition.  Specifically, the Commission's Complaint alleges that the financial statements overstated:  (a) the 1996 income of Delaware Valley by, approximately, $40 million; (b) the 1997 income of AHERF by approximately $114.3 million; and (c) the 1997 income of Delaware Valley by approximately $59.6 million, in documents issued to the public in December 1996 and February 1998.
+  
+Simultaneously with the filing of the Complaint, McConnell consented, without admitting or denying the allegations of the Complaint, to a permanent injunction enjoining him from violating Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and ordering him to pay a civil monetary penalty of $40,000.
+  
+AHERF is a Pennsylvania nonprofit healthcare organization.  On July 21, 1998, AHERF filed for bankruptcy protection under Chapter 11 of the United States Bankruptcy Code on behalf of itself and four of its subsidiaries in the U.S. District Court for the Western District of Pennsylvania.  By the time of its bankruptcy filing in 1998, groups of one or more of AHERF's subsidiaries ("obligated groups") were responsible for repaying at least thirteen bond issues issued by or for the benefit of these obligated groups, totaling more than $900 million (the "AHERF Bonds").  
+  
+On behalf of the obligated groups, AHERF provided to nationally recognized municipal securities information repositories annual Secondary Market Disclosure Reports which contained a section explaining the financial health of the reporting entity(ies), debt service coverage ratios, and which attached audited financial statements.  The Disclosure Reports were made available to the public through these repositories and were the most easily accessible source of information for investors and potential investors in AHERF bonds.  
+  According to the complaint, between December 12, 1996 and January 7, 1997, AHERF sent Delaware Valley's 1996 Disclosure Report and audited financial statements to the repositories and numerous other third parties.  The Complaint alleges that Delaware Valley's audited financial statements for the year ended June 30, 1996 were materially false and misleading, and failed to comply with Generally Accepted Accounting Principles ("GAAP"), because they materially overstated Delaware Valley's 1996 income by, approximately, $40 million and misrepresented the condition of Delaware Valley accounts receivable.  The complaint further alleges that Delaware Valley's 1996 Disclosure Report was materially false and misleading in that it mirrored the numerical misstatements in the 1996 financial statements and it materially misrepresented the condition of Delaware Valley accounts receivable.  
+  The complaint further alleges that, in February 1998, AHERF distributed its 1997 audited consolidated financial statements with consolidating schedules and consolidated Disclosure Report to the repositories and numerous other third parties.  According to the Complaint, AHERF's audited consolidated financial statements with consolidating schedules for the year ended June 30, 1997, which purported to be prepared in accordance with GAAP, were materially false and misleading and failed to comply with GAAP in that they materially overstated AHERF's 1997 consolidated net income by, approximately, $114.3 million and they materially overstated the 1997 net income of Delaware Valley by, approximately, $59.6 million.   AHERF's 1997 consolidated Disclosure Report allegedly was materially false and misleading in that it:  (1) mirrored the numerical misstatements in the AHERF 1997 audited consolidated financial statements and consolidating schedules;  (2) misrepresented the condition of Delaware Valley accounts receivable; and  (3) misrepresented the financial condition of another AHERF obligated group, namely the Centennial obligated group ("Centennial").
+  
+The Commission also entered two administrative orders related to this case.  Without admitting or denying the Commission's findings, two other members of AHERF's senior management agreed to orders to cease and desist from committing or causing any violation and any future violation of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and barring them pursuant to Rule 102(e) of the Commission's Rules of Practice from appearing or practicing before the Commission as an accountant, with the right to reapply after three years.  See In the Matter of Albert Adamczak, CPA, Exchange Act Release No.42743, dated May 2, 2000; In the Matter of Stephen H. Spargo, CPA, Exchange Act Release No. 42742 , dated May 2, 2000.  
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1255.txt b/raw/aaer/2000/AAER-1255.txt
new file mode 100644
index 0000000000000000000000000000000000000000..133bccf378532a88dd6becb99131d432b956f3bc
--- /dev/null
+++ b/raw/aaer/2000/AAER-1255.txt
@@ -0,0 +1,1491 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Cynthia Pfaltzgraff, CMA 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359681","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Cynthia Pfaltzgraff, CMA
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Cynthia Pfaltzgraff, CMA
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No. 42753 / May 3, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT 
+ Release No. 1255 / May 3, 2000 
+
+ ADMINISTRATIVE PROCEEDING 
+ File No. 3-10198
+
+
+      
+In the Matter of 
+  
+CYNTHIA PFALTZGRAFF, CMA,   
+  Respondent.   
+   
+
+  : : : : : : : :   
+   
+  
+ORDER INSTITUTING PUBLIC
+ PROCEEDING, MAKING FINDINGS AND 
+ ORDER PURSUANT TO RULE 102(e)
+ OF THE COMMISSION'S 
+ RULES OF PRACTICE
+    I. 
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest to institute an administrative proceeding against Respondent Cynthia Pfaltzgraff pursuant to paragraph (3) of Rule 102(e) of the Commission's Rules of Practice [17 C.F.R. §201.102(e)].  1   
+
+   In anticipation of the institution of this proceeding, Pfaltzgraff has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the Commission's findings contained herein, except that she admits the jurisdiction of the Commission over her and over the matters set forth in this Order and admits the Commission's finding that a Final Judgment of Permanent Injunction has been entered against her as set forth in Section II, Pfaltzgraff consents to the entry of findings and the imposition of the remedial sanctions set forth below. 
+
+   II. 
+
+   The Commission finds the following:  2   
+
+   A. At all relevant times, Pfaltzgraff, a certified management accountant, was the controller of Itex Corporation. 
+
+   B. Itex Corporation is a Portland, Oregon based barter exchange business whose stock was listed on the NASDAQ Small Cap market until its delisting in December 1998. 
+
+   C. On September 27, 1999, the Commission filed a complaint against Pfaltzgraff and others in the United States District Court for the District of Oregon.  SEC v. Itex Corporation, Terry L. Neal, Michael T. Baer, Graham H. Norris, Cynthia Pfaltzgraff and Joseph M. Morris , CIV. NO. 99-1361(HA) (D.Ore.).  The Commission's complaint alleged, among other things, that:  (1) from at least December 1993 through February 1998, Pfaltzgraff, as controller of Itex, knowingly or recklessly participated in material overstatement of  Itex's assets, revenues and earnings in its financial statements, and failed to disclose numerous suspect and in many cases sham barter deals between Itex and various related party transactions; (2) Pfaltzgraff knowingly circumvented and failed to implement internal accounting controls; and (3) Pfaltzgraff made and caused others to make materially false and misleading statements and omissions to Itex's auditors in connection with audits for fiscal years ended July 31, 1994, 1995, 1996 and 1997. 
+
+   D. On March 24, 2000, a final judgment was entered by the United States District Court for the District of Oregon permanently enjoining Pfaltzgraff from violating Section 17(a) of the Securities Act of 1933 ("Securities Act") and Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5, 13b2-1 and 13b2-2 thereunder. Pfaltzgraff consented to entry of the judgment without admitting or denying the allegations of the Commission's complaint. 
+
+   III. 
+
+   Based on the foregoing, the Commission deems it appropriate and in the public interest to accept Pfaltzgraff's Offer of Settlement and accordingly, 
+
+   IT IS HEREBY ORDERED, effective immediately, that Pfaltzgraff is denied the privilege of appearing or practicing before the Commission as an accountant. 
+
+   IT IS FURTHER ORDERED, that five years from the date of this Order, Pfaltzgraff may apply to the Commission by submitting an application to the Office of the Chief Accountant which requests that she be permitted to resume appearing or practicing before the Commission as a preparer or reviewer, or a person responsible for the preparation or review, of financial statements of a public company to be filed with the Commission upon submission of an application satisfactory to the Commission in which Pfaltzgraff undertakes that, in her practice before the Commission, her work will be reviewed by the independent audit committee of the company for which she works or in some other manner acceptable to the Commission. 
+
+   IT IS FURTHER ORDERED, that the Commission's review of any request or application by Pfaltzgraff to resume appearing or practicing before the Commission may include consideration of, in addition to the matters referenced above, any other matters relating to her character, integrity, professional conduct or qualifications to appear or practice before the Commission. 
+
+   By the Commission. 
+
+               Jonathan G. Katz
+               Secretary 
+ 
+   Footnotes 
+
+
+   1  Rule 102(e) provides, in pertinent part:
+  
+(3)(i)  The Commission, with due regard to the public interest and without preliminary hearing, may, by order . . . suspend from appearing or practicing before it any . . . accountant . . . who . . . has been by name:
+
+		(A)  Permanently enjoined by any court of competent jurisdiction by reason of his misconduct in an action brought by the Commission, from violation or aiding and abetting the violation of any provision of the Federal securities laws (15 U.S.C. §§ 77a--80b-20) or of the rules and regulations thereunder . . . . 
+
+(iv)  . . . A person who has consented to the entry of a permanent injunction . . . without admitting the facts set forth in the complaint shall be presumed for all purposes under this paragraph (3) to have been enjoined by reason of the misconduct alleged in the complaint.
+ 
+
+   1    The findings herein are made pursuant to the Respondent's Offer and are not binding on any other person or entity in this or any other proceeding. 
+  
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1256.txt b/raw/aaer/2000/AAER-1256.txt
new file mode 100644
index 0000000000000000000000000000000000000000..9697aa80f858d4d54ccd10d99481ae82086bc413
--- /dev/null
+++ b/raw/aaer/2000/AAER-1256.txt
@@ -0,0 +1,1360 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | ITEX Corporation, Terry L. Neal, Michael T. Baer, Graham H. Norris, Cynthia Pfaltzgraff and Joseph M. Morris 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483191","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              ITEX Corporation, Terry L. Neal, Michael T. Baer, Graham H. Norris, Cynthia Pfaltzgraff and Joseph M. Morris
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        ITEX Corporation, Terry L. Neal, Michael T. Baer, Graham H. Norris, Cynthia Pfaltzgraff and Joseph M. Morris
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+  
+LITIGATION RELEASE NO. 16536 \ May 3, 2000
+    ACCOUNTING AND AUDITING  
+ENFORCEMENT RELEASE NO. 1256 / May 3, 2000	
+  SEC V. ITEX CORPORATION, TERRY L. NEAL, MICHAEL T. BAER, GRAHAM H. NORRIS, CYNTHIA PFALTZGRAFF AND JOSEPH M. MORRIS, CV 99-1361 BR (D. Ore.) (September 27, 1999)
+  SEC SETTLES FRAUD CASE AGAINST FORMER ITEX CORPORATION PRESIDENT AND CONTROLLER
+  The Securities and Exchange Commission today announced the settlement of securities fraud charges against Graham H. Norris and Cynthia Pfaltzgraff, former officers of Itex Corporation, a Portland, Oregon company engaged in the barter trade business.  In its complaint, filed September 27, 1999, the Commission alleged, among other things, that Norris, as president of Itex Corporation, from September 1996 through October 1998, and Pfaltzgraff as controller of Itex from at least December 1993 through February 1998, both knowingly or recklessly participated in the material overstatement of Itex's assets, revenues and earnings in its financial statements, and failed to disclose numerous suspect and in many cases sham barter deals between Itex and various related parties.  The complaint also alleged that Norris and Pfaltzgraff knowingly circumvented and failed to implement internal accounting controls and that they made and caused others to make materially false and misleading statements and omissions to Itex's auditors.  The complaint alleged that Pfaltzgraff's and Norris's conduct was part of a larger scheme in which defendant Terry Neal, Itex's founder and control person, orchestrated and implemented a broad-ranging fraudulent scheme to make materially false and misleading disclosures about the company's business and to conceal numerous suspect and in many cases sham barter deals between Itex and various mysterious offshore entities related to and/or controlled by Neal.  
+  Norris and Pfaltzgraff consented, without admitting or denying the Commission's allegations, to the entry of a final judgment permanently enjoining each of them from violating the antifraud, books and records, internal controls, and false statements to auditors provisions (Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 and Rules 10b-5, 13b2-1 and 13b2-2 thereunder).  Norris consented to pay a $50,000 civil penalty.  No penalty was imposed on Pfaltzgraff based on her inability to pay.
+  Based on the injunction, the Commission entered an administrative order barring Pfaltzgraff from practicing before the Commission as an accountant, with a right to reapply after five years.  In the Matter of Cynthia Pfaltzgraff, Admin. Proc. No. 3-10198 (May 3, 2000).
+  The Commission previously settled securities fraud actions against Itex (Lit. Rel. No. 16437), and Joseph P. Morris (Lit. Rel. No. 16430).  Litigation continues against Terry Neal and Michael Baer.
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1257.txt b/raw/aaer/2000/AAER-1257.txt
new file mode 100644
index 0000000000000000000000000000000000000000..7781abd3375689baba9fec3036c2fb2b48f47e78
--- /dev/null
+++ b/raw/aaer/2000/AAER-1257.txt
@@ -0,0 +1,1566 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | America Online, Inc. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359661","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              America Online, Inc.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        America Online, Inc.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              UNITED STATES OF AMERICA
+ Before the
+ SECURITIES AND EXCHANGE COMMISSION
+
+  Securities Exchange Act of 1934
+ Release No.  42781 / May 15,2000
+
+  Accounting and Auditing Enforcement
+ Release No.  1257 / May 15, 2000
+
+  Administrative Proceeding 
+ File No.  3-10203
+
+  
+
+
+     ______________________________           )      In the Matter of       )      ORDER INSTITUTING PUBLIC        )      ADMINISTRATIVE PROCEEDINGS      AMERICA ONLINE, INC.,      )   PURSUANT TO SECTION 21C OF THE        )      SECURITIES EXCHANGE ACT OF 1934,       Respondent.        )      MAKING FINDINGS AND IMPOSING        )      A CEASE-AND-DESIST ORDER      ______________________________     )     I.
+
+    The Commission deems it appropriate to institute proceedings pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") to determine whether America Online, Inc. ("AOL") violated Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder.
+
+    AOL has submitted an Offer of Settlement, which the Commission has determined to accept.  Solely for the purpose of this proceeding, and any other proceeding brought by or on behalf of the Commission, or to which the Commission is a party, and prior to a hearing pursuant to the Commission's Rules of Practice, 17 C.F.R. 201.100,  et seq ., and without admitting or denying the findings set forth herein, except as to the Commission's jurisdiction over it and the subject matter of this proceeding, which AOL admits, AOL consents to the entry of this Order making findings and directing AOL to cease and desist (the "Order").
+
+  II.
+
+    Based on the Order and the Offer of Settlement of AOL, the Commission finds:
+
+  A.  Respondent  1   
+
+   America Online, Inc. , is a Delaware corporation with its principal place of business in Dulles, Virginia.  AOL provides Internet access to millions of subscribers in the U.S. and internationally.  During fiscal year 1996, AOL had nearly $1.1 billion in revenues and at June 30, 1996, had approximately 6.2 million subscribers worldwide.  The common stock of AOL is registered with the Commission pursuant to Section 12(b) of the Exchange Act and is listed on the New York Stock Exchange.
+
+  B.  Background 
+
+    This case involves AOL's capitalization of certain advertising costs that should have been expensed as they were incurred.  Although AOL was generating positive net revenues (gross revenues from subscribers minus direct costs of earning such revenues), AOL was operating in a new, evolving, and unstable business sector, and thus could not provide the "persuasive" historical evidence needed to reliably estimate the future net revenues it would obtain from its advertising expenditures.  As a consequence, AOL could not satisfy the requirements of Accounting Standards Executive Committee  Statement of Position  93-7 ("SOP 93-7"), which contains a limited exception to the general rule, under Generally Accepted Accounting Principles ("GAAP"), that all advertising costs be expensed as incurred.  
+
+    During its fiscal years ended June 30, 1995 and June 30, 1996, AOL rapidly expanded its customer base as an Internet service provider through extensive advertising efforts.  These efforts involved, among other things, distributing millions of computer disks containing AOL startup software to potential AOL subscribers, as well as bundling AOL software with computer equipment.  Largely as a result of its extensive advertising expenditures, this period was characterized by negative cash flows from operations.
+
+  For fiscal years 1995 and 1996, AOL capitalized most of the costs of acquiring new subscribers as "deferred membership acquisition costs" ("DMAC") -- including the costs associated with sending disks to potential customers and the fees paid to computer equipment manufacturers who bundled AOL software onto their equipment -- and reported those costs as an asset on its balance sheet, instead of expensing those costs as incurred.  Substantially all customers were derived from the above direct marketing program.  For fiscal years 1993, 1994 and 1995, AOL (generally) amortized DMAC on a straight-line basis over a 12 month period.  Beginning July 1, 1995, the company increased that amortization period to 24 months.  2    At July 1, 1994, the beginning of AOL's 1995 fiscal year, June 30, 1995, and June 30, 1996, the DMAC on AOL's balance sheets were $26 million, $77 million and $314 million, respectively, or 17%, 19% and 33% of total assets, and 26%, 35% and 61% of shareholders' equity.  Had these costs been properly expensed as incurred, AOL's 1995 reported pretax loss would have been increased from $21 million to $98 million (including the write-off of DMAC that existed as of the end of fiscal year 1994), and AOL's 1996 reported pretax income of $62 million would have been decreased to a pretax loss of $175 million.  On a quarterly basis, the effect of capitalizing DMAC was that AOL reported profits for six of eight quarters in fiscal years 1995 and 1996, rather than losses that it would have reported had the costs been expensed as incurred. 
+
+    On October 29, 1996, AOL announced through a press release that it would write off all capitalized costs of membership acquisition carried as an asset at September 30, 1996, and would expense as incurred all such costs from October 1, 1996 forward.  AOL reflected a one-time charge in the first quarter of fiscal year 1997 in the amount of $385 million to write off the DMAC asset.
+
+  C.   Requirements of SOP 93-7 - "Reporting on Advertising Costs "
+
+    On December 29, 1993, the Accounting Standards Executive Committee of the American Institute of Certified Public Accountants issued  Statement of Position 93-7 , "Reporting on Advertising Costs" ("SOP 93-7"),  which was effective for financial statements for years beginning after June 15, 1994.  3    Thus its first applicability to AOL was for AOL's 1995 fiscal year, which began July 1, 1994.  SOP 93-7 is the authoritative accounting literature governing accounting for costs to gain subscribers.  As described more fully below, SOP 93-7 requires the capitalization and amortization of direct response advertising costs only when persuasive historical evidence exists that allows the entity to reliably predict future net revenues that will be obtained as a result of the advertising.
+
+  SOP 93-7, ¶ 26, requires that advertising costs generally be expensed either as they are incurred or the first time advertising takes place.  SOP 93-7, however, contains a narrow exception for certain direct-response advertising costs, which are costs of advertising whose primary purpose is to elicit sales to customers who can be shown to have responded specifically to the advertising.  AOL's direct-response advertising costs included the costs of sending disks with AOL software to potential customers and the cost of bundling AOL software with original computer equipment. To capitalize direct response advertising costs, however, SOP 93-7 requires that such costs result in probable future economic benefits.  Such benefits are defined to be "probable future revenues arising from that advertising in excess of future costs to be incurred in realizing those revenues."  SOP 93-7, ¶ 36.  SOP 93-7 discusses the conditions that must be met in order to conclude that direct-response advertising results in probable future benefits in ¶ 37:
+
+    Demonstrating that direct-response advertising will result in future benefits requires  persuasive evidence  that its effects will be  similar  to the effects of responses to past direct-response advertising activities of the entity that resulted in future benefits.   Such evidence should include verifiable historical patterns of results for the entity .  Attributes to consider in determining whether the responses will be similar include (a) the demographics of the audience, (b) the method of advertising, (c) the product, and (d) economic conditions [emphasis added].
+
+  Paragraph 48 of SOP 93-7 specifies that the costs capitalized as an asset be subject to a recoverability ("realizability") test:
+
+    The realizability of the amounts of direct-response advertising reported as assets should be evaluated at each balance-sheet date by comparing the carrying amounts of such assets on a cost-pool-by-cost-pool basis to the probable remaining future net revenues expected to result directly from such advertising.  
+
+  SOP 93-7, ¶ 70 requires that the estimate of future net revenue be based on "reliable information." "Those conditions," it provides, "are narrow because it is generally difficult to determine the probable future benefits of advertising with the degree of reliability sufficient to report the results of the advertising as assets."
+
+    Thus, to capitalize DMAC under the provisions of SOP 93-7, AOL needed to demonstrate, at each balance sheet date, that these costs were recoverable from future net revenues,  i.e. , future gross revenues from subscribers minus future costs to be incurred to earn those gross revenues.  This constraint required AOL to be able to reliably predict the following: (1) the future retention or attrition rates of subscribers obtained through its capitalized advertising costs; (2) the revenues those subscribers would generate to AOL; and (3) the costs AOL would incur to obtain those revenues.
+
+    AOL attempted to meet these requirements by estimating future membership retention based on a model that, while adjusted on a quarterly basis, assumed stability in customer retention rates over an extended period, as well as the maintenance of the company's gross profit margin percentage, which was based on the company's existing fee structure and costs of operation.  
+
+  Moreover, AOL did not assess recoverability of DMAC on a cost-pool-by-cost-pool basis, as required by ¶ 48 of SOP 93-7, by comparing acquisition costs capitalized each quarter to the actual net revenues generated by customers who started as a result of a particular marketing campaign.  Instead, the Company aggregated customer acquisition costs capitalized during each quarter (or month) and compared such costs to average revenue from all customers.  In addition, even if AOL had a basis to capitalize DMAC,  ¶ 47 of SOP 93-7 requires that "the amortization should be the amount computed using the ratio that current period revenues for the direct-response advertising cost pool bear to the total of current and estimated future period revenues for that direct-response-advertising cost pool." 
+
+  D.  AOL Did Not Have an Adequate Basis to Capitalize and Amortize the Costs of Subscriber Acquisition 
+
+  During fiscal years 1995 and 1996, AOL did not meet the requirements of SOP 93-7 for capitalizing and amortizing DMAC.  AOL was in a volatile, developing market that was subject to unpredictable, potentially material adverse developments and thus, could not reliably forecast future subscriber retention, revenues, or cost of services.  Indeed, AOL disclosed these factors in its filings with the SEC.  For example, in its annual report on Form 10-K for the fiscal year ended June 30, 1995 ("1995 Form 10-K"), AOL stated that it was engaged in the development of a "new medium."  A company developing a new medium, the basic nature of whose business may change rapidly, cannot reliably predict future customer retention, revenues and costs, as required by SOP 93-7.  
+
+  During the relevant period, moreover, AOL's membership, having expanded exponentially, was significantly different-the majority of the members had been with the service for less than one year.  This extraordinary growth made AOL's historical evidence about customer behavior potentially less predictive of future behavior of then-existing customers.  In a registration statement on Form S-3, filed March 17, 1995, AOL acknowledged that, as the company grew more rapidly, it risked downward pressures on operating margins: 
+
+    AOL may wish to adopt additional strategies designed to continue growth in its subscriber base, such as new promotional offers and implementation of new pricing programs to accomplish this objective....  Consequently, there can be no assurance that AOL's operating margins have stabilized or that AOL's operating margins will not be affected in the future by such strategies.
+
+  In addition, sophisticated, well-capitalized competitors caused uncertainty in AOL's ability to predict subscriber retention, future revenues and the costs of obtaining those revenues.  In its 1995 Form 10-K, in the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations," AOL disclosed:
+
+    The online services market is  highly competitive .  The Company believes that existing competitors ...  are likely to enhance their service offerings.  In addition, new competitors have announced plans to enter the online services market, resulting in greater competition for the company.   The competitive environment could require new pricing programs  and increased spending on marketing, content procurement and product development; limit the Company's opportunities to enter into and/or renew agreements with content providers and distribution partners; limit the Company's ability to grow its subscriber base; and result  in increased attrition  in the Company's subscriber base.   Any of the foregoing events could result in an increase in costs as a percentage of revenues, and may have a material adverse effect on the company's financial condition and operating results  [emphasis supplied].
+
+    In a registration statement on Form S-3, filed September 18, 1995, AOL explicitly disclosed the possibility that other revenue streams might replace revenue from subscribers' fees.  Under the caption "Market Evolution," AOL stated,  inter alia :
+
+    ... a new business model is evolving for interactive media providers that will be characterized less by subscriber fees and more by transaction-based and advertising revenues.  4    Such fundamental changes in AOL's business model meant that AOL could not use   its historical subscriber retention rates and related revenue experience as a reliable basis for projecting future revenues, a critical element in analyzing the recoverability of DMAC.  And the potential of such a change meant that AOL could not provide "persuasive evidence" that potential customers would respond in the future similarly to those in the past.
+
+  During fiscal year 1996, while the amount of DMAC reported on AOL's balance sheet grew from $77 million to $314 million,  5   the uncertainties in the Internet marketplace became more pronounced.  First, AOL's costs of subscriber acquisition increased substantially, as the response rate to its disk mailings decreased.  Moreover, AOL's competition continued to increase, including competition from service providers offering unlimited Internet access for a flat monthly fee.  To increasing numbers of Internet users, this unlimited access pricing was an attractive alternative to AOL's pricing plan, which charged customers on an hourly rate, and AOL's senior management was actively considering adoption of some variant of unlimited access pricing.  In part as a result of this competition, AOL experienced declining rates of customer retention throughout FY 1996.  AOL introduced a modification to its pricing plan, offering a lower hourly rate for heavy users, on July 1, 1996, in hopes of improving customer retention.  But AOL disclosed in its 1996 Form 10-K: "The Company  cannot predict  the overall future rate of retention." [emphasis supplied]
+
+  On October 29, 1996, AOL announced that as of September 30, 1996, it would write off the entire amount of DMAC. AOL stated that the write-off was necessary to reflect changes in its evolving business model, including reduced reliance on subscriber's fees as the company developed other revenue sources.  AOL had responded to competitive pressure by adopting an unlimited-use pricing plan and, by writing off DMAC, acknowledged that it could not rely on its revenue history under a different pricing model as support for the recoverability of DMAC.  But the increasing competition and rapid changes in AOL's marketing merely confirmed that AOL, given its volatile business environment, could not comply with the requirements of SOP 93-7.
+
+   E. AOL's Capitalizing of DMAC Made its Financial Statements Inaccurate  
+
+    Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder require issuers of registered securities to file with the Commission factually accurate annual and quarterly reports.   SEC v. Savoy Indus. , 587 F.2d 1149, 1165 (D.C. Cir. 1978).  Financial statements incorporated in Commission filings must comply with Regulation S-X, which in turn requires conformity with generally accepted accounting principles ("GAAP").  The filing of a periodic report containing inaccurate information constitutes a violation of these regulations.   See   Savoy Indus. , 587 F.2d at 1165.
+
+  The general rule as set forth in ¶ 26 of SOP 93-7, is that "the costs of advertising should be expensed either as incurred or the first time the advertising takes place."  To meet the requirements of the narrow exception to this general rule, as set forth in SOP 93-7, ¶¶ 36 and 37, an entity must operate in a sufficiently stable business environment that the historical evidence upon which it bases its recoverability analysis is relevant and reliable.
+
+  AOL did not meet the essential requirements of SOP 93-7 because the unstable business environment precluded reliable forecasts of future net revenues. AOL was not operating in a stable environment, and AOL's business was characterized, during the relevant period, by the following factors:
+      AOL was operating in a nascent business sector characterized by rapid technological change;
+
+         AOL's business model was evolving;
+
+         extraordinarily rapid growth in AOL's customer base caused significant changes to its customer demographics;
+
+         AOL's customer retention rates were unpredictable;
+
+         AOL's product pricing was subject to potential change;
+
+         AOL could not reliably predict future costs of obtaining revenues;
+
+         AOL's competition was increasing; and
+
+         AOL was experiencing negative cash flow.
+   Due to these factors, AOL did not have sufficient reliable evidence that its DMAC asset was recoverable, and AOL could not, therefore, satisfy the capitalization and amortization requirements of SOP 93-7.  As a consequence, AOL's financial statements as filed with the Commission in quarterly reports on Form 10-Q and annual reports on Form 10-K, from the quarter that began July 1, 1994 through the quarter beginning July 1, 1996  6   were rendered inaccurate by AOL's accounting treatment for DMAC.  Therefore, AOL violated Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder.
+
+    Section 13(b)(2)(A) of the Exchange Act requires issuers that are registered with the Commission to make and keep books, records, and accounts which accurately reflect the transactions and disposition of their assets.  AOL violated Section 13(b)(2)(A) of the Exchange Act during its fiscal years 1995 and 1996, and the quarter beginning July 1, 1996, by recording as an asset advertising costs that could not be capitalized in accordance with the requirements of SOP 93-7.
+
+  III.
+
+  ORDER
+
+    Based on the foregoing, IT IS HEREBY ORDERED, pursuant to Section 21C of the Exchange Act, that America Online, Inc., cease and desist from causing any violations, and any future violations of Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder.
+
+    By the Commission.
+
+              __________________
+
+             Jonathan G.  Katz
+             Secretary
+  
+  Additional Materials Available on This Topic 
+
+
+  
+  Litigation Release No. 16552 
+ 
+
+
+
+
+
+ 
+   Footnotes 
+ 
+
+
+    1     On the date of this Order, the Commission filed a complaint in U.S. District Court for the District of  Columbia and a consent of America Online, Inc., to obtain civil penalties from AOL to resolve claims arising from the matters also described in this Order.
+
+    2     SOP 93-7, ¶ 74, states that because "the reliability of accounting estimates decreases as the length of the period for which such estimates are made increases..., the period over which the benefits[sic] [costs] of direct-response advertising are amortized often is no longer than the greater of one year or one operating cycle."
+
+    3     Prior to the effective date of SOP 93-7, there was no authoritative accounting literature that applied specifically to the deferral of the costs of subscriber acquisition.   Prior to the effective date, the Company had a policy of deferring its direct response advertising costs.
+
+    4     AOL's 1996 Form 10-K contained disclosures about the uncertainty of future business operations and competition similar to those in the 1995 Form 10-K and the September 1995 Form S-3.  
+
+    5     This increase, in part, reflected the extension of the DMAC amortization period to 24 months. 
+
+    6    AOL's 10-Q for the quarter beginning July 1, 1996 included a charge of $385 million for the write-off of DMAC.  Had AOL not previously capitalized DMAC, the write-off would not have appeared in the quarter beginning July 1, 1996.  Instead, all marketing costs would have been charged to expense as incurred.
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1258.txt b/raw/aaer/2000/AAER-1258.txt
new file mode 100644
index 0000000000000000000000000000000000000000..9a70a93b93a047be3fde4ad9787fdf6eda64b6ad
--- /dev/null
+++ b/raw/aaer/2000/AAER-1258.txt
@@ -0,0 +1,1390 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | America Online, Inc. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483276","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              America Online, Inc.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        America Online, Inc.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              UNITED STATES SECURITIES AND EXCHANGE COMMISSION
+ Washington, D.C. 
+
+ Litigation Release No. 16552 /  May 15, 2000 
+ 
+  Accounting and Auditing Enforcement 
+ Release No. 1258 / May 15, 2000 
+
+ U.S. Securities and Exchange Commission v. America Online, Inc., Civ No. 1:00CV01088 (PLF), (D.D.C. May 15, 2000) 
+
+  America Online, Inc. Pays $3.5 Million to Settle Financial Reporting Violations  
+
+     In connection with a cease-and-desist order issued by the Commission today in a settled administrative proceeding against America Online, Inc. ("AOL"), the Commission filed a related action for civil penalties against AOL in the United States District Court for the District of Columbia.  In settlement of that matter, AOL has consented to the entry of an order requiring that it pay a civil penalty of $3,500,000. 
+
+     In the cease-and-desist order, In the Matter of America Online, Inc. [ 34-42781 ] the Commission found that AOL violated the reporting and books and records provisions of the federal securities laws in connection with its accounting for certain advertising costs during fiscal years 1995 and 1996.  During that period, AOL capitalized most of the costs of acquiring new subscribers -- including the costs associated with sending computer disks to potential customers -- and reported those costs as an asset on its balance sheet, instead of expensing them as incurred.  AOL reported profits for six of eight quarters in fiscal years 1995 and 1996, rather than the losses it would have reported had the costs been expensed as incurred.  The advertising costs improperly capitalized by AOL reached approximately $385 million by September 30, 1996, when AOL wrote them off in their entirety. 
+
+     Accounting rules do not allow a company to capitalize "direct response advertising costs" unless it can demonstrate from its past experience that future net revenues from customers obtained through the advertising will exceed the amount of capitalized costs.   See  Accounting Standards Executive Committee  Statement of Position  93-7 ("SOP 93-7").  The Commission found that AOL could not meet this requirement because the volatile and unstable nature of the Internet marketplace precluded reliable predictions of future net revenues.  Specifically, the Commission found that AOL's business was characterized, during the relevant period, by the following factors: 
+
+     AOL was operating in a nascent business sector characterized by rapid technological change;
+
+         AOL's business model was evolving;
+
+         extraordinarily rapid growth in AOL's customer base caused significant changes to its customer demographics;
+
+         AOL's customer retention rates were unpredictable;
+
+         AOL's product pricing was subject to potential change;
+
+         AOL could not reliably predict future costs of obtaining revenues;
+
+         AOL's competition was increasing; and
+
+         AOL was experiencing negative cash flow.   Due to these factors, according to the Commission's findings, AOL did not have sufficient reliable evidence that its capitalized advertising costs were recoverable to satisfy the requirements of SOP 93-7.  AOL's financial statements as filed with the Commission in quarterly reports on Form 10-Q and annual reports on Form 10-K, from the quarter that began July 1, 1994 through the quarter beginning July 1, 1996 were consequently rendered inaccurate by AOL's accounting treatment for direct response advertising costs.  Therefore the Commission found that AOL violated Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder.  The Commission also found that AOL violated Section 13(b)(2)(A) of the Exchange Act during its fiscal years 1995 and 1996, and the quarter beginning July 1, 1996, by recording as an asset advertising costs that could not be capitalized in accordance with the requirements of SOP 93-7. 
+
+ Without admitting or denying the allegations in the Commission's complaint and its findings in the Order Instituting Proceedings, AOL has agreed to settle the Commission's claims by: (1) consenting to the entry of an administrative order requiring that it cease and desist from violations of Exchange Act Sections 13(a) and 13(b)(2)(A) and Exchange Act Rules 13a-1 and 13a-13, and (2) consenting to the entry of an order of the U.S. District Court requiring AOL to pay a civil penalty of $3,500,000.  
+
+ Additional Materials Available on This Topic 
+
+
+  
+   Administrative Proceeding 34-42781 
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1259.txt b/raw/aaer/2000/AAER-1259.txt
new file mode 100644
index 0000000000000000000000000000000000000000..e3f77749534febb2c9bc058ac63ae3f8306b3847
--- /dev/null
+++ b/raw/aaer/2000/AAER-1259.txt
@@ -0,0 +1,1487 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Intile Designs, Inc. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359646","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Intile Designs, Inc.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Intile Designs, Inc.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+
+ Release No.  42813   /   May 23, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+
+ Release No.   1259 
+
+ ADMINISTRATIVE PROCEEDING
+
+ File No.   3-10208
+
+   
+                                :
+                                :  
+                                :
+    In the Matter of            : ORDER INSTITUTING PUBLIC 
+                                : PROCEEDINGS PURSUANT TO
+    Intile Designs, Inc.        : SECTION 21C OF THE SECURITIES 
+                                : EXCHANGE ACT OF 1934, MAKING
+       Respondent.              : FINDINGS AND IMPOSING A CEASE -
+                                : AND-DESIST ORDER 
+                                :
+                                :
+                                :
+     
+
+    I.  
+
+    The Securities and Exchange Commission ("Commission") deems it appropriate that public cease-and-desist proceedings against Intile Designs, Inc. ("Intile" or "Respondent") be initiated pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act"). 
+
+   In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement ("Offer"), that the Commission has determined to accept.  Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings contained herein, except that Respondent admits the Commission's jurisdiction over it and over the subject matter of these proceedings, Respondent has consented to the entry of this Order Instituting Public Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings and Imposing a Cease-and-Desist Order ("Order") and to the entry of the cease-and-desist order set forth below. 
+
+    II.  
+
+   On the basis of this Order and the Offer submitted by Respondent, the Commission finds that:   
+
+ A. Intile Designs, Inc., a Delaware corporation with its principal office in Houston, Texas, made a registered offering and began filing periodic reports with the Commission pursuant to Section 15(d) of the Exchange Act in 1993. 
+
+   B. Intile was in the business of importing and distributing brick, stone and ceramic building products from 1993 through at least 1997.  The company conducted business in several Texas cities and one location in Georgia, and employed as many as 100 individuals. 
+
+   C. During much of this period, however, Intile experienced a serious cash flow problem.  Consequently, in order to decrease its expenses, Intile underreported the value of its inventory by 85 - 90% in tax reports or renditions filed with the property taxing authorities in the various locales in which it conducted business.  In reliance on these false inventory valuations, the local taxing authorities annually under-assessed the amount of property taxes Intile owed. 
+
+ D. Because of its failure to accrue the full amount of property taxes it owed, Intile failed to comply with Generally Accepted Accounting Principles in preparing its annual and quarterly reports.  Intile's "accrued expenses and other liabilities" in its balance sheet were understated by as much as 55% in its annual reports filed with the Commission on Form 10-K for fiscal years 1994 through 1996, and in its quarterly reports filed with the Commission on Form 10-Q during fiscal years 1994 through 1997.  Also, as a result of its underaccrual of taxes, Intile overstated its income before income taxes in its income statement by as much as 46% in its annual reports filed with the Commission on Form 10-K for fiscal years 1994 through 1996 and failed to make and keep books, records and accounts which, in reasonable detail, accurately and fairly reflected the transactions and dispositions of its assets.   
+
+   E. As a result of the foregoing, Intile committed and caused violations of Sections 10(b), 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1 and 13a-13 thereunder.   
+
+  III.  
+
+   In view of the foregoing the Commission deems it appropriate and in the public interest to impose the sanctions agreed to in the Offer. 
+
+   Accordingly, IT IS HEREBY ORDERED, pursuant to Section 21C of the Exchange Act, 
+
+that Respondent, Intile, cease and desist from committing or causing any violation and any future violation of Sections 10(b), 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1 and 13a-13 thereunder. 
+
+   
+
+   By the Commission
+
+                Jonathan G. Katz
+
+               Secretary 
+
+
+
+    
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1260.txt b/raw/aaer/2000/AAER-1260.txt
new file mode 100644
index 0000000000000000000000000000000000000000..9f74f33be4a44859b28d21071add5c8e138d2099
--- /dev/null
+++ b/raw/aaer/2000/AAER-1260.txt
@@ -0,0 +1,1496 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Paul Y. Okuda, Stephen A. Thorpe, and David J. Chester 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359631","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Paul Y. Okuda, Stephen A. Thorpe, and David J. Chester
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Paul Y. Okuda, Stephen A. Thorpe, and David J. Chester
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ Securities Act of 1933
+ Release No.  7859 / May 25, 2000 
+
+ Securities Exchange Act of 1934
+ Release No.  42827 / May 25, 2000 
+
+ Accounting and Auditing Enforcement
+ Release No.  1260 / May 25, 2000 
+
+ Administrative Proceeding
+ File No. 3-9345
+
+    In the Matter of  PAUL Y. OKUDA,
+ STEPHEN A. THORPE, and DAVID J. CHESTER, Respondents.  
+	 ORDER MAKING 
+FINDINGS, IMPOSING 
+REMEDIAL SANCTIONS 
+AND CEASE-AND-DESIST 
+ORDER AS TO STEPHEN A. THORPE 
+   I. 
+
+     Stephen A. Thorpe has submitted an offer of settlement ("Offer") for the purpose of disposing of the issues raised by this proceeding.  Solely for the purposes of these proceedings and any other proceedings brought by or on behalf of the Commission or to which the Commission is a party, and prior to hearing and without admitting or denying the findings set forth herein, except as to the Commission's finding of jurisdiction over him and the subject matter of this proceeding, Thorpe consents to the entry of this Order Making Findings, Imposing Remedial Sanctions and Cease-and-Desist Order as to Stephen A. Thorpe ("Order").  The Commission has determined that it is appropriate and in the public interest to accept the Offer, and accordingly is issuing this Order.  1   
+
+ II. 
+
+     Based on the foregoing, the Commission finds that:  2   
+
+     A.  Respondent  
+
+     Stephen A. Thorpe, age 49, is employed in San Ramon, California.  Thorpe conducted certain transactions relating to a private placement of shares of Ferrofluidics Corporation ("Ferrofluidics").  Ferrofluidics, a publicly traded Massachusetts corporation, is headquartered in Nashua, New Hampshire. 
+
+     B.  The April 1992 Private Placement  
+
+     In early 1992, Ronald Moskowitz, Ferrofluidics' former Chief Executive Officer and Chairman of the Board of Directors, made plans for a private placement of 720,000 newly issued, unregistered Ferrofluidics shares.  Moskowitz was unable to find legitimate buyers for most of those shares.  Instead, Moskowitz and Jan R. Kirk, Ferrofluidics' former Chief Financial Officer, parked 120,000 shares with a company owned in part by Thorpe, and 500,000 shares with three other individuals (the "Purchasers") until the shares could be registered and sold to bona fide investors.  Kirk told Thorpe, in substance, that there was no risk of loss because the shares would be resold before his payment obligations were due, and that Ferrofluidics would compensate him.  Thorpe received $18,000 from Ferrofluidics for his participation.  From this amount, Thorpe paid $8,851 to others for Kirk's benefit. 
+
+     The Purchasers, including Thorpe, each signed a subscription agreement, a promissory note, and a pledge agreement.  However, none of the Purchasers, including Thorpe, paid for the subscribed Ferrofluidics stock, nor did they have the financial ability to pay for the shares. 
+
+     Ferrofluidics publicly announced, in a press release dated April 23, 1992, that it had "$12,000,000 of added capital" as a result of the private placement.  The condensed balance sheet issued as part of the press release showed an $11.2 million increase in working capital and total assets.  These statements were false.  In fact, the transaction added only $1.6 million in equity, from a single legitimate purchaser. 
+
+     The Purchasers, including Thorpe, never made any payments on their notes, nor did the company expect them to.  Ferrofluidics nonetheless booked interest on the notes as a receivable and thereby increased Ferrofluidics' net income by approximately $580,000, or 17%, during fiscal 1992 and $212,000, or 22%, during the first quarter of fiscal 1993. 
+
+     During the fiscal years ended June 30, 1991 and 1992, Ferrofluidics recorded $735,000 of expenses in a suspense account, treating them as having been incurred in connection with a proposed private placement of shares by Ferrofluidics.  In fact, most of these expenses were incurred in connection with Moskowitz's efforts to sell stock beneficially owned by him (through his family trusts), Moskowitz's payments to investor relations consultants, and Moskowitz's personal travel and expenses.  When the sham private placement was completed in April 1992, Ferrofluidics improperly charged these costs against capital.  Because the costs were not incurred in connection with a legitimate private placement of shares by Ferrofluidics, they should have been expensed.  As a result of this improper accounting treatment, Ferrofluidics' net income was materially overstated during the relevant period. 
+
+ III. 
+
+   OPINION   
+
+      Antifraud Violations -- Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5    
+
+     Section 17(a) of the Securities Act, Section 10 (b) of the Exchange Act, and Rule 10b-5 thereunder prohibit fraud in connection with the offer, purchase, or sale of securities.  A person violates these provisions by making false and misleading statements if the individual speaks with knowledge and awareness that the statements were to be communicated to, and reasonably could be expected to be relied upon by, purchasers and sellers of a security.  Through the scheme described above, the false and misleading press releases relating to it, and the misrepresentations in its financial statements, Ferrofluidics violated these provisions.  By his conduct described above, Thorpe caused Ferrofluidics' violations. 
+
+ IV. 
+
+     Based on the above, the Commission finds that Thorpe caused violations of Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder.   
+
+ V. 
+
+   ORDER  
+
+     Accordingly, IT IS HEREBY ORDERED that Thorpe, 
+
+     1. cease and desist from committing or causing any violations of, and committing or causing any future violations of, Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act, and Rule 10b-5 thereunder; 
+
+ 2. pay disgorgement of $9,148.67 plus pre-judgment and post-judgment interest as follows:  $3,000 within thirty (30) days of the entry of the Order; and a total of five (5) quarterly payments of $2,938.51 each to be made on August 1, 2000; November 1, 2000; February 1, 2001; May 1, 2001; and August 1, 2001.  Payment is to be made by U.S. Postal money order, certified check, bank cashier's check, or bank money order, made payable to the Securities and Exchange Commission and shall be hand-delivered or mailed to the Comptroller, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Stop 0-3, Alexandria, VA 22312, under cover of a letter that identifies the respondent and the name and file number of this proceeding.  A copy of the cover letter and of the form of payment shall be simultaneously transmitted to Laura B. Josephs, Esq., Securities and Exchange Commission, Division of Enforcement, 450 Fifth Street NW, Washington, DC  20549-0703. 
+
+     By the Commission. 
+ Jonathan G. Katz
+  Secretary 
+ 
+   Footnotes 
+
+     1   
+	 This matter was instituted on July 1, 1997 pursuant to Section 8A of the Securities Act of 1933 and Sections 15(b)(6) and 21C of the Securities Exchange Act of 1934. 
+     2   
+	 The findings herein are made pursuant to Thorpe's Offer of Settlement and are not binding on any other person or entity in this or any other proceeding. 
+   
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1261.txt b/raw/aaer/2000/AAER-1261.txt
new file mode 100644
index 0000000000000000000000000000000000000000..e978d1dfa91fd8208942baa43b32c4cf5717af8d
--- /dev/null
+++ b/raw/aaer/2000/AAER-1261.txt
@@ -0,0 +1,1439 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | R. Gordon Jones and Mark F. Jensen 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359636","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              R. Gordon Jones and Mark F. Jensen
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        R. Gordon Jones and Mark F. Jensen
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  42828/ May 25, 2000     
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No. 1261/ May 25, 2000
+
+  ADMINISTRATIVE PROCEEDING
+ File No. 3-10210/ May 25, 2000
+
+   Proceedings Instituted Against R. Gordon Jones and Mark F. Jensen 
+
+  The Commission has instituted public administrative proceedings pursuant to Rule 102(e) of the Commission's Rules of Practice against R. Gordon Jones and Mark F. Jensen, two CPAs in Salt Lake City, Utah.  Jones and Jensen are charged with having engaged in improper professional conduct by recklessly violating professional accounting and auditing standards in their audit of the 1995 financial statements of a now-defunct Utah corporation, Dynamic American Corporation. Jones, the engagement partner, was primarily responsible for the audit field work. Jensen performed the concurring partner review on the audit.
+
+  The Commission previously instituted public administrative proceedings against Dynamic and six individuals based on a 1996 "pump and dump" scheme by which about $4 million in Dynamic stock was sold to the public.   See ,  In the Matter of Jethro J. Barlow, CPA, et al ., Exchange Act Rel. No. 41689 (August 2, 1999;  In the Matter of Dynamic American Corporation , Exchange Act Rel. No. 41688 (August 2, 1999).
+
+  In the order, the Division of Enforcement alleges that Dynamic's financial statements, included in the company's amended annual report on Form 10-K/A filed in November 1996, were not prepared in conformity with GAAP.  Specifically, the staff contends that Dynamic's balance sheet improperly listed as an asset certain Bolivian mining properties that were materially overvalued at $36,600,000, or 91% of Dynamic's total consolidated assets. Furthermore, in performing their audit of Dynamic's 1995 financial statements, Jones and Jensen also did not act in accordance with GAAS in that they: failed to adequately plan the audit; failed to obtain sufficient competent evidential matter; failed to maintain an attitude of professional skepticism; failed to exercise due professional care in the performance of the audit; failed to issue a proper audit report with respect to the work performed by other auditors; and by using a lower-of-cost-or-market analysis, did not test the balance sheet presentation of certain "ore concentrates" valued at approximately $4.3 million.
+
+  A hearing will be held before an administrative law judge to determine whether the staff's allegations are true, and if so, whether Jones or Jensen should be censured or temporarily or permanently disqualified from or denied the privilege of appearing or practicing before the Commission.
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1262.txt b/raw/aaer/2000/AAER-1262.txt
new file mode 100644
index 0000000000000000000000000000000000000000..e71906901f8b6d26259bf4974479c8562eb4a9f4
--- /dev/null
+++ b/raw/aaer/2000/AAER-1262.txt
@@ -0,0 +1,1367 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | C. William Cox 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483326","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              C. William Cox
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        C. William Cox
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+
+   Washington, D.C. 
+
+ LITIGATION RELEASE NO.   16562 /  May 23, 2000 
+
+   SECURITIES AND EXCHANGE COMMISSION v. C. WILLIAM COX
+
+ U.S.D.C /Southern District of Texas/Houston Division Civil Action No. H-001705 
+
+ On May 23, 2000,the Commission filed a civil fraud suit against C. William Cox (Cox), the former president and chief executive officer of Intile Designs, Inc., for causing Intile, a publicly traded company, to misstate its accrued expenses and liabilities by as much as 55% and its net income by as much as 46% over a five year period.  Cox, age 61, is a resident of Houston, Texas.  Intile was an importer and distributor of brick, stone and ceramic building products, and its common stock was quoted on the OTC Bulletin Board under the symbol "IDSN" during the relevant period. 
+
+ The complaint alleges that Cox single-handedly carried out a scheme to underpay Intile's local property taxes, by underreporting the value of its inventory by 85% - 90% in local tax filings. As a result, Intile underpaid its inventory property taxes by approximately $1,069,000 over the five year period.  The complaint further alleges that this underpayment of property taxes caused Intile to understate its accrued expenses and liabilities by as much as 55%, and to overstate its net income by as much as 46%, in periodic reports filed with the Commission during fiscal years 1994 through 1997. Cox signed, and was the company officer responsible for, these misleading periodic reports.  Also, as a result of its underpayment of taxes, Intile failed to make and keep books, records and accounts which    accurately and fairly reflected the transactions and disposition of its assets.  
+
+ Simultaneously with the filing of its action, the Commission accepted Cox's offer of settlement in which he agreed, without admitting or denying the allegations in the Commission's complaint, to an injunction prohibiting him from future violations of the antifraud, reporting and books and records provisions of the federal securities laws, and from acting as an officer or director of any public company.  Specifically, Cox is permanently enjoined from (i) future violations of Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 (Exchange Act), and Rules 10b-5, 13b2-1 and 13b2-2 thereunder; (ii) aiding and abetting future violations of Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder, and (iii) acting as an officer or director of any issuer required to file reports pursuant to Sections 12(b), 12(g) or 15(d) of the Exchange Act.  A financial civil penalty was not assessed, based on Cox's demonstrated financial inability to pay. 
+
+ On May 23, 2000, the Commission also instituted cease-and-desist proceedings against Intile and simultaneously accepted Intile's offer of settlement in which it agreed, without admitting or denying the findings in the Commission's order, to cease and desist from future violations of the federal securities laws.   
+ 
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1263.txt b/raw/aaer/2000/AAER-1263.txt
new file mode 100644
index 0000000000000000000000000000000000000000..6b1067190471fa29a39b50123507f7710363aecd
--- /dev/null
+++ b/raw/aaer/2000/AAER-1263.txt
@@ -0,0 +1,1418 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Samuel L. White 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359596","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Samuel L. White
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Samuel L. White
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES EXCHANGE ACT OF 1934  Release No. 42879 / June 1, 2000  ACCOUNTING AND AUDITING ENFORCEMENT  Release No. 1263 / June 1, 2000  ADMINISTRATIVE PROCEEDING  File No. 3-10215          In the Matter of   SAMUEL L. WHITE, CPA        Respondent.         : : : : : : :          ORDER INSTITUTING  PROCEEDINGS, MAKING FINDINGS AND ORDER PURSUANT TO RULE 102(e) OF THE COMMISSION'S  RULES OF PRACTICE     I.  The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest to institute an administrative proceeding against Respondent Samuel L. White pursuant to paragraphs (2) and (3) of Rule 102(e) of the Commission's Rules of Practice [17 C.F.R. §201.102(e)].  1    In anticipation of the institution of this proceeding, White has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept. Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the Commission's findings contained herein, except that he admits the jurisdiction of the Commission over him and over the matters set forth in this Order and admits the Commission's finding that a Final Judgment of Permanent Injunction and Other Equitable Relief has been entered against him as set forth in Section III, White consents to the entry of findings and the imposition of the remedial sanctions set forth below.  II.  The Commission finds the following:  A. At all relevant times, White, a certified public accountant, was a tax partner at Deloitte & Touche LLP and the personal accountant for Christopher K. Bagdasarian.  B. Normandy America Inc. was a Delaware corporation formed in 1994 to operate, through a subsidiary, as a reinsurance company. In May 1995, Normandy America filed a registration statement with the Commission for a $200 million initial public offering of securities. According to the registration statement, Normandy America's success as a reinsurer would depend on the ability of Christopher K. Bagdasarian, the company's Chief Executive Officer and Chairman of the Board, to successfully invest its reinsurance premium income in a portfolio of equity securities. Normandy America's registration statement became effective on August 11, 1995, and its stock, registered with the Commission pursuant to Exchange Act Section 12(g), commenced trading on the NASDAQ National Market System on August 15, 1995. On August 16, 1995, Normandy withdrew its offering from the market and rescinded all trades.  C. On September 26, 1996, the Commission filed a complaint against White and Bagdasarian in the United States District Court for the Southern District of New York. [ SEC v. Christopher K. Bagdasarian and Sam Lance White , No. 96-CV-7306 (S.D.N.Y.).] The Commission's complaint alleged, among other things, that: (1) White engaged in a fraudulent scheme with Bagdasarian to fabricate an investment track record for Bagdasarian that was included in the registration statement for Normandy America's initial public offering; (2) White perpetrated the fraudulent scheme by repeatedly providing false and misleading information to the underwriters and underwriters' counsel; (3) White issued, on behalf of Deloitte, four "agreed-upon procedures" letters to the underwriters that falsely stated that the investment results described in the registration statement were complete and accurate, when in fact no Deloitte personnel performed any work to verify Bagdasarian's investment performance results as described in the registration statement; (4) White falsely represented that all of the assets Bagdasarian managed had been disclosed in Normandy's registration statement, and that Bagdasarian had sole authority to make investment decision for those assets, when in fact Bagdasarian managed approximately $45 million in additional assets that were not disclosed; and (5) between 1991 and 1995, White verified false statements in quarterly letters sent by Bagdasarian to a New York bank to enable Bagdasarian to obtain over twelve million dollars in unsecured lines of credit.  D. Also on September 26, 1996, White was indicted by a grand jury in the United States District Court for the Southern District of New York. As superseded prior to White's trial, the indictment charged White with felony charges of securities fraud, bank fraud, conspiracy, and false statements arising from White's involvement with Normandy America and Bagdasarian. In November 1997, following a trial, a jury found White guilty on all charges. On June 30, 1999, the court imposed a final judgment sentencing White to imprisonment for 57 months and ordering him to pay $6,475,898 in restitution. [United States v. Samuel Lance White, No. 96 Cr. 869 (S.D.N.Y.).]  E. On April 18, 2000, a final judgment was entered by the United States District Court for the Southern District of New York enjoining White from violating Section 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"), Exchange Act Rule 10b-5. White consented to entry of the judgment without admitting or denying the allegations of the Commission's complaint.  III.   FINDINGS   Based on the foregoing, the Commission finds that: (a) on June 30, 1999, the United States District Court for the Southern District of New York imposed a final judgment convicting White of felony crimes involving moral turpitude; and (b) on April 18, 2000, in an action brought by the Commission, the United States District Court for the Southern District of New York entered a final judgment permanently enjoining White from violating Securities Act Section 17(a) and Exchange Act Section 10(b) and Rule 10b-5 by reason of his misconduct.  IV.   ORDER IMPOSING SANCTIONS   Based on the foregoing, the Commission deems it appropriate and in the public interest to accept White's Offer of Settlement and accordingly,  IT IS HEREBY ORDERED, effective immediately, that White is denied the privilege of appearing or practicing before the Commission as an accountant.  By the Commission.  Jonathan G. Katz  Secretary    Footnote     1  Rule 102(e) provides, in pertinent part:      (2) [A]ny person who has been convicted of a felony or a misdemeanor involving moral turpitude shall be forthwith suspended from appearing or practicing before the Commission. . . .  (3)(i) The Commission, with due regard to the public interest and without preliminary hearing, may, by order . . . suspend from appearing or practicing before it any . . . accountant . . . who . . . has been by name: (A) Permanently enjoined by any court of competent jurisdiction by reason of his misconduct in an action brought by the Commission, from violation or aiding and abetting the violation of any provision of the Federal securities laws or of the rules and regulations thereunder . . . .  (iv) . . . A person who has consented to the entry of a permanent injunction . . . without admitting the facts set forth in the complaint shall be presumed for all purposes under this paragraph (3) to have been enjoined by reason of the misconduct alleged in the complaint.      
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1264.txt b/raw/aaer/2000/AAER-1264.txt
new file mode 100644
index 0000000000000000000000000000000000000000..c6af48874b136e18f6ef4e4e191de027ffcf5729
--- /dev/null
+++ b/raw/aaer/2000/AAER-1264.txt
@@ -0,0 +1,1364 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Christopher K. Bagdasarian and Sam Lance White 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483406","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Christopher K. Bagdasarian and Sam Lance White
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Christopher K. Bagdasarian and Sam Lance White
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+   Washington, D.C. 
+
+ Litigation Release No.  16580 / June 1, 2000
+   Accounting and Auditing Enforcement Release No.  1264 / June 1, 2000
+
+  SECURITIES AND EXCHANGE COMMISSION v. CHRISTOPHER K. BAGDASARIAN AND SAM LANCE WHITE, Case No. 96-cv-7306 (S.D.N.Y.)  
+
+  COURT ENTERS FINAL JUDGMENT AGAINST SAMUEL LANCE  WHITE FOR HIS ROLE IN NORMANDY AMERICA OFFERING   
+
+ The Securities and Exchange Commission announced that on April 18, 2000, the United States District Court for the Southern District of New York entered a final judgment against Samuel Lance White that permanently enjoins him from violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and Exchange Act Rule 10b-5.  White consented to entry of the judgment without admitting or denying the allegations of the Commission's complaint.  Based on White's demonstrated inability to pay, the Court imposed no civil penalty against him. 
+
+   The Commission's complaint, filed on September 26, 1996, charged White with participating in a fraudulent scheme involving a $200 million initial public offering by Normandy America Inc., a Delaware reinsurance company whose business plan depended on the ability of its chief executive, Christopher K. Bagdasarian, to successfully invest its reinsurance premium income in a portfolio of equity securities.   Among other things, the complaint alleged that White helped fabricate an investment track record for Bagdasarian that was included in Normandy America's registration statement, provided false and misleading information to Normandy America's underwriters, and verified false information sent by Bagdasarian to Normandy America's lenders.  [See Lit. Rel. 15075 (September 26, 1996).]  Contemporaneous with the filing of the Commission's complaint, White was also indicted by a grand jury in the United States District Court for the Southern District of New York on related criminal charges.  A jury convicted White on all criminal charges in November 1997, and on June 30, 1999 the court sentenced him to 57 months imprisonment and ordered him to pay $6,475,898 in restitution.  [United States v. Samuel Lance White, No. 96 Cr. 869 (S.D.N.Y.)] 
+
+   In a related matter, on June 1, 2000, the Commission issued an administrative order pursuant to Rule 102(e) of the Commission's Rules of Practice denying White the privilege of appearing or practicing before the Commission as an accountant based on his criminal conviction and the entry of the court's injunction against him.  White consented to the issuance of the Commission's order without admitting or denying the matters set forth therein, except for admitting that the final judgments upon which the order was based were entered against him.  [See Rel. No. 34-42879 (June 1, 2000).]  
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1266.txt b/raw/aaer/2000/AAER-1266.txt
new file mode 100644
index 0000000000000000000000000000000000000000..268eecef1c350e663ea209970d2c1072db2332cb
--- /dev/null
+++ b/raw/aaer/2000/AAER-1266.txt
@@ -0,0 +1,1480 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Danny R. Auerbach, Michael L. Glaser, and James Montgomery, II 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359581","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Danny R. Auerbach, Michael L. Glaser, and James Montgomery, II
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Danny R. Auerbach, Michael L. Glaser, and James Montgomery, II
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No. 42882 / June 1, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No. 1266 / June 1, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No. 3-10042
+  
+  
+      
+In the Matter of   
+ 
+James D. Montgomery, II,  Danny R. Auerbach, and  Michael L. Glaser   
+  Respondent.  
+   
+
+  : : : : : : :    
+   
+  ORDER MAKING FINDINGS 
+AND IMPOSING A 
+CEASE-AND-DESIST  
+ORDER AS TO 
+DANNY R. AUERBACH     I. 
+
+ On September 28, 1999, the Securities and Exchange Commission ("Commission") deemed it appropriate that public administrative cease-and-desist proceedings be instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Danny R. Auerbach ("Auerbach").   
+
+   Following the institution of those proceedings, Auerbach submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceeding brought by or on behalf of the Commission or in which the Commission is a party, Auerbach consents to the entry of this Order Making Findings and Cease-and-Desist Order ("Order") without admitting or denying the findings set forth herein, except as to the jurisdiction of the Commission over him and over the subject matter of these proceedings, which are admitted. 
+
+   The Commission has determined that it is appropriate to accept Auerbach's Offer and accordingly is issuing this Order.  
+
+ II. 
+
+   On the basis of this Order and the Offer, the Commission finds the following:  1   
+
+   A. Computone Corporation ("Computone") is a company headquartered in Alpharetta, Georgia that designs, manufactures and sells computer hardware and software products. Computone's common stock is registered pursuant to Section 12(g) of the Exchange Act. 
+
+   B. Computone filed with the Commission its January 3, 1997 Form 10-QSB on February 14, 1997. 
+
+   C. Auerbach, of Lawrenceville, Georgia, was Computone's national sales manager in January 1997. 
+
+   D. On or about January 3, 1997, the last day of Computone's FY 1997 third quarter, Auerbach was instructed by the then President of Computone to prepare an internal Computone sales order form reflective of the quantities of product Auerbach anticipated that a customer of Computone's, for whom Auerbach had principal responsibility, would be ordering.  Auerbach complied with the request. Auerbach knew that a purchase order from the customer had not been received by Computone.  No purchase order was received as of the end of the quarter. 
+
+     E. In part as the result of Auerbach's conduct, Computone recognized this transaction as a sale which caused it to overstate materially its FY 1997 third quarter reported income from continuing operations by approximately $75,830.  In part, this caused Computone to report $126,000 of income from continuing operations during this quarter rather than a loss of approximately $488,992. 
+
+ F. Auerbach  committed violations of Section 13(b)(5) of the Exchange Act, committed violations and caused Computone to violate Rule 13b2-1 of the Exchange Act, and caused Computone to violate Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B) of the Exchange Act and Rules 10b-5 and 13a-13, thereunder, as more particularly described in paragraphs II.A through E, above. 
+
+             III. 
+
+   In view of the foregoing, it is appropriate to impose the sanction agreed to in the Offer. Accordingly, IT IS HEREBY ORDERED that Auerbach cease and desist from committing or causing any violation and any future violation of Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-1 thereunder and from causing any violation or any future violation of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rule 13a-13 thereunder. 
+
+
+
+  By the Commission. 
+
+           Jonathan G. Katz
+           Secretary 
+  Footnote 
+   1     The findings herein are made pursuant to the Offer of Settlement of Auerbach and are not binding on any other person or entity named as a respondent in this or any other proceeding. 
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1267.txt b/raw/aaer/2000/AAER-1267.txt
new file mode 100644
index 0000000000000000000000000000000000000000..b50d0f0a987be911174204d6c1a8fccde29b04c4
--- /dev/null
+++ b/raw/aaer/2000/AAER-1267.txt
@@ -0,0 +1,1480 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Eric P. Furman, CPA 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359576","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Eric P. Furman, CPA
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Eric P. Furman, CPA
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No. 42901  /  June 6, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No. 1267  /  June 6, 2000  
+
+ ADMINISTRATIVE PROCEEDING
+ File No. 3-10217 
+ 
+
+      
+In the Matter of 
+  
+ERIC P. FURMAN, CPA   Respondent.   
+   
+
+  : : : : : : : :   
+   
+ 
+ORDER INSTITUTING PUBLIC 
+PROCEEDINGS AND OPINION  
+AND ORDER PURSUANT TO RULE  
+102(e) OF THE COMMISSION'S 
+RULES OF PRACTICE
+    I. 
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate that public administrative proceedings be, and hereby are, instituted against Eric P. Furman ("Furman"), a certified public accountant, pursuant to Rule 102(e)(3) of the Commission's Rules of Practice.  1   
+
+ II. 
+
+   In anticipation of the institution of these public administrative proceedings, Furman has submitted an Offer of Settlement which the Commission has determined to accept.  Solely for the purposes of these proceedings and any other proceedings brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings, except that he admits to the Commission's finding that a Final Judgment of Permanent Injunction ("Final Judgment") has been entered against him as set forth in Section III.C. below, and also admits the jurisdiction of the Commission over himself and over the subject matter of this proceeding, Furman consents to the entry of this Order Instituting Public Proceedings and Opinion and Order Pursuant to Rule 102(e) of the Commission's Rules of Practice ("Order"). 
+
+ III. 
+
+   On the basis of this Order and Furman's Offer of Settlement, the Commission makes the following findings: 
+
+   A. Furman, age 37, is and has been a certified public accountant licensed to practice in the State of New York since 1987.  He was the Corporate Controller and Chief Accounting Officer of Micro Warehouse, Inc. ("Micro Warehouse").  Furman has practiced before the Commission within the meaning of Rule 102(f) of the Commission's Rules of Practice in connection with the preparation of Micro Warehouse's financial statements and other documents. 
+
+   B. Micro Warehouse is a Delaware corporation that serves as a direct marketer of brand name MacIntosh and IBM compatible personal computers, software, accessories and peripherals.  Micro Warehouse's principal executive offices are located in Norwalk, Connecticut, and its common stock is registered with the Commission pursuant to Section 12(g) of the Securities Exchange Act of 1934 ("Exchange Act"), and is traded on the NASDAQ National Market. 
+
+   C. On March 20, 2000, the Commission filed a complaint against Furman and Stephen M. Hieber in  Securities and Exchange Commission v. Eric P. Furman and Stephen M. Hieber  (" SEC v. Furman" ), D. Conn., Civil Action No. 300-CV-00520 (DJS).  On January 13, 2000, Furman consented to the entry of a Final Judgment against him in  SEC v. Furman , without admitting or denying the allegations in the complaint, except as to jurisdiction, which Furman admitted.  On May 31, 2000, the United States District Court for the District of Connecticut entered the Final Judgment, which permanently enjoins Furman from violating Section 17(a) of the Securities Act of 1933 ("Securities Act"), Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5, 13b2-1 and 13b2-2 promulgated thereunder, and further enjoins him from aiding and abetting violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder. 
+
+   D. The Commission's complaint filed in  SEC v. Furman  alleges, among other things, that from 1994 through the second quarter of 1996 Furman engaged in a scheme to defraud investors by causing Micro Warehouse to materially inflate the profits that it reported to the investing public.  Furman carried out his scheme by causing numerous fictitious manual journal entries to be input into Micro Warehouse's general ledger, which falsely reduced Micro Warehouse's expenses and liabilities.  The inflated profits were reported in financial statements that Micro Warehouse presented in, or incorporated into:  its Forms 10-K for the years ended December 31, 1994 and December 31 1995; its Forms 10-Q for the first, second and third quarters of 1994 and 1995 and the first and second quarters of 1996; a Form S-3 registration statement filed in 1994; and Form S-3 and Form S-4 registration statements filed in 1995.  Furman's scheme caused these documents, each of which was filed with the Commission, to contain materially false and misleading financial statements.  The complaint also alleges that Furman knew, or was reckless in not knowing, that the financial statements presented or incorporated into these filings, some of which were signed by Furman, were materially false and misleading as a result of his conduct.  The complaint further alleges that Furman made materially false and misleading statements, and omitted to state material facts necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading to Micro Warehouse's auditors in connection with the 1994 and 1995 audits of Micro Warehouse's financial statements. 
+
+ IV. 
+
+   Based on the foregoing, the Commission deems it appropriate to accept the Offer of Settlement submitted by Furman and accordingly, 
+
+   IT IS HEREBY ORDERED, effectively immediately, that Furman is denied the privilege of appearing or practicing before the Commission as an accountant. 
+
+   By the Commission. 
+
+               Jonathan G. Katz
+               Secretary 
+  Footnotes 
+
+  1  Paragraph (3) of Rule 102(e) provides, in relevant part, that: 
+
+...(i) The Commission, with due regard to the public interest...may...suspend from appearing or practicing before it any...accountant...who has been by name...permanently enjoined by any court of competent jurisdiction, by reason of his or her misconduct in an action brought by the Commission, from violating or aiding and abetting the violation of any provision of the Federal securities laws or of the rules and regulations thereunder.
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1268.txt b/raw/aaer/2000/AAER-1268.txt
new file mode 100644
index 0000000000000000000000000000000000000000..fac322fb5a5baf3bdc287b73597c5eb8d6121330
--- /dev/null
+++ b/raw/aaer/2000/AAER-1268.txt
@@ -0,0 +1,1371 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Paul Y. Okuda, Stephen A. Thorpe, and David J. Chester 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483426","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Paul Y. Okuda, Stephen A. Thorpe, and David J. Chester
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Paul Y. Okuda, Stephen A. Thorpe, and David J. Chester
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+ Washington, D.C. 
+
+ Litigation Release No.  16584 / June 6, 2000 
+
+ Accounting and Auditing Enforcement Release No. 1268 
+
+  SEC SETTLES FRAUD CASE AGAINST RONALD MOSKOWITZ, FORMER FERROFLUIDICS CHAIRMAN AND CEO  
+
+ SEC v. Ferrofluidics Corp., Ronald Moskowitz, Jerome R. Allen, Jan R. Kirk, Stephen P. Morin, Bruce S. Moody, and the 1991 RPM Irrevocable Trust (97 Civ. 7174 (RMB), S.D.N.Y.) 
+
+   On May 31, 2000, the U.S. District Court for the Southern District of New York entered a final judgment against Ronald Moskowitz, the former Chairman and CEO of Ferrofluidics Corporation, in a pending case (SEC v. Ferrofluidics Corp., Ronald Moskowitz, Jerome R. Allen, Jan R. Kirk, Stephen P. Morin, Bruce S. Moody, and the 1991 RPM Irrevocable Trust).  The judgment enjoins Moskowitz from future violations of the antifraud provisions and certain reporting, internal controls, and record-keeping provisions of the federal securities laws.  Without admitting or denying the Commission's allegations, Moskowitz consented to the entry of the judgment, which also bars him from acting as an officer or director of a public company. 
+
+ In its complaint, the Commission alleged that from early 1991 through June 1993, Moskowitz devised and, with the assistance of members of the company's senior management and others, implemented a broad-ranging scheme to defraud the investing public and enrich himself by materially inflating the company's revenues and earnings and by making numerous other materially false and misleading disclosures about the company's business.  As part of the scheme, Moskowitz and other defendants prepared and disseminated a series of materially false and misleading public statements concerning, among other things, a sham private placement of stock by the company, sales of the company's products, and equity investments made by the company.  Moskowitz and other defendants also disseminated favorable projections concerning Ferrofluidics' future business prospects and profitability, without having any reasonable basis for such projections.  As a result of these activities, potential and actual investors were led to believe that Ferrofluidics was a profitable company with tremendous opportunities for rapid growth and earnings.  In fact, Ferrofluidics was then experiencing problems in developing and manufacturing its products.  During the relevant period, Moskowitz sold (through seven family trusts that he controlled), and directed to be sold, Ferrofluidics stock worth millions of dollars, in a series of private placements and open market transactions, while in the possession of material, nonpublic information about the company. 
+
+   The judgment enjoins Moskowitz from violating Sections 17(a) of the Securities Act, Sections 10(b), Section 13(d), and 16(a) of the Exchange Act, and Rules 10b-5, 13b2-1, 13b2-2, 13d-2, 16a-2 and 16a-3 thereunder.  The judgment also bars him from acting as an officer or director of any issuer required to file periodic reports with the Commission pursuant to Sections 12 or 15(d) of the Exchange Act; and orders him to disgorge unjust enrichment alleged in the complaint of $6,605,687, plus prejudgment interest.  Based on Moskowitz's inability to pay, disgorgement was waived and no penalty was assessed. 
+
+ In a related criminal proceeding (U.S. v. Ronald Moskowitz, 97 Cr. 1122 (MBM)), Moskowitz was sentenced to eight years in prison on two counts, conspiracy and securities fraud.  On May 25, 2000, the U.S. Court of Appeals for the Second Circuit affirmed the criminal judgment and sentence as to Moskowitz (U.S. v. Ronald Moskowitz, Nos. 99-1745 (L), 99-1769 (CON)(MBM), 2000 U.S. LEXIS 11733). 
+
+   The Commission previously instituted five related administrative proceedings:  In the Matter of Paul Y. Okuda, Stephen A. Thorpe, and David J. Chester, Admin. Proc. File No. 3-9345 (July 1, 1997), In the Matter of Helen Chalut and Saleem Noorani, Admin. Proc. File No. 3-9344 (July 1, 1997); In the Matter of  Sheldon S. Traube and George F. Sweeney, Admin. Proc. File No. 3-9283 (March 27, 1997); In the Matter of Kedar Gupta, Alvan Chorney, and Herbert Moskowitz, Admin. Proc. File No. 3-9435 (September 26, 1997); In the Matter of  Dickinson & Co. and T. Marshall Swartwood, Admin. Proc. File No. 3-9321 (May 28, 1997).  In related criminal proceedings, former Ferrofluidics CFO Jan R. Kirk was sentenced to five years in prison (U.S. v. Jan R. Kirk, 97 Cr. 1032 (MBM)), and former Ferrofluidics consultant Jerome Allen was sentenced to six months in prison (U.S. v. Robert Jerome Allen, 97 Cr. 979 & 98 Cr. 884 (MBM)). 
+
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1269.txt b/raw/aaer/2000/AAER-1269.txt
new file mode 100644
index 0000000000000000000000000000000000000000..858f93670e5b4f94cbd918ce56e53ab1646edfd1
--- /dev/null
+++ b/raw/aaer/2000/AAER-1269.txt
@@ -0,0 +1,1439 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Vigue et al. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483436","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Vigue et al.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Vigue et al.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              
+ 
+ Lr16586     
+ UNITED STATES SECURITIES AND EXCHANGE COMMISSION 
+ Litigation Rel. No. 16586 / June 8, 2000 
+ Accounting and Auditing Enforcement Release No. 1269  
+  Securities and Exchange Commission Files Manipulation and 
+Financial Fraud Action     Against Former Officers of 
+Firstmark    
+  SECURITIES AND EXCHANGE COMMISSION V. VIGUE ET AL.  (United States 
+District Court for the District of Maine, C.A. No. 00113-B) 
+ The Securities and Exchange Commission announced today that it filed a civil 
+fraud action against Waterville, Maine residents James F. Vigue, Ivy L. Gilbert 
+and William Goodhue. The Complaint, filed in federal court in Bangor, Maine, 
+alleges that Vigue, the former CEO of Firstmark, carried out a manipulation 
+scheme to support the price of Firstmark stock at $4 per share. According to the 
+Complaint, from 1994 until early 1997, Vigue and Gilbert engaged in a number of 
+manipulative techniques, including: falsifying Firstmark's financial statements 
+by causing Firstmark to recognize income and delay recognizing losses contrary 
+to generally accepted accounting principles ("GAAP"); discouraging or preventing 
+investors from selling their Firstmark stock; using nominee accounts to purchase 
+Firstmark stock; and effecting trades where no real change in ownership took 
+place ("wash sales"). The Complaint also alleges that Vigue made purchases near 
+the end of the trading day in order to make Firstmark's stock price go up (known 
+as "marking the close") and sold stock to a customer simply to reclaim it later 
+at a small profit to the customer. 
+ The Complaint alleges that William Goodhue, a broker who worked for Vigue, 
+assisted Vigue by making many of the manipulative trades and by preventing 
+customers from selling the stock. Specifically, the Complaint alleges that 
+Goodhue maintained a waiting list of shareholders who wanted to sell their stock 
+but were not allowed to until Vigue matched their sell orders with buy orders 
+from other shareholders (a practice known as "matched trades"). The Complaint 
+alleges that Vigue and Gilbert concealed the manipulation scheme by 
+misrepresenting account activity and falsifying client reports.  
+ From December 1994 through March 1996, Firstmark's assets were overstated by 
+ten to eighteen percent. For the fiscal year ended June 30, 1995, Firstmark 
+reported net income before taxes of $771,895 when it should have reported a loss 
+of $54,886. When Vigue's scheme collapsed, in early 1997, the price of Firstmark 
+stock declined from approximately $4 to less than $1. On April 27, 1999, 
+Firstmark stock was delisted from the NASDAQ SmallCap market. Many of 
+Firstmark's approximately 650 shareholders are residents of the Waterville, 
+Maine area.  
+ The Complaint alleges that Vigue defrauded certain trust clients by failing 
+to disclose that he and/or Gilbert were receiving commissions on securities he 
+sold to the trusts. 
+ The Commission's Complaint alleges that Vigue violated the antifraud 
+provisions of the Securities Act of 1933, the Securities Exchange Act of 1934 
+and the Investment Advisers Act of 1940: Section 17(a) of the Securities Act, 
+Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and Sections 206(1) 
+and 206(2) of the Advisers Act. The Complaint also alleges that Vigue violated 
+the margin requirements set forth in Section 7(d) of the Exchange Act and 
+Regulation T, and failed to implement and maintain the company's internal 
+controls in violation of Section 13(b)(5) of the Exchange Act and Rule 13b2-1 
+enacted pursuant to the Exchange Act. The Complaint further alleges that, as the 
+control person of Firstmark's brokerage firm, Vigue is liable under Section 20 
+of the Exchange Act for the subsidiary's violations of the antifraud provisions 
+as set forth in Sections 10(b) and 15(c) of the Exchange Act and Rules 10b-3 and 
+15c1-2 thereunder. Finally, the Complaint alleges that Vigue aided and abetted 
+violations by Firstmark's investment adviser subsidiary of Sections 206(1) and 
+206(2) of the Advisers Act. 
+ The Complaint alleges that Gilbert violated Sections 10(b) and 13(b)(5) of 
+the Exchange Act and Rules 10b-5 and 13b2-1 thereunder, and that she aided and 
+abetted Vigue's violations of Section 10(b) of the Exchange Act and Rule 10b-5 
+thereunder and Sections 206(1) and 206(2) of the Advisers Act. The Complaint 
+alleges that Goodhue violated Section 17(a) of the Securities Act and Section 
+10(b) of the Exchange Act and Rule 10b-5 thereunder and that he aided and 
+abetted Vigue's violations of Sections 206(1) and 206(2) of the Advisers Act. 
+The Complaint alleges in the alternative that Goodhue aided and abetted Vigue's 
+violations of Section 17(a) of the Securities Act and Section 10(b) of the 
+Exchange Act and Rule 10b-5 thereunder.  
+ The Commission seeks the entry of civil injunctions against all of the 
+defendants prohibiting future violations of the securities laws as well as civil 
+monetary penalties. As to Vigue, the Commission seeks disgorgement of the 
+ill-gotten gains he received in the form of commissions, plus prejudgment 
+interest, and an prohibiting him from serving as an officer or director of a 
+public company. 
+ In related matters, Firstmark settled the financial fraud action against it. 
+The company agreed to a Commission Order requiring it to cease and desist from 
+future violations of the antifraud, reporting and books and records provisions 
+of the federal securities laws. In addition, the Commission instituted an action 
+against Firstmark's auditor, Scott E. Edwards, for engaging in improper 
+professional conduct with respect to the audit of Firstmark's 1995 fiscal year 
+financial statements. 
+ The Commission wishes to thank the State of Maine Securities Division for its 
+assistance with this 
+matter.  http://www.sec.gov/enforce/litigrel/lr16586.htm Last update: 
+01/24/2001  
+   
+   Return to previous screen (Litigation 
+Releases)  
+   Return to SEC Home Page   -->
+    
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+   
+   
diff --git a/raw/aaer/2000/AAER-1270.txt b/raw/aaer/2000/AAER-1270.txt
new file mode 100644
index 0000000000000000000000000000000000000000..0c33a264fd190397afd6657f275e02deb052ca14
--- /dev/null
+++ b/raw/aaer/2000/AAER-1270.txt
@@ -0,0 +1,1582 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Firstmark Corp. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359566","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Firstmark Corp.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Firstmark Corp.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  42909 / June 8, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT 
+ Release No.  1270 / June 8, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No. 3-10219 
+ 
+
+      
+In the Matter of 
+  
+Firstmark Corp.   
+  Respondent.   
+   
+
+  : : : : : : : :   
+   
+   ORDER INSTITUTING PROCEEDINGS
+ PURSUANT TO SECTION 21C OF THE
+ SECURITIES EXCHANGE ACT OF 1934,
+ MAKING FINDINGS AND ISSUING 
+CEASE-AND-DESIST ORDER  
+     I.  
+
+     The Securities and Exchange Commission ("Commission") deems it appropriate that cease-and-desist proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Firstmark Corp. ("Firstmark"). 
+
+  II.  
+
+     In anticipation of the institution of these proceedings, Firstmark has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of these proceedings, and any other proceedings brought by or on behalf of the Commission or to which Commission is a party, and without admitting or denying any of the findings contained herein, except those findings pertaining to the jurisdiction of the Commission over it and over the subject matter of these proceedings, which it admits, Firstmark consents to the entry of this Order instituting proceedings, making findings and issuing a cease-and-desist order ("Order").  
+
+  III.  
+
+     On the basis of this Order and the Offer submitted by Firstmark, the Commission finds that:  1   
+
+  A.  Respondent   
+
+    1.  Firstmark   is a Maine corporation which, at all relevant times, owned a registered broker-dealer and a registered investment adviser and made venture capital and other investments.  The company's headquarters was in Waterville, Maine.  Firstmark's stock is registered with the Commission pursuant to Section 12(g) of the Exchange Act.  From December 1992 through April 1999, Firstmark's common stock was listed on the NASDAQ SmallCap Market.   
+
+    B.  Other Relevant Persons   
+
+    1.  Firstmark's former chief executive officer   ("the former CEO") held that position from the early 1980s until January 1997.  He was the chairman of Firstmark's board of directors until November 1998.  At all relevant times, the former CEO was responsible for all aspects of Firstmark's operations.   
+
+    2.  Firstmark's former chief financial officer   ("the former CFO") held that position, as well as serving as secretary and treasurer of the company, from the mid-1990s until January 1997.  She served as a director of Firstmark until 1998.  At all relevant times, the former CFO was responsible for maintaining Firstmark's books and records, recording its transactions and preparing its financial statements and periodic reports filed with the Commission. 
+
+          C.   Facts   
+
+    1.   Summary   
+
+   For the periods ended September 30, 1994 through March 31, 1996, Firstmark filed materially false quarterly and annual reports by grossly inflating and improperly accounting for the value of its investments in two start-up companies.  The first investment was in a company in the resale business (the "resale company").  For its fiscal year ended June 30, 1995 and the quarters ended December 31, 1994 through March 31, 1996, Firstmark improperly valued its investment in the resale company at cost.  Because the resale company had become worthless, Firstmark should have written off the investment in the quarter ended December 31, 1994.  The second investment consisted of restricted stock in a small technology company (the "technology company").  For its 1995 fiscal year, Firstmark recognized income on the appreciation in the value of the stock by reclassifying it as a trading security.  Under generally accepted accounting principles ("GAAP"), Firstmark's recognition of income from its investment in the stock of the technology company was improper because Firstmark lacked a basis under Statement of Financial Accounting Standards No. 115 ("FAS 115") for transferring the securities into, and subsequently from, the "trading" category.   
+
+   For the quarter ended September 30, 1994, Firstmark failed to disclose a portion of its investment in the resale company.  For the quarter ended December 31, 1994, instead of net income before taxes of $144,471, Firstmark should have reported a loss of $880,529.  For the quarter ended March 31, 1995, net income before taxes should have been reduced from $99,424 to $84,424.  For the fiscal year ended June 30, 1995, instead of net income before taxes of $771,895, Firstmark should have reported a loss of $54,886.  Throughout the period, Firstmark's assets were overstated from approximately ten to eighteen percent.  Accordingly, Firstmark violated Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1 and 13a-13 thereunder. 
+
+      2.  Quarter Ended September 30, 1994   
+
+   In November 1993, the former CEO began investing in the resale company, which was purportedly going to sell overstock merchandise from a cable television home shopping network.  Firstmark's investments were in anticipation of the resale company's initial public offering ("IPO"), which was supposed to occur during the first half of calendar year 1994.  2    At the end of calendar year 1993, Firstmark's investment in the resale company amounted to $315,000. 
+
+   In July 1994, the former CEO increased the amount of Firstmark's investment in the resale company by providing an additional $360,000 (the "$360,000 payment") to the company, for a total investment of $675,000.  3    In order to limit Firstmark's exposure from the investment, however, the former CEO planned to form and sell interests in a limited partnership investment fund, and then to use the investor funds he raised to reimburse Firstmark for the $360,000 payment.  4   
+
+   To conceal the extent of Firstmark's investment in the resale company, in the Form 10-QSB for the quarter ended September 30, 1994, the former CEO and the former CFO did not include the $360,000 payment within the line item on the balance sheet entitled "other investments," which contained the balance of Firstmark's investment in the resale company.  Instead, they included the payment within the line item called "prepaid expenses and other current assets," which totaled $530,326.  In a footnote that discussed the pending formation of the limited partnership investment fund, Firstmark disclosed that it had invested $360,000 in connection with forming the partnership.  Firstmark did not disclose that it had provided the $360,000 payment to the resale company, thus increasing its exposure to the company.  This information was material because the $360,000 payment increased Firstmark's investment in the resale company from five percent to ten percent of total assets.  Accordingly, a reader of Firstmark's financial statements had no way of knowing that the explanatory footnote was referring to an amount included in the prepaid expenses and other current assets line item, or that the $360,000 purportedly invested in connection with the limited partnership had been invested in the resale company. 
+
+      3.  Quarter Ended December 31, 1994   
+
+   From September 30, 1994 through December 31, 1994, Firstmark loaned an additional $175,000 to the resale company, for a total of $900,000, including the $360,000 payment.  In Firstmark's Form 10-QSB for the quarter ended December 31, 1994, the former CEO and the former CFO valued the total resale investment at cost.  Also in December 1994, the resale company granted stock to Firstmark as payment for consulting services and arranging loans.  In its December Form 10-QSB, Firstmark recognized as revenue $125,000 in fee income based on this receipt of worthless stock from the resale company.  In addition, Firstmark continued to report the $360,000 payment within the line item entitled prepaid expenses and other current assets and to carry it at cost, without disclosing that it increased Firstmark's exposure to the resale company.  
+
+   By December 1994, the former CEO and the former CFO should have written off Firstmark's investment in the resale company, because they knew or were reckless in not knowing that the resale company was worthless.  According to GAAP, a loss in value which is other than a temporary decline should be recognized.   See  Accounting Principles Board Opinion No. 18 ("APB 18"), ¶ 6.  Evidence of a loss in value includes, among other things, absence of an ability to recover the carrying amount of the investment or inability of the entity that received the investment to sustain an earnings capacity which would justify the carrying amount of the investment.  By December 1994, it was clear that the resale company was worthless and unable to sustain an earnings capacity which would justify carrying the investment at cost.  The resale company's IPO had not occurred.  Instead, it was experiencing severe financial distress.  The resale company was no longer functioning and owed substantial sums to creditors, including the Internal Revenue Service.  The situation grew so bad that, beginning in December 1994, Firstmark's former CEO directed the controller to wire funds from Firstmark to the personal bank accounts of the resale company's CEO and his wife.  5    Funds were wired weekly to cover the resale company's expenses and were to personal bank accounts to prevent creditors from seizing the funds.    
+
+   The former CEO and the former CFO also knew, or were reckless in not knowing, that it was improper to recognize as revenue $125,000 in fee income from the receipt of shares of the resale company for consulting services.  During the quarter, Firstmark received 250,000 shares of stock in the resale company, which it arbitrarily valued at fifty cents per share.  According to GAAP, to recognize revenue, there must be a completed exchange of goods or services for something of value.  GAAP provides that revenue should be recognized in financial statements when it is realized or realizable and earned.  Financial Accounting Standards Board Statement of Financial Accounting Concepts No. 5, ¶ 83 ("CON 5").  Revenue is realized when products (goods or services) are "exchanged for cash or claims to cash" and is "realizable when related assets received or held are readily convertible into known amounts of cash or claims to cash."  CON 5, ¶ 83(a).  Here, the valueless stock that Firstmark received from the resale company was not readily convertible into cash or a claim to cash, thus it was improper to recognize revenue based on its receipt. 
+
+   If correct accounting treatment had been applied and Firstmark's investment in the resale company had been written off, Firstmark would have been required by GAAP to deduct the cost of the investment -- a total of approximately $1.025 million by December 31, 1994 -- from income.  This would have erased Firstmark's net income before taxes for the quarter ended December 31, 1994 of $144,471 and resulted instead in a loss of $880,529.  In addition, Firstmark's assets were overstated by approximately 17%. 
+
+      4.  Quarter Ended March 31, 1995   
+
+   Between January 1, 1995 and March 31, 1995, the former CEO loaned the resale company an additional $15,000 of Firstmark's funds.  These funds were again wired to the personal bank accounts of the resale company's CEO and his wife to prevent creditors from seizing them.  In early 1995, the former CEO began negotiating with the principals of the resale company to "exchange" Firstmark's investment for an interest in various, other, yet-to-be-financed companies.  Notwithstanding the obvious collapse of the resale company, the former CEO and the former CFO prepared, signed and filed a Form 10-QSB for the quarter ended March 31, 1995 that reported Firstmark's $1.04 million investment in the resale company at cost.  Further, the additional $15,000 provided to the resale company during the quarter should have been written off, thus reducing Firstmark's net income before taxes from $99,424 to $84,424 for the quarter.  The $360,000 payment continued to be carried at cost within the prepaid expenses and current assets line item, without disclosure that it was an investment in the resale company.  Assets as of March 31, 1995 were overstated by approximately 18%. 
+
+      5.  Fiscal Year Ended June 30, 1995   
+
+   The former CEO and former CFO prepared, signed and filed a Form 10-KSB for the fiscal year ended June 30, 1995 that overstated Firstmark's net income by $826,781 and overstated assets by 13%.  Instead of net income before taxes of $771,895, Firstmark should have reported a loss of $54,886.  The overstatement occurred because Firstmark failed to write off the worthless resale company investment and because it improperly reclassified its technology company stock as a trading security.  The former CEO was motivated to overstate Firstmark's net income because he wanted to apply to list Firstmark's stock on the NASDAQ National Market System or the American Stock Exchange, which required at least $750,000 in pretax income for eligibility.  
+
+      a.  The Resale Company   
+
+   As of June 30, 1995, the former CEO and CFO improperly reported Firstmark's investment in the resale company at cost.  For the year ended June 30, 1995, they improperly recognized as revenue $125,000 in fee income for services provided in exchange for stock from the resale company.  Firstmark should have written off the entire investment, totaling $680,000, because the investment had become worthless.  6   
+
+      b.  The Technology Company   
+
+     For the fiscal year ended June 30, 1995, Firstmark improperly recorded and reported income from unrealized gains on restricted stock in the technology company, which Firstmark had purchased in a private sale in May 1995.  Under FAS 115, which Firstmark implemented in fiscal 1995, securities must be classified in one of three categories upon acquisition:  (1) trading; (2) available-for-sale; or (3) held-to-maturity.  Under FAS 115, equity securities must be classified as either available-for-sale or trading, since they have no stated maturity date.  According to FAS 115, trading generally reflects active and frequent buying and selling.  Trading securities are bought and held principally for the purpose of selling them in the near term and are used to generate profits on short-term differences in price.  Available-for-sale securities are any securities not intended to be traded and not intended to be held to maturity.  FAS 115 provides that, if securities are classified as trading securities, unrealized gains or losses resulting from increases or decreases in their value are included in income.  If securities are classified as available-for-sale, unrealized gains and losses are excluded from income and are reported in a separate component of shareholders' equity until realized. 
+
+     During the preparation of Firstmark's fiscal 1995 financial statements, the former CEO improperly reclassified the restricted stock held by Firstmark in the technology company as a trading security as of June 30, 1995 so that he could record and report income.  In May 1995, upon purchase, Firstmark's controller classified the stock as available-for-sale.  However, in August 1995, when preparing Firstmark's fiscal 1995 financial statements, the former CEO instructed the controller to reclassify the stock from the available-for-sale category into the trading category as of June 30, 1995.  Shortly thereafter, the former CEO instructed the controller to change the classification back to the available-for-sale category for the period beginning July 1, 1995.   
+
+     Firstmark's recording of income based on its holdings of the technology stock was improper because Firstmark lacked an appropriate basis under FAS 115 for transferring the securities into, and subsequently from, the trading category.  According to paragraph 15 of FAS 115, transfers into or from the trading category should be rare; the decision to classify a security as trading should occur at acquisition.  7    The former CEO's abrupt reclassification of the technology stock to the trading category at June 30, 1995 and back to the available-for-sale category for the next reporting period indicates that the reclassification was performed solely to manage earnings by recording gains associated with trading securities in current income.  By including this unrealized gain in income, the former CEO increased Firstmark's 1995 pretax income by 23%.   
+
+     The former CEO stated in an August 30, 1995 letter to Firstmark's outside auditors that he did not intend to sell any of the technology company stock until the next year.  It should be noted that even if Firstmark's management had indicated, as of June 30, 1995, its intention to sell its technology stock within a year, the stock still should have remained in the available-for-sale category.  Paragraph 81 of FAS 115 indicates that available-for-sale securities should not automatically be transferred to the trading category because management decides to sell the securities within one year.  8   
+
+      6.  Quarters Ended September 30, 1995;   December 31, 1995 and March 31, 1996   
+
+   For the quarters ended September 30, 1995; December 31, 1995 and March 31, 1996, Firstmark continued to carry its $680,000 investment in the worthless resale company at cost.  As a result, during these periods, Firstmark's assets were overstated by approximately ten percent.  9   
+
+      7.  Lack of Internal Controls   
+
+   The former CEO and the former CFO were able to misstate Firstmark's operating results because they had complete control over Firstmark's books and records and financial statements.  Until March 1996, Firstmark had inadequate internal controls, no audit committee and no outside directors. 
+
+  
+
+  D.  Violations   
+
+            1.  The Antifraud Provisions   
+
+     Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder make it unlawful to make any untrue statements or omissions of material fact in the offer, purchase, or sale of securities.  To establish a claim under Section 17(a)(1) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, the Commission must prove scienter.   See   Aaron v. SEC , 446 U.S. 680 (1980).  10    The Supreme Court has defined the term "scienter" as a "mental state embracing intent to deceive, manipulate or defraud."   Ernst & Ernst v. Hochfelder , 425 U.S. 185, 193 n.12 (1976).  To demonstrate materiality, the Commission must prove that there is a substantial likelihood that a reasonable investor would consider an omitted fact or misstatement to be important in making his or her investment decision.   Basic, Inc. v. Levinson , 485 U.S. 224 (1988).  False statements in periodic reports are in the offer and sale of securities, as required by Section 17(a) of the Securities Act, if the issuer sells its stock during the period.  Such false statements meet the in-connection-with requirement of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder if trading in the issuer's securities ensues.   SEC v. Benson , 657 F. Supp. 1122, 1131 (S.D.N.Y. 1987);  see also   SEC v. Rana Research, Inc. , 8 F.3d 1358 (9th Cir. 1993) (false statements in press releases). 
+
+     Firstmark violated the antifraud provisions of the Securities Act and the Exchange Act, because its former CEO and former CFO filed materially false Forms 10-QSB for the periods ended September 30, 1994 through March 31, 1996 and a materially false Form 10-KSB for the fiscal year ended June 30, 1995.  For the periods ended December 31, 1994 and June 30, 1995, Firstmark recognized income based on its receipt of stock from the worthless resale company, and it failed to write down its investment in the company.  For the periods ended September 30, 1994 through March 31, 1995, Firstmark concealed that it had made an additional $360,000 advance to the resale company.  Firstmark also fraudulently recognized income based on its valuation of stock in the technology company by claiming that that restricted stock was a trading security which had appreciated in value.  As a result, Firstmark falsely reported net income for its fiscal year ended June 30, 1995 of $771,895, when it should have reported a loss of $54,886.  During the relevant period, Firstmark's stock was publicly traded.  Therefore, Firstmark's misstatements were in connection with the purchase or sale of securities.  Firstmark's overstatement of income was material because it masked a loss.  A reasonable investor would have viewed such a large overstatement as significantly altering the total mix of information made available. 
+
+     Firstmark acted with scienter because the mental state of its former senior officers can be imputed to it.   SEC v. Manor Nursing Centers, Inc. , 458 F.2d 1082, 1096 n.16 (2d Cir. 1972).  The former CEO knew at least as early as late 1994 that Firstmark's investment in the resale company was worthless and should have been written off.  The former CFO knew, or was reckless in not knowing, that Firstmark's investment in the resale company was worthless.  Likewise, the former CEO knew that classifying Firstmark's restricted, illiquid technology company stock as a trading security as of June 30, 1995, and recognizing income from an unrealized gain in the stock, did not conform with GAAP.  The former CEO also acted with scienter because he overstated Firstmark's pretax income in order to make Firstmark eligible for listing on the NASDAQ National Market System or the American Stock Exchange.  Accordingly, Firstmark violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. 
+
+            2.  Reporting, Books and Records    and Internal Controls Provisions   
+
+     Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 require every issuer of securities registered with the Commission pursuant to Section 12 of the Exchange Act to file annual and quarterly reports with the Commission.  Rule 12b-20 of the Exchange Act requires that, in addition to the information expressly required to be included in reports, further information must be added if necessary to make the required statements not misleading.  Courts interpreting Section 13 of the Exchange Act have held that "the reporting provisions of the Exchange Act are clear and unequivocal, and they are satisfied only by the filing of complete, accurate and timely reports."   Sky Scientific , Initial Dec. Rel. No. 137, 1999 SEC LEXIS 475, at *109 (citing  SEC v. Savoy Industries, Inc. , 587 F.2d 1149, 1165 (D.C. Cir. 1978)).  Scienter is not required to establish a violation of Section 13(a) because it is a reporting provision, as opposed to an antifraud provision, of the securities laws.   SEC v. Wills , 472 F. Supp. 1250, 1268 (D.D.C. 1978);  SEC v. Aydin Corp. , [1979-80 Transfer Binder] Fed. Sec. L. Rep. (CCH) ¶ 97,111, at 96,174 (D.D.C. Sept. 14, 1979);  SEC v. Savoy Industries, Inc. , 587 F.2d 1149, 1167 (D.C. Cir. 1978).  Firstmark violated Section 13(a) of the Exchange Act and Rules 13a-1, 13a-13 and 12b-20 thereunder by filing false quarterly and annual reports for the periods ended September 30, 1994 through March 31, 1996. 
+
+     Section 13(b)(2)(A) of the Exchange Act requires reporting companies to make and keep books, records and accounts which, in reasonable detail, accurately and fairly reflect the transactions and disposition of the assets of the issuer.  This section was enacted to "promote the reliability and completeness of financial information that issuers are required to file with the Commission or to disseminate to investors pursuant to the Exchange Act."   SEC v. World-Wide Coin Investments, Ltd. , 567 F. Supp. 724, 747 (N.D. Ga. 1983).  Section 13(b)(2)(B) of the Exchange Act requires issuers to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that financial statements are prepared in conformity with GAAP.  Firstmark violated Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act by failing to maintain accurate books and records and by failing to devise and maintain a system of internal controls. 
+
+  IV.  
+
+     On the basis of this Order and the Offer of Settlement that Firstmark has submitted, the Commission finds that Firstmark committed violations of Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1 and 13a-13 thereunder. 
+
+  V.  
+
+     In view of the foregoing, the Commission deems it appropriate to accept the Offer and to issue the cease-and-desist order set forth therein. 
+
+  VI.  
+
+ Accordingly, IT IS HEREBY ORDERED, pursuant to Section 21C of the Exchange Act that: 
+
+     A. Firstmark shall cease and desist from committing or causing any violation and any future violation of Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1 and 13a-13 thereunder. 
+
+
+     By the Commission. 
+
+                     Jonathan G. Katz
+   Footnotes 
+
+
+   1     The findings herein are made pursuant to Firstmark's Offer of Settlement and are not binding on any other person or entity in this or any other proceeding. 
+
+   2      Throughout this period, the former CEO, through Firstmark's broker-dealer subsidiary, purchased and sold Firstmark's common stock. 
+
+   3      In September 1994, Firstmark invested an additional $50,000 for a total investment as of September 30, 1994 of $725,000. 
+
+   4     In late 1994, the former CEO filed a registration statement with the state of Maine to sell interests in the limited partnership.  In February 1995, he began selling the interests, raising approximately $900,000 by September 1995. 
+
+   5       These payments were included in the amount of Firstmark's investment. 
+
+   6     In Firstmark's report on Form 10-KSB for the fiscal year ended June 30, 1995, the former CEO and the former CFO removed the $360,000 payment from the prepaid expense and current assets category and reclassified it as an advance to a related party.  By June 30, 1995, the former CEO had begun to sell interests in the limited partnership investment fund, to which he intended to transfer the $360,000 payment.  Accordingly, for the first time, funds were available to reimburse Firstmark for the $360,000 payment.  The risk exposure for that portion of the investment in the resale company had thus been transferred to the limited partner investors. 
+
+   7     See   also  Question 35 of the FASB Staff Implementation Guide for FAS 115, issued November 1995. 
+
+   8     See   also  Question 36 of the FASB Staff Implementation Guide for FAS 115, issued November 1995. 
+
+   9     In June 1996, new management and a larger, reconstituted board assumed control of Firstmark's  operations.  As of June 30, 1996, Firstmark wrote off its entire investment in the resale company. 
+
+   10     Scienter is not a necessary element of a Section 17(a)(2) or (3) violation.   See   Aaron , 446 U.S. at 695-96.  
+
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1273.txt b/raw/aaer/2000/AAER-1273.txt
new file mode 100644
index 0000000000000000000000000000000000000000..73b514f8eac37a587beb515e91eccd000bd1e58b
--- /dev/null
+++ b/raw/aaer/2000/AAER-1273.txt
@@ -0,0 +1,1545 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Paul Hiznay 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359501","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Paul Hiznay
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Paul Hiznay
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  42934 / June 14, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1273 / June 14, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No.  3-10226 
+
+     
+ In the Matter of 
+   
+PAUL HIZNAY,   
+  Respondent.   
+   
+
+    : : : : : : : :   
+   
+   
+ORDER INSTITUTING PUBLIC 
+ADMINISTRATIVE PROCEEDINGS 
+PURSUANT TO SECTION 21C OF THE  
+SECURITIES EXCHANGE ACT OF 1934, 
+MAKING FINDINGS, AND IMPOSING 
+A CEASE-AND-DESIST ORDER
+      I.  
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate that public administrative proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Paul Hiznay ("Hiznay" or "Respondent"). 
+
+  II.  
+
+   In anticipation of the institution of these administrative proceedings, Hiznay has submitted an Offer of Settlement ("Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings, and any other proceedings brought by or on behalf of the Commission, or in which the Commission is a party, without admitting or denying the findings set forth below, except as to jurisdiction of the Commission over him and over the subject matter of these proceedings, which Respondent admits, Respondent consents to the entry of this Order Instituting Public Administrative Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order ("Order") set forth below. 
+
+   Accordingly, it is ordered that proceedings pursuant to Section 21C of the Exchange Act be, and hereby are, instituted. 
+
+  III.  
+
+   FACTS   
+
+   The Commission makes the following findings:  1   
+
+   A. RESPONDENT   
+
+   Paul Hiznay, age 37, was a mid-level Accounting Manager at the Comp-U-Card division of CUC International Inc. ("CUC") from July 1995 until October 1997.  During that time he ran the day-to-day activities of Comp-U-Card's accounting operations in Trumbull, Connecticut.  Hiznay is a certified public accountant and resides in Trumbull, Connecticut. 
+
+  B.  OTHER RELEVANT ENTITIES   
+
+ 1. HFS Incorporated ("HFS") was a Delaware corporation that had its headquarters in Parsippany, New Jersey, and was principally a controller of franchise brand names in the hotel, real estate brokerage, and car rental businesses.  Its securities were registered pursuant to Section 12(b) of the Exchange Act and traded on the New York Stock Exchange ("NYSE").   
+
+ 2. CUC was a Delaware corporation that had its headquarters in Stamford, Connecticut, and was principally engaged in membership-based consumer services, such as auto, dining, shopping, and travel "clubs."  CUC's securities also were registered pursuant to Section 12(b) and traded on the NYSE.   
+
+ 3. Cendant Corporation, a Delaware corporation with its headquarters in New York City, was created through the December 17, 1997, merger of HFS and CUC.  Cendant provides certain membership-based and Internet-related consumer services and controls franchise brand names in the hotel, residential real estate brokerage, car rental, and tax preparation businesses.  For corporate law purposes, Cendant is CUC.  Pursuant to the Agreement and Plan of Merger between CUC and HFS, on December 17, 1997, HFS was merged with and into CUC, with CUC continuing as the surviving corporation and changing its name to Cendant Corporation.  As of March 1, 2000, Cendant's common stock, Income PRIDES, and Growth PRIDES were registered pursuant to Section 12(b) of the Exchange Act and traded on the NYSE.  Cendant's 6.45% Trust Originated Preferred Securities, 7 3/4% Notes due 2003, and 3% Convertible Subordinate Notes due 2002 were registered pursuant to Section 12(g) of the Exchange Act. 
+
+  C.  THE SCHEME   
+
+   Beginning in at least 1985, certain members of CUC's senior management implemented a scheme designed to ensure that CUC always met the financial results anticipated by Wall Street analysts.  The CUC senior managers utilized a variety of means to achieve their goals.  In the earlier years of the scheme, they relied in large part on manipulating recognition of the company's membership sales revenue.  The CUC senior managers also improperly utilized two liability accounts related to membership sales, consistently maintaining inadequate balances in the accounts and on occasion reversing the accounts directly into operating income.  To hide the inadequate balances, senior management periodically kept certain membership sales transactions off-books.  In what was the most significant category quantitatively, the CUC senior managers intentionally overstated merger and purchase reserves and subsequently reversed those reserves directly into operating expenses and revenues.  Finally, CUC senior management improperly wrote off assets -- including assets that were unimpaired -- and improperly charged the write-offs against the company's merger reserves.  By manipulating the timing of the write-offs and by improperly determining the nature of the charges incurred, the CUC senior managers used the write-offs to inflate operating income at CUC.   
+
+ CUC senior management supervised the scheme over the course of each fiscal year.  Beginning in at least 1988, senior management regularly made certain aggregate changes to CUC's reported quarterly financial results.  Accordingly, at the end of each of the company's first three fiscal quarters, CUC senior managers directed subordinate financial reporting personnel at CUC corporate headquarters to add whatever amounts were needed in order to bring CUC's quarterly income up to analysts' expectations.  Thus, for each of the first three quarters of a CUC fiscal year, the CUC senior managers artificially inflated revenues and decreased operating expenses.  In conjunction with these income statement changes, the senior managers also cosmetically altered certain CUC balance sheet items. 
+
+   At the end of each fiscal year, the CUC senior managers implementing the scheme inflated the company's annual results as recorded on its books and records, so that the books and records would be consistent with the financial results already released and so that CUC's reported annual income would, in fact, meet the expectations of Wall Street analysts.  As the scheme progressed over the course of several years, larger and larger year-end adjustments were required.  The scheme added more than $500 million to pre-tax operating income during the fiscal years ended January 31, 1996; January 31, 1997; and December 31, 1997.  2   
+
+   D. HIZNAY'S INVOLVEMENT   
+
+  1. Making Unsupported Post-closing Entries  
+
+   Although Hiznay was not a senior manager at CUC and was not involved in the aggregate adjustments of CUC's reported quarterly results, from July 1995 to October 1997 Hiznay took steps which helped to carry out CUC senior managers' scheme to inflate earnings.   
+
+ In early 1997, at the direction of senior management, Hiznay approved a series of entries reversing the commissions payable liability account into revenue at Comp-U-Card.    CUC paid commissions to certain institutions on sales of Comp-U-Card membership products sold through those institutions.  Accordingly, at the time that it recorded revenue from those sales, CUC created a liability to cover its commissions payable obligation.  Comp-U-Card senior management used false schedules and other devices to support their understating of the commissions payable liability and to avoid the impact that would have resulted if the liability had been properly calculated.  Furthermore, in connection with the January 31, 1997, fiscal year-end, senior management utilized this liability account by directing post-closing entries moving amounts from the liability directly into revenue.  3   
+
+ Accordingly, in February 1997, Hiznay received a schedule from the Comp-U-Card controller setting forth the amounts, effective back-dates, and accounts for a series of post-closing entries reducing the commissions payable account by $9.12 million and off-setting that reduction by increases to Comp-U-Card revenue accounts.  Hiznay approved the entries and had his staff enter them.  Save for his superior's written instructions, the entries were unsupported.  They all carried effective dates spread retroactively over prior months.  The entries reversed the liability account directly into revenues, a treatment that, under the circumstances, was not in accordance with Generally Accepted Accounting Principles.   
+
+ Because the entries carried effective dates spread retroactively over November and December of 1996 and January of 1997, they inflated CUC income by $9.12 million for the fiscal year ended January 31, 1997.  After the Cendant merger, however, the company changed from a CUC fiscal year-end of January 31 to a Cendant fiscal year-end of December 31.  As a function of that change, CUC's January 1997 financial results were reported in both the CUC fiscal year ended January 31, 1997, and the Cendant fiscal year ended December 31, 1997.  Because $2.85 million of the improper February 1997 commissions payable reversals had effective dates in January 1997, that $2.85 million also inflated Cendant's income for the fiscal year ended December 31, 1997. 
+
+ Hiznay received a second schedule of post-closing entries from the Comp-U-Card controller in February 1997.  This second schedule listed the amounts, effective back-dates, and accounts for seventy-seven journal entries reducing a large CUC merger reserve by $35 million, with off-setting entries decreasing various Comp-U-Card operating expense accounts.  Again, Hiznay approved the entries and had his staff enter them.  Again, save for his superior's written instructions, the entries were unsupported, and they all carried effective dates spread retroactively over prior months.  
+
+ Because these merger reserve reversal entries carried effective dates spread over November and December of 1996 and January of 1997, they inflated CUC income by $35 million for the fiscal year ended January 31, 1997.  Again, however, the December 1997 change in fiscal year-end meant that some of the entries inflated income twice.  Because $10 million of the improper merger reserve reversals had effective dates in January 1997, that $10 million also inflated Cendant's income for the fiscal year ended December 31, 1997. 
+
+  2. Keeping Rejects and Cancellations Off-Books   
+
+   During his time at the Comp-U-Card division, Hiznay inherited, but then supervised, a long-standing Comp-U-Card practice of keeping membership sales cancellations and rejects off Comp-U-Card's books during part of each fiscal year.  Certain Comp-U-Card membership products were processed through various financial institutions that billed their members' credit cards for new sales and charges related to the various membership products.  When Comp-U-Card recorded membership sales revenue from such a sale, it would allocate a percentage of the recorded revenue to cover estimated cancellations of the specific membership product being sold, as well as allocating a percentage to cover estimated rejects and chargebacks.  4    Comp-U-Card used these percentage allocations to establish a membership cancellation reserve. 
+
+   Over the years, CUC senior management had developed a policy of keeping rejects and cancellations off the Comp-U-Card general ledger during the last three months of each fiscal year.  Instead, during that quarter, the rejects and cancellations appeared only on cash account bank reconciliations compiled by the Comp-U-Card accounting personnel in Trumbull, Connecticut.  The senior managers then directed the booking of those rejects and cancellations against the membership cancellation reserve in the first three months of the next fiscal year.  Because rejects and cancellations were not recorded against the membership cancellation reserve during the final three months of the fiscal year, the policy allowed CUC to hide the fact that the reserve was dramatically understated at each fiscal year-end.  At its January 31, 1997, fiscal year-end, the balance in the CUC membership cancellation reserve was $29 million, and the Comp-U-Card accounting personnel were holding $100 million in rejects and $22 million in cancellations off-books.  5    Failing to book cancellations and rejects at each fiscal year-end also had the effect of overstating the company's cash position on its year-end balance sheet.   
+
+   E. FALSE FILINGS AND STATEMENTS   
+
+ Between Hiznay's arrival at Comp-U-Card in July 1995 and the discovery of the fraudulent scheme by Cendant management in April 1998, CUC and Cendant filed with the Commission false and misleading periodic reports and other filings.  Those reports and filings included, directly or by incorporation, financial statements that misrepresented the companies' financial conditions and results of operations, overstating their income and their earnings.   
+
+  IV.  
+
+  VIOLATIONS OF THE
+  EXCHANGE ACT REPORTING PROVISIONS   
+
+   Section 13(a) of the Exchange Act and Rule 13a-1 thereunder require issuers with securities registered under Section 12 of the Exchange Act to file annual reports with the Commission and to keep this information current.  The obligation to file such reports embodies the requirement that they be true and correct.   See ,  e . g .,  SEC v. Savoy Indus., Inc. , 587 F.2d 1149, 1165 (D.C. Cir. 1978),  cert. denied , 440 U.S. 913 (1979).   
+
+   As discussed above, between Hiznay's arrival at Comp-U-Card in July 1995 and the discovery of the fraudulent scheme by Cendant management in April 1998, CUC and Cendant filed false and misleading annual reports with the Commission that misrepresented their financial results, overstating operating income and earnings and failing to disclose that the financial results were falsely represented.  Based on the conduct described above, Hiznay was a cause of the companies' violations of Section 13(a) of the Exchange Act and Rule 13a-1 thereunder. 
+
+  V.  
+
+   Based on the foregoing, the Commission finds that Hiznay caused CUC's and Cendant's violations of Section 13(a) of the Exchange Act and Rule 13a-1 promulgated thereunder. 
+
+    VI.  
+
+   In view of the foregoing, the Commission deems it appropriate to accept Respondent's Offer and to impose the sanctions agreed to therein.  In determining to accept the Offer, the Commission considered remedial acts undertaken by Respondent and cooperation afforded the Commission and other authorities.   
+
+   Accordingly,  IT IS HEREBY ORDERED  that 
+
+     Hiznay, pursuant to Section 21C of the Exchange Act, cease and desist from violating, and from causing future violations of, Section 13(a) of the Exchange Act and Rule 13a-1 promulgated thereunder.   
+
+   By the Commission. 
+
+                 Jonathan G. Katz
+                 Secretary 
+  Footnotes 
+
+
+   1    The Commission's findings herein are made pursuant to Respondent's Offer and are not binding upon any other person or entity in these or any other proceedings. 
+
+   2    CUC's fiscal year ended on January 31.  After the December 17, 1997, merger, Cendant adopted a fiscal year ending December 31. 
+
+   3    For purposes of this Order, "post-closing journal entries" means entries that are made after a reporting period has ended, but before the financial statements for the period have been filed, and that have effective dates spread retroactively over prior weeks or months. 
+
+   4    Rejects resulted when the credit card to be charged was over its limit, closed, or reported as lost or stolen.  Chargebacks resulted when a credit card holder disputed specific charges related to a particular membership program.   
+
+   5    Although the reserve was already seriously understated, in February 1997, Hiznay, again at the direction of the Comp-U-Card controller, approved a series of unsupported post-closing entries that reduced the membership cancellation reserve by $15 million, with the off-setting entries decreasing Comp-U-Card expense accounts or increasing Comp-U-Card revenue accounts. 
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1274.txt b/raw/aaer/2000/AAER-1274.txt
new file mode 100644
index 0000000000000000000000000000000000000000..eebf7fff8ccd9f4c61b2908d66431f2a5ee8f62b
--- /dev/null
+++ b/raw/aaer/2000/AAER-1274.txt
@@ -0,0 +1,1604 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Steven Speaks, C.P.A. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359496","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Steven Speaks, C.P.A.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Steven Speaks, C.P.A.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  42935 / June 14, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1274 / June 14, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No.  3-10227 
+
+
+     
+ In the Matter of 
+   
+STEVEN SPEAKS, C.P.A.,   
+  Respondent.   
+   
+
+    : : : : : : : :   
+   
+   
+ORDER INSTITUTING PUBLIC 
+ADMINISTRATIVE PROCEEDINGS 
+PURSUANT TO SECTION 21C OF THE  
+SECURITIES EXCHANGE ACT OF 1934, 
+AND RULE 102(e) OF THE COMMISSION'S 
+RULES OF PRACTICE, MAKING FINDINGS, 
+AND IMPOSING SANCTIONS AND  
+CEASE-AND-DESIST ORDER
+      I.  
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate to institute public administrative proceedings pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 102(e) of the Commission's Rules of Practice  1   against Steven Speaks ("Speaks" or "Respondent"), a certified public accountant. 
+
+  II.  
+
+   In anticipation of the institution of these administrative proceedings, Speaks has submitted an Offer of Settlement ("Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings, and any other proceedings brought by or on behalf of the Commission, or in which the Commission is a party,  2   without admitting or denying the findings set forth below, except as to jurisdiction of the Commission over him and over the subject matter of these proceedings, which Respondent admits, Respondent consents to the entry of this Order Instituting Public Administrative Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934 and Rule 102(e) of the Commission's Rules of Practice, Making Findings, and Imposing Sanctions and Cease-and-Desist Order ("Order") set forth below. 
+
+   Accordingly, it is ordered that proceedings pursuant to Section 21C of the Exchange Act and Rule 102(e) of the Commission's Rules of Practice be, and hereby are, instituted. 
+
+  III.  
+
+   FACTS   
+
+   The Commission makes the following findings:  3   
+
+  A.  RESPONDENT   
+
+   Steven Speaks, C.P.A., age 37, was an employee of Ideon Group, Inc. at the time that it was acquired by CUC International Inc. ("CUC") in August 1996.  In early 1997, Speaks moved to Trumbull, Connecticut, to work in the accounting operations at CUC's largest division, the Comp-U-Card division, and, in June 1997, Speaks became controller of Comp-U-Card.  In December 1997, CUC became Cendant Corporation ("Cendant").  Speaks is licensed as a certified public accountant in North Dakota and resides in Trumbull, Connecticut. 
+
+  B.  OTHER RELEVANT ENTITIES   
+
+   1.  HFS Incorporated ("HFS") was a Delaware corporation that had its headquarters in Parsippany, New Jersey, and was principally a controller of franchise brand names in the hotel, real estate brokerage, and car rental businesses.  Its securities were registered pursuant to Section 12(b) of the Exchange Act and traded on the New York Stock Exchange ("NYSE").   
+
+   2.  CUC was a Delaware corporation that had its headquarters in Stamford, Connecticut, and was principally engaged in membership-based consumer services, such as auto, dining, shopping, and travel "clubs."  CUC's securities also were registered pursuant to Section 12(b) and traded on the NYSE.   
+
+   3.  Cendant Corporation, a Delaware corporation with its headquarters in New York City, was created through the December 17, 1997, merger of HFS and CUC.  Cendant provides certain membership-based and Internet-related consumer services and controls franchise brand names in the hotel, residential real estate brokerage, car rental, and tax preparation businesses.  For corporate law purposes, Cendant is CUC.  Pursuant to the Agreement and Plan of Merger between CUC and HFS, on December 17, 1997, HFS was merged with and into CUC, with CUC continuing as the surviving corporation and changing its name to Cendant Corporation.  As of March 1, 2000, Cendant's common stock, Income PRIDES, and Growth PRIDES were registered pursuant to Section 12(b) of the Exchange Act and traded on the NYSE.  Cendant's 6.45% Trust Originated Preferred Securities, 7 3/4% Notes due 2003, and 3% Convertible Subordinate Notes due 2002 were registered pursuant to Section 12(g) of the Exchange Act. 
+
+  C.  THE SCHEME   
+
+   Beginning in at least 1985, certain members of CUC's senior management implemented a scheme designed to ensure that CUC always met the financial results anticipated by Wall Street analysts.  The CUC managers utilized a variety of means to achieve their goals.  In the earlier years of the scheme, management relied in large part on manipulating recognition of the company's membership sales revenue.  Management also improperly utilized two liability accounts related to membership sales, consistently maintaining inadequate balances in the accounts and on occasion reversing the accounts directly into operating income.  To hide the inadequate balances, management periodically kept certain membership sales transactions off-books.  In what was the most significant category quantitatively, the CUC managers intentionally overstated merger and purchase reserves and subsequently reversed those reserves directly into operating expenses and revenues.  Finally, management improperly wrote off assets -- including assets that were unimpaired -- and improperly charged the write-offs against its merger reserves.  By manipulating the timing of the write-offs and by improperly determining the nature of the charges incurred, management used the write-offs to inflate operating income at CUC.   
+
+   CUC senior management supervised the scheme over the course of each fiscal year.  Beginning in at least 1988, management regularly made certain aggregate changes to CUC's reported quarterly financial results.  Accordingly, at the end of each of the company's first three fiscal quarters, senior managers directed mid-level financial reporting managers at CUC corporate headquarters to add whatever amounts were needed in order to bring CUC's quarterly income up to analysts' expectations.  Thus, for each of the first three quarters of a CUC fiscal year, the managers artificially inflated revenues and decreased operating expenses.  In conjunction with these income statement changes, the managers also cosmetically altered certain CUC balance sheet items. 
+
+   At the end of each fiscal year, the CUC managers implementing the scheme inflated the company's annual results as recorded on its books and records, so that the books and records would be consistent with the financial results already released and so that CUC's reported annual income would, in fact, meet the expectations of Wall Street analysts.  As the scheme progressed over the course of several years, larger and larger year-end adjustments were required.  The scheme added more than $500 million to the company's pre-tax operating income during the fiscal years ended January 31, 1996; January 31, 1997; and December 31, 1997.  4    Of that amount, more than half -- approximately $260 million -- was added to the fiscal year ended December 31, 1997.  5   
+
+  D.  SPEAKS' INVOLVEMENT   
+
+    1. The January 1998 Unsupported Entries  
+
+   Speaks was not part of the management structure at CUC corporate headquarters and was not involved in the aggregate adjustments of CUC's reported quarterly results.  Speaks joined CUC in August of 1996 and did not became controller of the Comp-U-Card division until June of 1997.  Nevertheless, after joining Comp-U-Card, and especially in connection with Cendant's December 31, 1997, year-end close, Speaks took, or directed others to take, significant actions in furtherance of the scheme.   
+
+   On Friday, January 16, 1998, shortly after Speaks had sent Comp-U-Card's year-end reporting package to the CUC financial reporting personnel in Stamford, Connecticut, CUC's controller gave Speaks a page of handwritten instructions directing him to make a series of unsupported post-closing entries totaling approximately $100 million.  6    As part of those instructions, Speaks was directed to reverse approximately $19.6 million out of the Ideon reserve (a merger reserve established in connection with various acquisitions that CUC completed in 1996) and approximately $20.7 million out of the Cendant reserve (a merger reserve established in connection with the December 1997 merger of HFS and CUC).  To off-set these reversals, Speaks was directed to increase Comp-U-Card revenue accounts by $33.3 million and to decrease Comp-U-Card operating expense accounts by $7 million.  7    Speaks created ninety-two individual entries designed to effectuate the instructions.  The CUC controller had directed Speaks to back-date the entries, and Speaks gave the entries effective dates spread retroactively over October, November, and December of 1997.  The controller left to Speaks decisions about the particular Comp-U-Card revenue and expense accounts to be credited and the specific amounts of the individual entries.   
+
+   The CUC controller's handwritten instructions also directed Speaks to reverse an additional $48.4 million out of the Ideon reserve and to off-set those reversals by crediting CUC intercompany payable accounts with four different subsidiaries of CUC.  To implement the instructions, Speaks created an additional thirteen entries that Friday night, bringing the total number of fabricated entries to one hundred and five.  Speaks assigned the additional thirteen entries effective dates spread over the entire previous fiscal year, from February through December of 1997.  Speaks also created a four-page balance sheet analysis, to record the general ledger balances prior to the entries and to help him track the account balances after the entries had been recorded.   
+
+   On the morning of Saturday, January 17, Speaks had one of his employees key the one hundred and five unsupported journal entries into the general ledger.  Upon discovery that the book-keeping system would not allow back-dating past August, those entries assigned effective dates between February and July were modified to show effective dates from August through December.  As a result of this flurry of activity, $88.7 million had been reversed out of CUC merger reserves in a single weekend, and the Ideon reserve balance had been reduced to $479,000.  8    Comp-U-Card division operating income had been increased by $40.3 million at that point. 
+
+   On Tuesday, January 20, the CUC controller sent Speaks a one-page handwritten facsimile transmission with additional instructions.  The first part of those instructions directed Speaks to debit the newly created intercompany payables in an aggregate amount of $15.1 million, with the off-sets being credits to various Comp-U-Card revenue accounts.  This time the instructions set forth the specific revenue accounts to be credited.  The entries were to be back-dated, with effective dates spread over October, November, and December.  Speaks directed his staff to make the entries, and the entries were posted the next day.  With the additional $15.1 million, the January post-closing entries now had inflated Comp-U-Card division operating income for the fiscal year ended December 31, 1997, by $50.4 million.   
+
+   The January 20 facsimile also instructed Speaks to reverse an additional $17 million out of the Cendant reserve.  To off-set these reversals, Speaks was directed to credit CUC intercompany payable accounts with certain subsidiaries.  Speaks directed his staff to make these unsupported entries, and they were posted on January 21.  With the completion of those postings, Speaks and his staff, in a period of a few days, had created $65.4 million in CUC intercompany payables.  From those payables, $15.1 million had been reversed into Comp-U-Card operating income, leaving $50.3 million in intercompany payables remaining.  That $50.3 million also found its way into CUC's reported income for the fiscal year ended December 31, 1997, but the remaining steps in its journey to that destination were not effected by Speaks or by his staff.  9   
+
+   The original, January 16 handwritten instructions contained some additional directions for Speaks.  The most significant of these were directions to move $6.5 million of sales revenue from membership products whose revenues were recognized over an extended period of several months to a category of products whose revenues were recognized immediately.  Speaks was also directed to decrease the solicitation expenses for the immediate recognition membership products by $3 million.  Speaks understood the expense decrease to mean taking expenses that should have been recognized in the current year and moving them to the next year.  Speaks made the adjustments, thereby increasing Comp-U-Card operating income by more than $9 million.  In all, the January 1998 post-closing entries and membership sales adjustments had increased Comp-U-Card division operating income for the fiscal year ended December 31, 1997, by approximately $60 million. 
+
+   The January 1998 entries were unsupported.  They all materialized after the books were closed, and they all carried effective dates spread retroactively over prior months.  The aggregate amounts were large.  In some cases, the entries reversed merger reserves directly into revenues -- something not permissible under Generally Accepted Accounting Principles  ("GAAP").  Not only that, but, in some cases, the Comp-U-Card revenue accounts being credited with these large amounts were revenue accounts for some of Comp-U-Card's more insignificant membership product lines.  10    When the merger reserves were reversed into operating expense accounts, the entries were hardly more defensible.  11    Finally, if an issuer is able to ascertain that reserves were overstated and are, in fact, not needed, the proper accounting treatment is a specifically designated line item that discloses that the entry is a reversal of a reserve -- not hiding the reversal by putting it into operating income.  In short, the entries had no accounting rationale.   
+
+   Speaks, a certified public accountant, realized this.  When initially presented with the January 16 handwritten instructions, he noted to the CUC controller that it would be difficult to make such entries in a manner that did not stand out.  Speaks was skeptical.  Nevertheless, when the CUC controller gave him instructions, and some guidance, on how to make the improper entries, Speaks made them, or directed his staff to make them.  
+
+    2. The Membership Cancellation Reserve   
+
+   As controller of Comp-U-Card division after June of 1997, Speaks inherited, but then himself oversaw, a complex set of procedures used by CUC management to inflate income by using the membership cancellation reserve.  Certain Comp-U-Card membership products were processed through various financial institutions that billed their members' credit cards for new sales and charges related to the various membership products.  When Comp-U-Card recorded membership sales revenue from such a sale, it would allocate a percentage of the recorded revenue to cover estimated cancellations of the specific membership product being sold, as well as allocating a percentage to cover estimated rejects and chargebacks.  12    The result of these Comp-U-Card percentage allocations was the Comp-U-Card membership cancellation reserve.   
+
+   Over the years, CUC management had developed a policy of keeping rejects and cancellations off the Comp-U-Card general ledger during the last three months of each fiscal year.  Instead, during that quarter, the rejects and cancellations appeared only on cash account bank reconciliations compiled by the Comp-U-Card accounting personnel in Trumbull, Connecticut.  Because the rejects and cancellations for the final three months were not recorded against the membership cancellation reserve, the policy allowed CUC to hide the fact that the reserve was dramatically understated at each fiscal year-end.  13   
+
+   Holding rejects and cancellations off-books in the fourth quarter each year was just one step in an annual ritual that CUC used to exploit the membership cancellation reserve.  In the first three months of each ensuing fiscal year, the previously held rejects and cancellations were booked against the reserve.  Because the reserve was significantly understated, however, those bookings required simultaneous remedial entries designed to inflate the reserve.  Accordingly, at the same time CUC was booking the rejects and cancellations, the company also was creating fictitious accounts receivable and crediting the cancellation reserve.  Finally, as each fiscal year drew to a close, the annual cycle would begin to repeat itself:  the fictitious accounts receivable would be reversed and the company would begin to hold rejects and cancellations off its books.  This annual ritual allowed the company to avoid the charges needed to bring the cancellation reserve up to the proper amount.  For the fiscal year ended December 31, 1997, alone, these actions resulted in the company overstating income by $12 million.   
+
+  E.  DISCLOSURE AND ASSISTANCE   
+
+   In April 1998, Speaks took steps to disclose various improper CUC practices to Cendant officers who previously had been members of management at HFS.  He urged his supervisor to bring the practices to the attention of more senior management.  When that effort failed to bring results, Speaks took it upon himself to make the disclosure.  On April 9, 1998, Speaks drove to Parsippany, New Jersey and did just that.  The disclosure set in motion a rapid series of events leading to Cendant's April 15, 1998, announcement that it had discovered accounting irregularities at former CUC business units.  Subsequent to that announcement, Speaks assisted the Commission and other authorities in the investigation of accounting irregularities at CUC.   
+
+  F.  FALSE FILINGS AND STATEMENTS   
+
+   Between the company's December 31, 1997, fiscal year-end and the discovery of the fraudulent scheme by Cendant management in April 1998, the company filed with the Commission a false and misleading annual Report on Form 10-K and other false and misleading filings.  Those filings included, directly or by incorporation, financial statements that misrepresented the company's financial results, massively overstating its income from operations and its earnings.   
+
+  IV.  
+
+  A.  VIOLATIONS OF THE ANTIFRAUD PROVISIONS   
+
+   Section 10(b) of the Exchange Act and Rule 10b-5 thereunder prohibit a person, in connection with the purchase or sale of a security, from making an untrue statement of a material fact or from omitting to state a material fact necessary to make statements made, in light of the circumstances under which they were made, not misleading.  To violate Section 10(b) or Rule 10b-5, a defendant must act with scienter,  Aaron v. SEC , 446 U.S. 680, 695, 701-02 (1980), which the Supreme Court has defined as "a mental state embracing intent to deceive, manipulate, or defraud,"  Ernst & Ernst v. Hochfelder , 425 U.S. 185, 193 n.12 (1976).  Subsequent to the actions taken by Speaks and described above, between the company's December 31, 1997, fiscal year-end and the discovery of the fraudulent scheme by Cendant management in April 1998, the company violated the antifraud provisions by filing with the Commission filings that were materially misstated and that misrepresented the company's financial condition and results of operations.  14    During this period, the company's securities were listed and traded on the NYSE. 
+
+   Although Speaks was aware that certain CUC practices were improper, he nevertheless helped in carrying out those practices.  Those who assist such practices "cannot escape culpability by asserting that they acted as `good soldiers' and, thereby, rely upon the fact that the violative conduct was condoned, or even ordered, by their corporate superiors."   In the Matter of Benny Aguirre ,   Exchange Act Release No. 24535 (June 2, 1987),  quoted in In the Matter of Collins Indus., Inc. , Exchange Act Release No. 34934 (Nov. 3, 1994);  see   In the Matter of Thomas C. Runge ,    Exchange Act Release No. 23061 (Mar. 26, 1986);  see also   SEC v. Kalvex Inc. , 425 F. Supp. 310, 315 (S.D.N.Y. 1975) ("just `following orders' " does not excuse such actions (citing  SEC v. Pearson , 426 F.2d 1339 (10th Cir. 1970))).  By his conduct described above, Speaks caused, and willfully aided and abetted, the company's violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. 
+
+  B.  VIOLATIONS OF THE EXCHANGE ACT REPORTING AND 
+RECORD-KEEPING PROVISIONS    
+
+   Section 13(a) of the Exchange Act and Rule 13a-1 thereunder require issuers with securities registered under Section 12 of the Exchange Act to file annual reports with the Commission and to keep this information current.  The obligation to file such reports embodies the requirement that they be true and correct.   See ,  e . g .,  SEC v. Savoy Indus., Inc. , 587 F.2d 1149, 1165 (D.C. Cir. 1978),  cert. denied , 440 U.S. 913 (1979).  Exchange Act Rule 12b-20 further requires the inclusion of any additional material information that is necessary to make required statements, in light of the circumstances under which they were made, not misleading.  Information regarding the financial condition of a company is presumptively material.   SEC v. Blavin , 760 F.2d 706, 711 (6th Cir. 1985).   
+
+   As discussed above, between the company's December 31, 1997, fiscal year-end and the discovery of the fraudulent scheme by Cendant management in April 1998, the company filed false and misleading filings with the Commission that misrepresented the financial results of the company, overstating operating income and earnings and failing to disclose that the financial results were falsely represented.  By his conduct described above, Speaks caused, and willfully aided and abetted, the company's violations of Section 13(a) of the Exchange Act and Rules 13a-1 and 12b-20 thereunder. 
+
+   Section 13(b)(2)(A) of the Exchange Act requires Section 12 registrants to make and keep books, records, and accounts that accurately and fairly reflect the transactions and dispositions of their assets.  Section 13(b)(5) of the Exchange Act provides that no person shall knowingly falsify any such book, record, or account or circumvent internal controls.  Rule 13b2-1 also prohibits the falsification of any book, record, or account subject to Section 13(b)(2)(A).   
+
+   Subsequent to the actions taken by Speaks and described above, between the company's December 31, 1997, fiscal year-end and the discovery of the fraudulent scheme by Cendant management in April 1998, the company's books and records reflecting the transactions and dispositions of its assets were not merely inaccurate, they were intentionally falsified.  Based on the conduct described above, Speaks willfully violated Section 13(b)(5) of the Exchange Act and Rule 13b2-1 thereunder, and caused, and willfully aided and abetted, the company's violations of Section 13(b)(2)(A) of the Exchange Act.   
+
+  V.  
+
+   Based on the foregoing, the Commission finds that Speaks (a) willfully violated Section 13(b)(5) of the Exchange Act and Rule 13b2-1 promulgated thereunder; and (b) caused, and willfully aided and abetted, the company's violations of Sections 10(b), 13(a), and 13(b)(2)(A) of the Exchange Act, and Rules 10b-5, 12b-20, and 13a-1 promulgated thereunder. 
+
+  VI.  
+
+   In view of the foregoing, the Commission deems it appropriate to accept Speaks' Offer and to impose the sanctions agreed to therein.  In determining to accept the Offer, the Commission considered remedial acts promptly undertaken by Speaks and cooperation afforded the Commission and other authorities.   
+
+   Accordingly,  IT IS HEREBY ORDERED  that 
+
+   A. pursuant to Section 21C of the Exchange Act, Respondent cease and desist from violating, and from causing future violations of, Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(5) of the Exchange Act, and Rules 10b-5, 12b-20, 13a-1, and 13b2-1 promulgated thereunder; and  
+
+   B. pursuant to Rule 102(e) of the Commission's Rules of Practice 
+
+     1. Respondent be denied the privilege of appearing or practicing before the Commission as an accountant. 
+
+     2. After three years from the date of the Order, Respondent may request that the Commission consider his reinstatement by submitting an application (attention: Office of the Chief Accountant) to resume appearing or practicing before the Commission as: 
+
+             a. a preparer or reviewer, or a person responsible for the preparation or review, of any public company's financial statements that are filed with the Commission.  Such an application must satisfy the Commission that Respondent's work in his practice before the Commission will be reviewed either by the independent audit committee of the public company for which he works or in some other acceptable manner, as long as he practices before the Commission in this capacity; and/or 
+
+             b. an independent accountant.  Such an application must satisfy the Commission that:  (a) Respondent, or the firm with which he is associated, is a member of the SEC Practice Section of the American Institute of Certified Public Accountants Division for CPA Firms ("SEC Practice Section"); (b) Respondent, or the firm, has received an unqualified report relating to his, or the firm's, most recent peer review conducted in accordance with the guidelines adopted by the SEC Practice Section; and (c) As long as Respondent appears or practices before the Commission as an independent accountant he will remain either a member of the SEC Practice Section or associated with a member firm of the SEC Practice Section, and will comply with all applicable SEC Practice Section requirements, including all requirements for periodic peer reviews, concurring partner reviews, and continuing professional education. 
+
+     3. The Commission's review of an application by Respondent to resume appearing or practicing before the Commission may include consideration of, in addition to the matters referenced above, any other matters relating to Respondent's character, integrity, professional conduct, or qualifications to appear or practice before the Commission. 
+
+   By the Commission. 
+
+                 Jonathan G. Katz
+                 Secretary 
+  Footnotes 
+
+
+   1     Paragraph 1 of Rule 102(e)(1) provides, in relevant part, that:
+
+  The Commission may . . . deny, temporarily or permanently, the privilege of appearing or practicing before it in any way to any person who is found by the Commission after notice and opportunity for hearing in the matter: . . . (ii) [t]o be lacking in character or integrity or to have engaged in unethical or improper professional conduct; or (iii) [t]o have willfully violated, or willfully aided and abetted the violation of any provision of the Federal securities laws or the rules and regulations thereunder. 
+
+   2     As part of the settlement of these proceedings, Respondent has also agreed to settle a civil action by consenting to a judgment ordering Respondent to pay a $25,000 civil money penalty based on the conduct described in this Order. 
+
+   3     The Commission's findings herein are made pursuant to Respondent's Offer and are not binding upon any other person or entity in these or any other proceedings. 
+
+   4     CUC's fiscal year ended on January 31.  After the December 17, 1997, merger, Cendant adopted a fiscal year ending December 31. 
+
+   5     Due to a variety of factors, such as changes in accounting methodology or comparability issues related to acquisitions or to dispositions of discontinued business operations, income impact figures used in this Order may not necessarily tie to figures set forth in CUC and Cendant financial statements included in filings with the Commission.   
+
+   6     For purposes of this Order, "post-closing journal entries" means entries made after a reporting period had ended, with effective dates spread retroactively over prior weeks or months. 
+
+   7     Because the Comp-U-Card division general ledger served as the general ledger for CUC, entries made at Comp-U-Card could reverse the largest CUC merger reserve accounts directly into income accounts at Comp-U-Card. 
+
+   8     This result was consistent with the CUC controller's handwritten instructions, which concluded with a statement that, upon posting of the entries, the Ideon reserve should have "about $500,000 left in Balance." 
+
+   9     The remaining steps were accomplished by financial reporting personnel at CUC corporate headquarters in Stamford and by various divisional controllers at divisions other than Comp-U-Card.   
+
+   10     The CUC controller had directed Speaks to make the credits to less noticeable, relatively insignificant accounts.  
+
+   11     GAAP permits a debit to a merger reserve, with an off-setting entry to an operating expense account, in the event that a cost that should have been charged against the reserve instead had been mistakenly treated as an operating expense.  For such events to have been the justification for the January 1998 entries sent to Speaks, it would have had to have been the case that $7 million worth of such incorrect previous charges had occurred, putting to one side the facts that no support was being provided and that the decisions as to which specific accounts were being credited were being left to Speaks.  If these charges were due to mistakes and exceptions, then, at CUC, exceptions were well on their way to becoming the norm. 
+
+   12     Rejects resulted when the credit card to be charged was over its limit, closed, or reported as lost or stolen.  Chargebacks resulted when a credit card holder disputed specific charges related to a particular membership program.   
+
+   13     Failing to book cancellations and rejects at each fiscal year-end had the added effect of overstating the company's cash position on its year-end balance sheet.  As a result, at the fiscal year-end December 31, 1997, Cendant had an approximate $100 million overstatement in cash on its balance sheet for the year then ended.   
+
+   14     A fact is material if there is a substantial likelihood that a reasonable investor would consider the information to be important.   Basic Inc. v. Levinson , 485 U.S. 224, 231-32 (1988).  Information regarding a company's income is among the most important information for making an investment decision. 
+
+
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1275.txt b/raw/aaer/2000/AAER-1275.txt
new file mode 100644
index 0000000000000000000000000000000000000000..89a6d5537c72e005213b55d6ff2752fed9bd34ce
--- /dev/null
+++ b/raw/aaer/2000/AAER-1275.txt
@@ -0,0 +1,1585 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Mary Sattler Polverari, C.P.A. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359491","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Mary Sattler Polverari, C.P.A.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Mary Sattler Polverari, C.P.A.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  42936 / June 14, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1275 / June 14, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No.  3-10228
+
+
+      
+ In the Matter of 
+   
+MARY SATTLER POLVERARI, 
+C.P.A.,   
+  Respondent.   
+   
+
+    : : : : : : : :   
+   
+   
+ORDER INSTITUTING PUBLIC 
+ADMINISTRATIVE PROCEEDINGS 
+PURSUANT TO SECTION 21C OF THE  
+SECURITIES EXCHANGE ACT OF 1934, 
+AND RULE 102(e) OF THE COMMISSION'S 
+RULES OF PRACTICE, MAKING FINDINGS, 
+AND IMPOSING SANCTIONS AND  
+CEASE-AND-DESIST ORDER
+      I.  
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate to institute public administrative proceedings pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 102(e) of the Commission's Rules of Practice  1   against Mary Sattler Polverari ("Polverari" or "Respondent"), a certified public accountant. 
+
+  II.  
+
+   In anticipation of the institution of these administrative proceedings, Polverari has submitted an Offer of Settlement ("Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings, and any other proceedings brought by or on behalf of the Commission, or in which the Commission is a party,  2   without admitting or denying the findings set forth below, except as to jurisdiction of the Commission over her and over the subject matter of these proceedings, which Respondent admits, Respondent consents to the entry of this Order Instituting Public Administrative Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934 and Rule 102(e) of the Commission's Rules of Practice, Making Findings, and Imposing Sanctions and Cease-and-Desist Order ("Order") set forth below. 
+
+   Accordingly, it is ordered that proceedings pursuant to Section 21C of the Exchange Act and Rule 102(e) of the Commission's Rules of Practice be, and hereby are, instituted. 
+
+  III.  
+
+   FACTS   
+
+   The Commission makes the following findings:  3   
+
+  A.  RESPONDENT   
+
+ Mary Sattler Polverari, C.P.A., age 29, was hired as Supervisor of Financial Reporting at CUC International Inc. ("CUC") in December 1995 and worked in the company's financial reporting operations at corporate headquarters in Stamford, Connecticut.  4    In the Fall of 1997, Polverari was promoted to Manager of Financial Reporting.  Polverari continued to hold that title after CUC became Cendant Corporation ("Cendant") in December 1997.  Polverari is licensed as a certified public accountant in New York and resides in Brewster, New York. 
+
+  B.  OTHER RELEVANT ENTITIES   
+
+ HFS Incorporated ("HFS") was a Delaware corporation that had its headquarters in Parsippany, New Jersey, and was principally a controller of franchise brand names in the hotel, real estate brokerage, and car rental businesses.  Its securities were registered pursuant to Section 12(b) of the Exchange Act and traded on the New York Stock Exchange ("NYSE").   
+
+ CUC was a Delaware corporation that had its headquarters in Stamford, Connecticut, and was principally engaged in membership-based consumer services, such as auto, dining, shopping, and travel "clubs."  CUC's securities also were registered pursuant to Section 12(b) and traded on the NYSE.   
+
+ Cendant Corporation, a Delaware corporation with its headquarters in New York City, was created through the December 17, 1997, merger of HFS and CUC.  Cendant provides certain membership-based and Internet-related consumer services and controls franchise brand names in the hotel, residential real estate brokerage, car rental, and tax preparation businesses.  For corporate law purposes, Cendant is CUC.  Pursuant to the Agreement and Plan of Merger between CUC and HFS, on December 17, 1997, HFS was merged with and into CUC, with CUC continuing as the surviving corporation and changing its name to Cendant Corporation.  As of March 1, 2000, Cendant's common stock, Income PRIDES, and Growth PRIDES were registered pursuant to Section 12(b) of the Exchange Act and traded on the NYSE.  Cendant's 6.45% Trust Originated Preferred Securities, 7 3/4% Notes due 2003, and 3% Convertible Subordinate Notes due 2002 were registered pursuant to Section 12(g) of the Exchange Act. 
+
+  C.  THE SCHEME   
+
+   Beginning in at least 1985, certain members of CUC's senior management implemented a scheme designed to ensure that CUC always met the financial results anticipated by Wall Street analysts.  The CUC managers utilized a variety of means to achieve their goals.  In part, CUC management met it goals by manipulating recognition of the company's membership sales revenue.  Management also improperly utilized two liability accounts related to membership sales, consistently maintaining inadequate balances in the accounts and on occasion reversing the accounts directly into operating income.  In addition, the CUC managers intentionally overstated merger and purchase reserves and subsequently reversed those reserves directly into operating expenses and revenues.  Finally, management improperly wrote off assets -- including assets that were unimpaired -- and improperly charged the write-offs against its merger reserves.  By manipulating the timing of the write-offs and by improperly determining the nature of the charges incurred, management used the write-offs to inflate operating income at CUC.   
+
+ CUC senior management supervised the scheme over the course of each fiscal year.  Beginning in at least 1988, management regularly made certain aggregate changes to CUC's reported quarterly financial results.  Accordingly, at the end of each of the company's first three fiscal quarters, senior managers directed mid-level financial reporting managers at CUC corporate headquarters to add whatever amounts were needed in order to bring CUC's quarterly income up to analysts' expectations.  Thus, for each of the first three quarters of a CUC fiscal year, the managers artificially inflated revenues and decreased operating expenses.  In conjunction with these income statement changes, the managers also cosmetically altered certain CUC balance sheet items. 
+
+   At the end of each fiscal year, the CUC managers implementing the scheme inflated the company's annual results as recorded on its books and records, so that the books and records would be consistent with the financial results already released and so that CUC's reported annual income would, in fact, meet the expectations of Wall Street analysts.  As the scheme progressed over the course of several years, larger and larger year-end adjustments were required.  The scheme added more than $500 million to pre-tax operating income during the fiscal years ended January 31, 1996; January 31, 1997; and December 31, 1997.  5   
+
+  D.  POLVERARI'S INVOLVEMENT   
+
+  1.  The Quarterly Top-Side Adjustments  
+
+   Polverari's principal responsibilities at CUC involved creating consolidating financial reports for all CUC business units, doing balance sheet and income statement consolidations, and performing intercompany account reconciliations.  Each month, each of the CUC business units would submit a reporting package to the financial reporting personnel in Stamford, Connecticut.  As part of her duties, Polverari took those reporting packages and, using an electronic spreadsheet, compiled a monthly consolidating report showing the financial results for every business unit.  At the end of each of the company's first three fiscal quarters each year, Polverari would follow similar procedures to generate a quarterly consolidating report.  6    After generating a quarterly consolidating report, Polverari would give it to her supervisors. 
+
+ The process never ended there.  Instead, Polverari would receive back from her supervisors written or oral instructions detailing aggregate adjustments that Polverari was to make to various line items in the quarterly consolidating report.  Typically, the instructions included adjustments increasing revenue by a certain amount and decreasing particular expense line items by certain amounts.  The adjustments were made almost entirely in that column of the spreadsheet devoted to the results of CUC's largest division, the Comp-U-Card division.  The changes always had the effect of increasing CUC earnings and were never accompanied by support.  The adjustments were entirely top-side adjustments.  That is, the adjustments were simply entered into Polverari's spreadsheet at Stamford -- no journal entries were created, no entries were made to CUC's general ledger, and the adjustments were not carried down to the books and records of Comp-U-Card or any of the company's other divisions.  7   
+
+ At each of those quarters, Polverari made the adjustments detailed in her instructions.  She then printed a revised quarterly consolidating report and again gave it to her supervisors.  The revised report usually resulted in a second wave of instructions from her supervisors.  The additional instructions fine-tuned the report, directing Polverari to make additional, usually smaller, adjustments to various line items.  In addition to the instructions affecting profit-and-loss line items, Polverari would receive similar, unsupported instructions to make adjustments to various line items in the quarterly consolidated balance sheet.   
+
+ Polverari was never given any accounting rationale for the quarterly top-side adjustments she was instructed to make.  Instead, her supervisors told her that CUC's chief financial officer had generated the adjustments to inflate CUC's quarterly results so that the results would meet the earnings expectations of Wall Street analysts.  The supervisors also told her that some of the adjustments were created by the chief financial officer simply to make cosmetic adjustments in the income statement and balance sheet.  For example, she was told that the chief financial officer had specific percentage targets for each major expense category, which required that each of the categories be set at approximately the same percentage of revenues as that particular category had held in the previous quarter.  Polverari was also told that the chief financial officer made the balance sheet adjustments to ensure that items such as receivables and cash were at levels he thought desirable.   
+
+ For each of the first three quarters of a CUC fiscal year, once all the instructed adjustments had been made, Polverari used the spreadsheet to generate quarterly consolidated financial statements for CUC.  Those financial statements were set forth in the summary format used in CUC's quarterly Reports on Form 10-Q and in its quarterly earnings press releases.  As a result of the unsupported quarterly top-side adjustments Polverari had entered, therefore, for each of those quarters, CUC's reported quarterly results matched the consensus quarterly expectations of analysts on Wall Street.  The adjustments also resulted, however, in CUC's quarterly Reports on Form 10-Q and its quarterly earnings press releases being largely works of fiction.  A gap existed between CUC's reported quarterly results and its actual results of operations.  That gap grew from quarter to quarter and from one fiscal year to the next.  The quarterly top-side alterations aggregated $31 million for CUC's fiscal year ended January 31, 1996; an additional $87 million for its fiscal year ended January 31, 1997; and another $176 million for Cendant's fiscal year ended December 31, 1997.  8   
+
+  2.  The 1998 Entries to Retained Earnings Accounts   
+
+ At each fiscal year-end, CUC management had to make certain that journal entries were made raising CUC's income to the annual earnings levels Wall Street analysts expected.  Moreover, since most of the artificial CUC income created during the year had simply been added top-side at the quarters, and did not appear on CUC's books, corrective measures were needed prior to the company being audited by its outside auditors.  In connection with Cendant's fiscal year ended December 31, 1997, Polverari played a role in these year-end adjustments as well.   
+
+ In January 1998, Cendant managers formerly associated with CUC directed approximately $115 million in unsupported post-closing journal entries reversing the company's merger reserves.  9    The managers directed that more than $50 million of these reversals were to be off-set by credits to intercompany payable accounts with various Cendant Membership Services subsidiaries.  (After the December 1997 merger, the former CUC business units were known as Cendant Membership Services or CMS.)  Ultimately, the entire $50 million of intercompany payables was used to inflate Cendant's reported income for the fiscal year ended December 31, 1997.  10    Polverari was instructed by the Cendant Membership Services controller to increase revenues of three CMS subsidiaries by a total of $34 million by making top-side adjustments in her spreadsheet, thereby increasing income in the consolidated financial reports.  Polverari made top-side adjustments decreasing the intercompany payables by $34 million and increasing the revenues of the CMS subsidiaries.  Then, on April 6, 1998, after Cendant's annual report incorporating its annual financial statements had been filed, Polverari sent a series of memoranda to financial reporting officers of the affected subsidiaries.  The memoranda, among other things, directed the financial reporting officers to make post-closing entries debiting their respective intercompany receivable accounts with CMS corporate and crediting their retained earnings accounts.  Polverari directed the subsidiaries to give the entries March 1998 effective dates and stated that the entries that "would normally be charged to the P&L can be charged directly to Retained Earnings to avoid opening last year's books."   
+
+  E.  FALSE FILINGS AND STATEMENTS   
+
+ Between Polverari's arrival at CUC in December 1995 and the discovery of the fraudulent scheme by Cendant management in April 1998, CUC and Cendant filed with the Commission false and misleading periodic reports and other filings.  Those reports and filings included, directly or by incorporation, financial statements that misrepresented the companies' financial conditions and results of operations, massively overstating their income and their earnings.   
+
+  IV.  
+
+  A.  VIOLATIONS OF THE ANTIFRAUD PROVISIONS   
+
+   Section 10(b) of the Exchange Act and Rule 10b-5 thereunder prohibit a person, in connection with the purchase or sale of a security, from making an untrue statement of a material fact or from omitting to state a material fact necessary to make statements made, in light of the circumstances under which they were made, not misleading.  To violate Section 10(b) or Rule 10b-5, a defendant must act with scienter,  Aaron v. SEC , 446 U.S. 680, 695, 701-02 (1980), which the Supreme Court has defined as "a mental state embracing intent to deceive, manipulate, or defraud,"  Ernst & Ernst v. Hochfelder , 425 U.S. 185, 193 n.12 (1976).  Between Polverari's arrival at CUC in December 1995 and the discovery of the fraudulent scheme by Cendant management in April 1998, CUC and Cendant violated the antifraud provisions by filing with the Commission and releasing to the public periodic reports and filings that were materially misstated and that misrepresented the companies' financial conditions and results of operations.  11   
+
+   Although Polverari was aware that certain CUC practices were improper, she nevertheless helped in carrying out those practices.  Those who assist such practices "cannot escape culpability by asserting that they acted as `good soldiers' and, thereby, rely upon the fact that the violative conduct was condoned, or even ordered, by their corporate superiors."   In the Matter of Benny Aguirre ,   Exchange Act Release No. 24535 (June 2, 1987),  quoted in In the Matter of Collins Indus., Inc. , Exchange Act Release No. 34934 (Nov. 3, 1994);  see   In the Matter of Thomas C. Runge ,    Exchange Act Release No. 23061 (Mar. 26, 1986);  see also   SEC v. Kalvex Inc. , 425 F. Supp. 310, 315 (S.D.N.Y. 1975) ("just `following orders' " does not excuse such actions (citing  SEC v. Pearson , 426 F.2d 1339 (10th Cir. 1970))).  Based on the conduct described above, Polverari caused, and willfully aided and abetted, the companies' violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. 
+
+  B.  VIOLATIONS OF THE EXCHANGE ACT REPORTING AND RECORD-KEEPING PROVISIONS   
+
+   Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder require issuers with securities registered under Section 12 of the Exchange Act to file annual and quarterly reports with the Commission and to keep this information current.  The obligation to file such reports embodies the requirement that they be true and correct.   See ,  e . g .,  SEC v. Savoy Indus., Inc. , 587 F.2d 1149, 1165 (D.C. Cir. 1978),  cert. denied , 440 U.S. 913 (1979).  Exchange Act Rule 12b-20 further requires the inclusion of any additional material information that is necessary to make required statements, in light of the circumstances under which they were made, not misleading.  Information regarding the financial condition of a company is presumptively material.   SEC v. Blavin , 760 F.2d 706, 711 (6th Cir. 1985).   
+
+   As discussed above, between December 1995 and the discovery of the fraudulent scheme by Cendant management in April 1998, CUC and Cendant filed false and misleading periodic reports with the Commission that misrepresented their financial results, overstating operating income and earnings and failing to disclose that the financial results were falsely represented.  Based on the conduct described above, Polverari caused, and willfully aided and abetted, the companies' violations of Section 13(a) of the Exchange Act and Rules 13a-1, 13a-13, and 12b-20 thereunder. 
+
+   Section 13(b)(2)(A) of the Exchange Act requires Section 12 registrants to make and keep books, records, and accounts that accurately and fairly reflect the transactions and dispositions of their assets.  Section 13(b)(5) of the Exchange Act provides that no person shall knowingly falsify any such book, record, or account or circumvent internal controls.  Rule 13b2-1 also prohibits the falsification of any book, record, or account subject to Section 13(b)(2)(A).   
+
+   As a result of the conduct described above, between December 1995 and the discovery of the fraudulent scheme by Cendant management in April 1998, the companies' books and records reflecting the transactions and dispositions of their assets were not merely inaccurate, they were intentionally falsified.  Based on the conduct described above, Polverari willfully violated Section 13(b)(5) of the Exchange Act and Rule 13b2-1 thereunder, and caused, and willfully aided and abetted, the companies' violations of Section 13(b)(2)(A) of the Exchange Act.   
+
+  V.  
+
+   Based on the foregoing, the Commission finds that Polverari (a) willfully violated Section 13(b)(5) of the Exchange Act and Rule 13b2-1 promulgated thereunder; and (b) caused, and willfully aided and abetted, CUC's and Cendant's violations of Sections 10(b), 13(a), and 13(b)(2)(A) of the Exchange Act, and Rules 10b-5, 12b-20, 13a-1, and 13a-13 promulgated thereunder. 
+
+  VI.  
+
+   In view of the foregoing, the Commission deems it appropriate to accept Polverari's Offer and to impose the sanctions agreed to therein.  In determining to accept the Offer, the Commission considered remedial acts undertaken by Polverari and cooperation afforded the Commission and other authorities.   
+
+   Accordingly,  IT IS HEREBY ORDERED  that 
+
+   A. pursuant to Section 21C of the Exchange Act, Respondent cease and desist from violating, and from causing future violations of, Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(5) of the Exchange Act, and Rules 10b-5, 12b-20, 13a-1, 13a-13, and 13b2-1 promulgated thereunder; and  
+
+   B. pursuant to Rule 102(e) of the Commission's Rules of Practice 
+
+   1. Respondent be denied the privilege of appearing or practicing before the Commission as an accountant. 
+
+     2. After three years from the date of the Order, Respondent may request that the Commission consider her reinstatement by submitting an application (attention: Office of the Chief Accountant) to resume appearing or practicing before the Commission as: 
+
+       a. a preparer or reviewer, or a person responsible for the preparation or review, of any public company's financial statements that are filed with the Commission.  Such an application must satisfy the Commission that Respondent's work in her practice before the Commission will be reviewed either by the independent audit committee of the public company for which she works or in some other acceptable manner, as long as she practices before the Commission in this capacity; and/or 
+
+       b. an independent accountant.  Such an application must satisfy the Commission that:  (a) Respondent, or the firm with which she is associated, is a member of the SEC Practice Section of the American Institute of Certified Public Accountants Division for CPA Firms ("SEC Practice Section"); (b) Respondent, or the firm, has received an unqualified report relating to her, or the firm's, most recent peer review conducted in accordance with the guidelines adopted by the SEC Practice Section; and (c) As long as Respondent appears or practices before the Commission as an independent accountant she will remain either a member of the SEC Practice Section or associated with a member firm of the SEC Practice Section, and will comply with all applicable SEC Practice Section requirements, including all requirements for periodic peer reviews, concurring partner reviews, and continuing professional education. 
+
+     3. The Commission's review of an application by Respondent to resume appearing or practicing before the Commission may include consideration of, in addition to the matters referenced above, any other matters relating to Respondent's character, integrity, professional conduct, or qualifications to appear or practice before the Commission. 
+
+   By the Commission. 
+
+                 Jonathan G. Katz
+                 Secretary 
+  Footnotes 
+
+
+
+   1     Paragraph 1 of Rule 102(e)(1) provides, in relevant part, that:
+
+  The Commission may . . . deny, temporarily or permanently, the privilege of appearing or practicing before it in any way to any person who is found by the Commission after notice and opportunity for hearing in the matter: . . . (ii) [t]o be lacking in character or integrity or to have engaged in unethical or improper professional conduct; or (iii) [t]o have willfully violated, or willfully aided and abetted the violation of any provision of the Federal securities laws or the rules and regulations thereunder. 
+
+   2     As part of the settlement of these proceedings, Respondent has also agreed to settle a civil action by consenting to a judgment ordering Respondent to pay a $25,000 civil money penalty based on the conduct described in this Order. 
+
+   3     The Commission's findings herein are made pursuant to Respondent's Offer and are not binding upon any other person or entity in these or any other proceedings. 
+
+   4     At the time of Respondent's conduct discussed herein, Respondent's name was Mary Sattler.  Her name subsequently changed to Mary Sattler Polverari. 
+
+   5     CUC's fiscal year ended on January 31.  After the December 17, 1997, merger, Cendant adopted a fiscal year ending December 31. 
+
+   6     At CUC, the monthly consolidating reports were considered far less important than the quarterly consolidating reports.  Accordingly, Polverari did not enter the numbers for the Comp-U-Card division, CUC's largest division, into her spreadsheet every month -- on occasion she would skip that process and simply make sure that all Comp-U-Card results were entered into the spreadsheet in time for the quarterly consolidating report.   
+
+   7     To make a specific adjustment, Polverari would go into the appropriate cell of the electronic spreadsheet and manually enter the adjustment she had been instructed to make.  For example, if revenues were to be increased by $50 million, Polverari would go to the cell for Comp-U-Card membership fees revenue for the last month of the quarter and enter "+50,000."  (The spreadsheet recorded amounts in thousands.)  By making the adjustments in this way, rather than just entering new aggregate numbers into the affected cells, it was possible to go into the individual cells in the spreadsheet and determine what changes had been made and which specific cells had been altered.   
+
+   8     Due to a variety of factors, such as changes in accounting methodology or comparability issues related to acquisitions or to dispositions of discontinued business operations, income impact figures used in this Order may not necessarily tie to figures set forth in CUC and Cendant financial statements included in filings with the Commission.   
+
+   9     For purposes of this Order, "post-closing journal entries" means entries made after a reporting period had ended, with effective dates spread retroactively over prior weeks or months. 
+
+   10     Actually, the entire $115 million in January 1998 merger reversals eventually was used, through various means, to inflate Cendant income for the fiscal year ended December 31, 1997.   
+
+   11     A fact is material if there is a substantial likelihood that a reasonable investor would consider the information to be important.   Basic Inc. v. Levinson , 485 U.S. 224, 231-32 (1988).  Information regarding a company's income is among the most important information for making an investment decision. 
+
+
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1277.txt b/raw/aaer/2000/AAER-1277.txt
new file mode 100644
index 0000000000000000000000000000000000000000..b4e14c230f36034389def13d5f0f0952603b063e
--- /dev/null
+++ b/raw/aaer/2000/AAER-1277.txt
@@ -0,0 +1,1615 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Waste Management, Inc. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359456","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Waste Management, Inc.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Waste Management, Inc.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ Securities Exchange Act of 1934
+ Release No.  42968 / June 21, 2000
+
+  Accounting and Auditing Enforcement
+ Release No.  1277 / June 21, 2000
+
+  Administrative Proceeding
+ File No. 3-10238
+
+  
+
+     ___________________________________           :        In the Matter of        :         :  ORDER INSTITUTING         :  PROCEEDINGS PURSUANT       WASTE MANAGEMENT, INC.      :  TO SECTION 21C OF THE         :  SECURITIES EXCHANGE         :  ACT OF 1934, MAKING         :  FINDINGS, AND IMPOSING         : A CEASE-AND-DESIST ORDER       ____________________________________    :       I. 
+
+  The Commission deems it appropriate that public cease-and-desist proceedings be, and hereby are, instituted against Waste Management, Inc. ("WMI" or the "company") pursuant to Section 21C of the Securities Exchange Act of 1934 (the "Exchange Act").
+
+   II. 
+
+  In anticipation of the institution of these administrative proceedings, WMI has submitted an Offer of Settlement, which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceedings brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings set forth herein, except as to the Commission's jurisdiction over it, which is admitted, WMI consents to the entry of the findings and to the issuance of this Order Instituting Proceedings Pursuant To Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing A Cease-and-Desist Order ("Order").
+
+     III. 
+
+     BACKGROUND 
+
+  On the basis of this Order and WMI's Offer of Settlement, the Commission finds  1  :
+
+  A. RESPONDENT
+
+  WMI, headquartered in Houston, Texas, is a holding company whose primary subsidiaries and operating divisions are engaged in the business of collecting, transporting and disposing of solid waste for residential, municipal, commercial and industrial customers.  WMI was formerly known as USA Waste Service, Inc.("USA").  The company changed its name after acquiring the much larger Waste Management, Inc. ("Old Waste") in July 1998.   USA's management became the predominant management for the combined entity.  WMI's stock is registered with the Commission pursuant to 12(b) of the Exchange Act and is listed on the New York Stock Exchange.  
+
+  B. FACTS
+
+  1.  Summary 
+
+  This matter involves WMI's  violations of the antifraud, books and records and internal controls provisions of the federal securities laws in 1999.  
+
+  WMI violated the antifraud provisions in  June 1999 when its management publicly projected results for the company's second quarter.  The June forecast was a reiteration of second quarter projections made earlier in the year.    Although the earlier projections may have had a reasonable basis when first disseminated, by at least the time when the reiteration occurred, WMI  was aware of significant adverse trends in its business which made its continued public support of  its previously announced forecasts unreasonable. 
+
+  WMI's violation of the books and records and internal control provisions of the securities laws in 1999 arose from the  failure to implement and maintain effective and accurate billing, accounting and management information systems as it proceeded through 1999 B the first full year following the July 1998 merger of Old Waste and USA.   WMI's management information system failures, which became increasingly evident as time went on,  made WMI's June earnings forecast even more unreasonable since it should have been clear to the company that it simply could not generate information from which responsible forecasts could be made.   
+
+  On July 6, 1999, after the close of the market,  the company announced that it anticipated a revenue shortfall versus its internal budget of approximately $250 million in the second quarter ended June 30,1999.  On July 7, 1999,  the company's share price went  from $53.56 to $33.94 per share and continued to decline as the market digested subsequent announcements that supplied additional detail to the July 6 disclosure.  By August 4, after the company announced its second quarter operating earnings,  the company's share price had retreated to $22.25 per share.
+
+  In the period surrounding the announcement and completion of the merger, USA and Old Waste had publicly estimated that the combined entity would earn from $2.90 to $3.05 per share in 1999.  These initial estimates were based on the merger analysis conducted by investment bankers retained to advise USA and Old Waste.  2   By the first quarter of 1999, WMI senior management had begun to accompany these annual projections with quarterly earnings per share estimates, including a projected range of $.78 to $.81 for the second quarter of 1999.  
+
+  In the aftermath of the merger, the smaller, more decentralized USA had to assimilate the larger and more centralized Old Waste.  One of the major assumptions underlying WMI's  second quarter projections was the successful integration of the two companies' operations.  In particular, the Old Waste operating entities were expected to convert  successfully to the USA accounting, billing and management information systems.  A further critical assumption was the ability of the combined entity to realize substantial savings through synergies.  In particular WMI hoped to realize economies by consolidating facilities and routes, by increasing the use of company-owned disposal sites  instead of using higher-priced sites owned by others and by implementing a new strategy of increasing prices in certain areas of its operations.
+
+  Various measures of the company's operating results for the third and fourth quarters of 1998 and the first quarter of 1999 were consistent with the assumptions that formed the basis of the company's publicly stated projections.  As the second quarter of 1999 progressed, however, the company began to suffer severe setbacks.  The systems conversion did not progress as planned.  Further,  the company was not able to raise prices to the extent it had planned and it had incurred costs resulting from the merger.  On July 6, the setbacks which the company had suffered led to an announcement that the company could not meet its earnings forecasts.  
+
+  The adverse circumstances that confronted WMI did not emerge fully formed at once.  Instead, as is often the case, the news filtered in over time.  In addition, the company's materially inadequate management information systems made it even more difficult for the company to measure its true performance.   Nevertheless, by at least June 9, 1999,  WMI had the following information at its disposal :
+
+         internal estimates from senior field managers showing earnings shortfalls in the company's North American solid waste business which had been generated by the end of May
+
+         indications in early June that certain of the price increases implemented by the company at the end of the first quarter of 1999 were being rolled back,
+
+         increasing accounts receivable balances due to delays and other difficulties in the conversion of billing systems and, 
+
+         finally, decreases in the volumes of solid waste entering the company's domestic and Canadian landfills.
+   Further, the company could not generate accurate and timely financial performance data due to significant deficiencies in its accounting, billing and management information systems.  
+
+  Under these circumstances, WMI knew or was reckless in not knowing that the projections provided to the market on June 9, 1999 for its second quarter lacked a reasonable basis.
+
+  As a result of the foregoing, WMI violated the antifraud, books and records, and internal controls provisions of the Exchange Act.
+
+    2.  The USA/Old Waste Merger 
+
+  USA and Old Waste entered into a merger agreement on March 10, 1998.   The Old Waste press release announcing the merger stated that the companies anticipated that the combined entity would realize synergies as a result of the merger of approximately $800 million and forecast 1999 earnings per share in a range of $2.90 to $3.05.  USA's press release provided the same estimates of synergies and 1999 performance.
+
+  This range of earnings per share estimates was derived from the projections of 1999 combined results provided to the Old Waste and USA Boards of Directors by their respective senior management and outside financial advisers in March meetings to approve the proposed transaction.  Old Waste's outside financial adviser reported to the Old Waste Board that, based on historical financial and operating information from both companies, it projected combined 1999 financial results to be $2.90 per share, with $13.9 billion in revenue (assuming $250 million in revenue was divested following the merger) and synergies of $800 million.  USA's outside financial adviser reported to the USA Board that, based on historical financial and operating information from both companies, it projected combined 1999 results at $3.05 per share, with revenue of $13.8 billion (assuming $400 million of divestitures) and synergies of $800 million.  Both financial advisers projected approximately 11% revenue growth between 1998 and 1999 for the combined company.  In making their synergy assumptions from data provided by the companies, both financial advisers included $225 million of synergies from consolidating the headquarters of the two companies and other cost reductions at a corporate level, $400 million of synergies from the field (consolidation of duplicative routes, etc.) and $175 million from increased internalization of waste (disposing of company-collected waste in company-owned landfills or disposal sites).
+
+  The 1999 earnings forecast in the range of $2.90 to $3.05 was included in the joint proxy statement filed by USA and Old Waste on June 10, 1998 pursuant to Section 14(a) of the Exchange Act.  3     Recognizing that the integration of the significantly larger centralized Old Waste operations into the decentralized USA operating structure and the resulting synergies would be crucial to the success of the merged entity, the proxy also disclosed that ([t]he inability of management to successfully or timely integrate the operations of the two companies could have a material adverse effect on the business and operating results of New Waste Management.)
+
+  On July 29, 1998 B less than two weeks after the merger closed B WMI reiterated the 1999 earnings forecast of $2.90 to $3.05 per share at a meeting with analysts in New York City.  As described in the meeting, the forecast included $800 million in savings from synergies from the merger and $800 million in revenue growth from acquisitions.  In addition WMI predicted  internal revenue growth of 5% to 7%.  WMI stated that a significant part of the internal revenue growth was forecast to come from price increases that the company was planning to implement over the coming year and commented that they viewed the general pricing environment in the industry as strong.  Finally, WMI once again noted that achievement of the projected synergies and successful completion of the systems integration and conversion efforts were crucial to the success of WMI.
+
+  At the July 29, 1998 meeting WMI  introduced its senior management team.  4   In their comments to analysts on the company's prospects, WMI's management stated that the decentralized management structure to be employed by the new company depended on its field management's ability to meet deadlines and commitments in the provision of information and results to corporate level management.  This, in turn, required the company to provide its field management with the necessary tools for meeting these obligations, including adequate accounting and management information systems. 
+
+    3.  1998 Results and Projections of 1999 Performance 
+
+  Through the Fall of 1998, WMI was engaged in the initial phases of the integration of Old Waste into the USA decentralized structure.  The company performed several tests of the billing and accounting system conversions and was implementing the route consolidations, internalization of waste collections, and other changes necessary for the realization of the projected synergies.  By September 1, 1998, the company estimated internally that it was on target to realize close to $900 million of synergies, including $475 million from the field and waste internalization and more than $400 million from the elimination of Old Waste's headquarters and other corporate expenses.
+
+  On November 13, 1998 the company announced its results for the third quarter, its first as a combined entity.  On February 25, 1999, WMI announced its fourth quarter and year-end results.  Various measures of the company's actual performance for these periods, including growth in margins and revenue growth fueled by acquisitions, internalization of solid waste flows and other merger-related synergies, were consistent with the assumptions that formed the basis for the company's previous publicly stated projections. 
+
+  Thus, the company's forecast remained in the $3.00 to $3.05 per share range throughout the remainder of 1998 and was included in the 1999 budget presented to WMI's Board of Directors at their meeting on January 12, 1999.  
+
+    4.  The Company Implements Systems Conversions and Price Increases in the First Quarter of 1999 
+
+  a.   Systems Conversion 
+
+  Having completed tests of the accounting and billing systems conversions in the fall of 1998, the company began full-scale conversion of these systems in the first quarter of 1999.  Because Old Waste had centralized most of its accounting functions, these conversions were intensive, complex undertakings that involved both software and hardware components.  The overall effort required both the transfer of Old Waste accounting records to the USA system and the installation of USA system hardware and software to enable the Old Waste operating entities to perform their required accounting, recordkeeping and management information functions under the decentralized WMI structure.  Those operating entities that were part of Old Waste also had to be equipped with and instructed on the use of entirely new billing systems.
+
+  The company set an aggressive and, ultimately, unattainable timetable for these conversions.  The transfer to a single accounting system was to be completed in the first quarter and all billing conversions were to be completed by May 1999.  This schedule left very little time for unexpected events or particularly difficult conversions.
+
+  b.   Price Increases 
+
+  WMI decided to raise prices in many of  its operating areas by the end of the first quarter. The decisions on amount and timing of the price increases were left to the field management, who were in a position to assess the degree to which price increases were feasible for particular customers in their particular areas.  Although a decision was made to raise prices,  the actual evidence of whether, and to what extent, the price increases could be sustained would not be known immediately.  The implementation of the price increases  required varying periods of time, depending on the type of business (hauling, transfer or landfills), billing frequency and existing contractual requirements.  Further, once a price increase is announced and reflected in an invoice, there can be an additional delay before the customer accepts or rejects the increase.
+
+  Nevertheless, based on management's view of the competitive environment, particularly in some areas of the country, the company anticipated that it would be able to implement substantially all of these price increases B generating additional revenues and earnings B without losing significant amounts of collection or landfill disposal volumes, despite some initial losses in certain markets.  These assumptions on the competitive environment and the likely success of these price increases were key components of the company's 1999 earnings forecasts. 
+
+    5.  First Quarter 1999 Results and Projections of Second Quarter Performance 
+
+  The company's results in the first quarter of 1999, like those of the third and fourth quarters of 1998, were substantially consistent with the assumptions that formed the basis for the company's revenue projections for 1999.  Even though the company's revenues and volumes were slightly lower than expectations in the first quarter B a fact attributed mainly to a more severe late winter than expected B the company's earnings per share of $.61 were in the range that analysts had estimated for the quarter.
+
+   During a conference call with analysts on  May 6 discussing the first quarter of 1999, the company noted, (We don't see anything in these Q1 results that does anything but reinforce the guidance [of $.78 to $.81 per share for the second quarter] we've given to you.)  Landfill volumes had steadily increased in April consistent with the company's prior experience and the seasonal nature of its business. Historically, the company's revenues increased more than 10% from the first to the second quarters.
+
+  However, one significant area of concern in the company's first quarter 1999 results was that its cashflow was below expectations.  The apparent cause of this shortfall,  as explained to the analysts on May 6,  was a greater-than-expected increase in working capital needs.  WMI attributed this increased working capital to three areas:  increased accounts receivable from billing conversions which the company anticipated and believed would be temporary; prepayment of certain insurance and other expenses; and cash payments relating to the merger. WMI told the analysts that it would focus more attention on the receivables issue in the second quarter.  WMI's senior management directed its field management to focus their attention on decreasing receivables, but they knew that the decrease in receivables largely depended on the completion of the billing conversion as projected.
+
+    6.  Systems Problems Emerge in the Second Quarter of 1999 
+
+  Numerous systems problems in the early months of 1999 caused significant delays in the availability of financial management information.  Although the newly consolidated accounting system provided accounting data for the company's financial reporting obligations, it did not provide the company's field and corporate management access to timely financial management information that they needed to monitor the company's operations.  In response to this weakness, the company attempted to develop an additional management information system to provide these financial reports.  This system, however, was not linked to the general ledger system; it required significant manual entry at each level of the company's operations:  districts, regions and areas.  As a result, the information in this second system was often incomplete or inaccurate and required extensive and time-consuming manual reconciliations with the accounting system before reliable data was available.   The net effect of this additional work was consistent delays in the roll-up of financial management information from the field to the corporate office.  
+
+  By early June it should have been clear to  the company that the accounting and billing system conversions were not proceeding as quickly or effectively as the company had planned.  In late May 1999, senior management from one of the company's operating areas met with their regional controllers as well as corporate accounting and systems personnel to address the systems inadequacies causing the delays in the availability of financial management information out of the second system and the absence of any other management information tools.  An internal memorandum dated June 2 describing the meeting notes,  The conversion of the Old Waste operating entities= billing system to the USA system was similarly problematic.  The conversion led to delayed or erroneous billing of customers resulting in both lost revenue and increasing receivables.
+
+ By no later than June 9, however, WMI knew that the accounts receivable balance, which had been decreasing through April, had risen dramatically in May.  This knowledge was accompanied by increasing evidence from the field that the billing conversions had not been as successful as projected.  A large number of locations had not been converted by May as originally planned and, of those which were, many locations were still having difficulties generating accurate and timely bills.  In fact, many districts were not able to send out automated bills for two months due to the conversion.  When these districts attempted to send manually generated bills, the bills frequently contained numerous errors and required rebilling, further delaying the payment of the invoice.  The combination of a significant rise in accounts receivable and the mounting evidence of widespread conversion problems was more than sufficient to put WMI on notice that the company could not generate reliable information that could be used either to properly manage its business or to form the basis of a reliable projection of future performance.
+
+    7.  Field Earnings Estimates, Price Rollbacks and Decreasing Volume Signal the Likelihood of an Earnings Shortfall 
+
+  In an attempt to gain some insights into the company's prospects for the second quarter, corporate financial personnel collected from each of the five domestic operating areas an estimate of second quarter operating results.  By May 26, 1999, results for four of the five areas were summarized on a Quarter Consolidation Worksheet that compared these field estimates with the company's budget target.  This worksheet revealed that, before any shortfall from the fifth area was considered, the company's operating areas were estimating a revenue shortfall from target of more than $200 million and an earnings per share shortfall of $.11 for the second quarter.
+
+  On May 28, 1999, the fifth area reported its estimate for the second quarter, including an additional earnings shortfall that would further reduce total earnings per share by more than $.03.  5     Thus, the May 26 and 28 estimates were more than sufficient to alert the company to potential shortfalls in the second quarter.  6    Throughout the month of June, management received additional information suggesting potential problems with second quarter results.  First, in the week ending June 5, 1999, the weekly landfill report showed a decrease in volumes of approximately 20%.   Second, May's pricing results B available when the May books were closed at the area level in early to mid-June B demonstrated that certain of the company's operating areas had suffered price rollbacks, apparently indicating that field management was being forced either to reduce prices or to lose volumes in the face of significant customer resistance to the price increases which had been earlier imposed.  Customer acceptance of the new pricing strategy was an important assumption behind the company's publicly announced earnings projections.
+
+  The negative information coming from the field earnings estimates, reported landfill volumes and disappointing pricing results,  combined with the lack of reliable information about the company8.  WMI Senior Management Comments to Analysts on Second Quarter Projections at the June 7-9 Waste Expo Meeting in Dallas, Texas 
+
+  In discussions with analysts and other members of the public at the 1999 Waste Expo conference from June 7-9, 1999, one of the largest waste industry trade meetings, WMI nevertheless maintained its second quarter earnings guidance of $.78 to $.81 per share.  As one analyst report noted immediately following the conference, AOver the past several days, we have attended the solid waste industry's largest national convention, in Dallas.  It gave us the opportunity to speak with [WMI] management, and get an update on the current quarter.)  In its (Key Points) section, this report concluded that ([b]ased on recent conversations with management, we believe second-quarter results remain firmly on track.  We continue to recommend WMI with a Strong Buy rating.)  In addition to these comments on second quarter earnings, WMI's management also reported that volumes were (tracking on plan) based on the weekly volume reports, Areaffirmed the positive pricing outlook . . .) and stated that it expected to significantly reduce its accounts receivable balance in the second quarter.
+
+  As discussed above, by at least the date of this convention, WMI was in possession of steadily mounting evidence contrary to the optimism expressed to this analyst and to other members of the investing public.  Given the facts known to WMI of its systems inadequacies, the growing receivables balance, the presence of the May 26 and 28 estimates of revenue and earnings shortfalls, the appearance of price rollbacks, and the decreasing volumes, the company's statements to the public at this convention regarding its second quarter earnings were materially false and misleading.
+
+    9.  WMI  's (Discovery) of a Revenue Shortfall, Its July 6 Announcement and Subsequent Market Reaction 
+
+  Following the June 9 Waste Expo, the company received a steady stream of adverse information.  Weekly volume reports showed continued significant declines.  Moreover, Quarter Consolidation Worksheets prepared in the latter half of June showed the likelihood of very significant revenue shortfalls from the company's budget target and publicly announced projections for the second quarter.  Further, the company received additional information about current and projected operations from its Area Controllers during a meeting on June 30, 1999.  By July 2, 1999, senior management of the company was aware of a range of possible revenue shortfalls and resulting earnings forecasts based on the information received from the field.
+
+  After receiving and evaluating additional performance and other information from the company's field operations, WMI issued a press release on July 6, 1999 reporting a $250 million projected revenue shortfall from target levels and earnings per share forecasts in the range of $.67 - $.70 for the second quarter of 1999 and $2.65 - $2.70 for 1999.  By the close of trading on July 7, the company's share price had fallen from more than $53.50 per share to below $34 per share on trading volume of more than 70 million shares. The company indicated in the July 6 announcement that it was still analyzing data relating to the shortfall and that it would have more complete information when it reported earnings on August 3.  This announcement, however, put the market on notice of the magnitude of the company's problem, and the precipitous drop in WMI's share price continued.  After the company announced on August 3 that its actual earnings for the second quarter would be $.58 due to the resolution of several outstanding accounting issues, the company's stock closed on August 4 at $22.50.
+
+    10.  WMI's Board of Directors Responds to the Shortfall and Surrounding Circumstances 
+
+  Following the July 6 announcement, the company's Board of Directors moved to inquire  as to the circumstances surrounding the revenue shortfall, among other matters.  By July 13, 1999, the Board had appointed a three-member Executive Committee of independent members of the Board  to oversee the management of the company.  Further, the Audit Committee of the Board directed company personnel and the company's outside auditors to identify, review and resolve any outstanding accounting issues in connection with the company's financial statements prior to the filing of the company's Form 10-Q for the quarter ending June 30, 1999.
+
+  During July and August 1999 the Executive Committee and the Board made significant personnel changes at the most senior levels of the company, having requested and accepted the resignation of the company's Chief Financial Officer, General Counsel, Chief Operating Officer and Chief Executive Officer.  The Board replaced former management with interim managers and members of the Executive Committee.  
+
+  The Board also ordered the creation of an updated and more effective financial system and, to that end, ordered the deployment of personnel and resources to perform a detailed field-level review of the company's books and records.  To accomplish the detailed review of the company's accounting records, the Board and the interim leadership team mobilized more than 1,100 contract accountants.  Ultimately, this review resulted in the company's recognition of $1.23 billion in after-tax charges and adjustments to expenses.
+
+  Finally, the Board directed the company to cooperate fully in the Commission's investigation of the matter referred to in this Order and in connection with certain other matters.
+
+     IV. 
+
+     LEGAL ANALYSIS 
+
+  A. WMI VIOLATED THE ANTIFRAUD PROVISIONS OF THE EXCHANGE ACT
+
+  Section 10(b) of the Exchange Act and Rule 10b-5 thereunder prohibit any person, in connection with the purchase or sale of a security, from making an untrue statement of material fact or from omitting to state a material fact necessary in order to make statements made, in light of the circumstances under which they were made, not misleading.  To violate Section 10(b) and Rule 10b-5, a defendant must act with scienter,  Aaron v. SEC , 446 U.S. 680, 695 (1980), defined as Aa mental state embracing intent to deceive, manipulate, or defraud.)   Ernst & Ernst v. Hochfelder , 425 U.S. 185, 193 n.12 (1976).  Recklessness also has been found to satisfy the scienter requirement.   See ,  e . g .,  Decker v. Massey-Ferguson, Ltd. , 681 F.2d 111, 120 (2d Cir. 1982);  IIT v. Cornfeld , 619 F.2d 909, 923 (2d Cir. 1980);  Rolf v. Blyth, Eastman Dillon & Co., Inc. , 570 F.2d 38, 46 (2d. Cir.),  cert .  denied , 439 U.S. 1039 (1978).  The mental states of a corporation's officers may be imputed to the corporation for purposes of establishing its scienter.   See   SEC v. Manor Nursing Centers, Inc. , 458 F.2d 1082, 1096 n.16 (2d Cir. 1972).
+
+  A fact is material if there is a substantial likelihood that a reasonable investor would consider the information to be important.   Basic, Inc. v. Levinson , 485 U.S. 224, 231-32 (1988).  A company's projections about its own future financial performance have been considered material.   See   In the Matter of J. Douglas Elliott , Admin. Proc. File No. 3-9614, Rel. No. 34-40043, 67 SEC Docket 807 (May 29, 1998). 
+
+  WMI's management knew or acted in reckless disregard of whether the statements they made to analysts at the June Waste Expo conference about the company's second quarter performance lacked a reasonable basis by omitting to state material facts about the company=>s inadequate systems, growing receivables balance, internal estimates of shortfalls, declining volumes, and price rollbacks.  The fact that the deficiencies in WMI's systems prevented management from receiving timely and reliable data about the company's performance does not excuse the company for making statements without a reasonable basis or without disclosing material facts necessary to make the statements not misleading. Companies whose accounting and management systems do not provide adequate information from which they can make reasonable projections either must refrain from making any such statements about future performance or must disclose the basis on which any such statements are made and any other material information necessary to make such statements not misleading.  WMI's failure to do either violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.
+
+  B. WMI VIOLATED THE RECORDKEEPING AND INTERNAL CONTROL PROVISIONS OF THE EXCHANGE ACT
+
+  Section 13(b)(2)(A) of the Exchange Act requires issuers to "make and keep books, records, and accounts, which in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the issuer."  "A company's `books and records' include not only general ledgers and accounting entries, but also memoranda and internal corporate reports."   In the Matter of Gibson Greetings, Inc., Ward A. Cavanaugh, and James H. Johnsen , Admin. Proc. File No. 3-8866, Release No. 34-36357, 60 SEC Docket 1401 (Oct. 11, 1995).  Section 13(b)(2)(B) of the Exchange Act requires issuers to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain the accountability of assets.  
+
+  WMI's unsuccessful integration of the Old Waste and USA accounting systems resulted in accounting systems that required significant manual entry and reconciliation and, in the second quarter of 1999, prevented management from obtaining, in a timely manner, reliable information on the company's interim financial performance for control or other management purposes.  The company's failure to maintain accurate records of its financial performance that were accessible to management on a timely basis violated Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act.
+
+     V. 
+
+     FINDINGS 
+
+  Based on the foregoing, the Commission finds that WMI violated Sections 10(b), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rule10b-5 thereunder.
+
+     VI. 
+
+     OFFER OF SETTLEMENT 
+
+  WMI has submitted an Offer of Settlement in which, without admitting or denying the findings herein, it consents to the Commission's issuance of this Order, which makes findings, as set forth above, and orders WMI to permanently cease and desist from committing or causing any violation or future violation of Sections 10(b), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rule 10b-5.  In accepting WMI's offer of settlement, the Commission notes the prompt response of the company, acting through its Board of Directors and the Audit Committee of its Board of Directors, to investigate the facts surrounding the shortfall announcement.  The Commission further notes the cooperation extended to the Commission staff by the company at the direction of its Board and the Audit Committee during the course of the Commission's investigation.
+
+   VII. 
+
+   ORDER 
+
+  Accordingly, IT IS HEREBY ORDERED THAT:
+
+  WMI shall cease and desist from committing or causing any violation or future violation of Sections 10(b), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rule 10b-5.
+
+  By the Commission.
+
+  Jonathan G. Katz
+
+ Secretary 
+
+    1    The findings herein are made pursuant to the Respondent's Offer and are not binding on any other person or entity in this or any other proceeding.
+
+    2     WMI (including USA and Old Waste) initially provided estimates of its 1999 performance to the public in press releases announcing the merger between USA and Old Waste, in a joint proxy  filed by USA and Old Waste in June 1998 and at an introductory meeting of the new company following the July 16, 1998 closing of the merger between USA and Old Waste.    
+
+    3    The proxy disclosed that these projections (assumed annualized operating synergies and cost savings of approximately $800 million) and cautioned investors that, ([i]n light of the uncertainties inherent in forecasts of any kind, the inclusion of this forecast herein should not be regarded as a representation of USA Waste, Waste Management or New Waste Management . . . that the forecast will be achieved.)  
+
+    4    All of the senior managers at the corporate level were from USA and all but one of the five senior field managers were from USA.  At the operating level, however, the relative contribution of employees and management reflected Old Waste's larger size as almost 80% of the regions and districts were comprised primarily of former Old Waste personnel.
+
+    5    The Quarter Consolidation Worksheet prepared on May 28, however, showed virtually no change in the earnings per share shortfalls, as another area's earnings were increased by an amount equal to almost $.04 per share.
+
+    6    Earlier estimates were generated by the field from less complete data than was available on May 26 and May 28.  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1278.txt b/raw/aaer/2000/AAER-1278.txt
new file mode 100644
index 0000000000000000000000000000000000000000..26b19877685b3447e457d39458e5c39ee00681f9
--- /dev/null
+++ b/raw/aaer/2000/AAER-1278.txt
@@ -0,0 +1,1904 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Schnitzer & Kondub, P.C., Richard S. Kondub, CPA, and Ross J. Schnitzer, CPA 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359436","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Schnitzer & Kondub, P.C., Richard S. Kondub, CPA, and Ross J. Schnitzer, CPA
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Schnitzer & Kondub, P.C., Richard S. Kondub, CPA, and Ross J. Schnitzer, CPA
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.    42979  /  June 23, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.    1278  /  June 23, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No.   3-10242
+  
+
+      
+In the Matter of 
+  RICHARD S. KONDUB, CPA,
+ SCHNITZER & KONDUB, P.C.,
+ and ROSS J. SCHNITZER, CPA 
+   Respondents.   
+   
+
+  : : : : : : : :   
+   
+ 
+ORDER INSTITUTING PROCEEDINGS
+ PURSUANT TO RULE 102(e) OF THE
+ COMMISSION'S RULES OF PRACTICE,
+  MAKING FINDINGS AND IMPOSING
+ REMEDIAL SANCTIONS
+     I  
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and they hereby are, instituted against Schnitzer & Kondub, P.C. ("S & K"), Richard S. Kondub ("Kondub"), and Ross J. Schnitzer ("Schnitzer"), pursuant to paragraph (1)(ii) of Rule 102(e) of the Commission's Rules of Practice [17 C.F.R. § 201.102(e)(1)(ii)] ("Rule 102(e)(1)(ii)").  1   
+
+  II  
+
+   In anticipation of the institution of these administrative proceedings, S & K, Kondub and Schnitzer (collectively, "Respondents") have each submitted an Offer of Settlement, which the Commission has determined to accept.  Solely for the purpose of these proceedings, and any other proceeding brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the Commission's findings contained herein, except for the jurisdiction of the Commission over them and over the subject matter of these proceedings, which each Respondent admits, the Respondents consent to the entry of the findings and the imposition of the remedial sanctions set forth below. 
+
+  III  
+
+   The Commission makes the following findings:  2   
+
+    A.  SUMMARY   
+
+   Respondents engaged in improper professional conduct in connection with their audits of the financial statements of DCI Telecommunications, Inc. ("DCI) for fiscal years ended March 31, 1995, 1996, 1997, 1998 and 1999.  DCI incorporated those financial statements into the corresponding five Forms 10-K that it filed with the Commission.   
+
+   Each year Respondents issued audit reports stating that their audit had been conducted in accordance with generally accepted auditing standards ("GAAS") and that DCI's financial statements were presented in conformity with generally accepted accounting principles ("GAAP").  In fact, Respondents did not comply with GAAS in their audits of DCI's financial statements, and DCI did not present its annual financial statements in conformity with GAAP due to improper accounting for six business combinations and gross overvaluations of a purported $15 million contract and $5 million promissory note.     
+
+    B.  RESPONDENTS   
+
+    Schnitzer & Kondub, P.C.,  is a two partner accounting firm located in Harrison, New York.  S & K has been a member in good standing of the SEC Practice Section of the AICPA Division for Firms since 1995.  S & K was DCI's independent auditor for the five fiscal years 1995, 1996, 1997, 1998 and 1999.  S & K resigned as DCI's independent auditor in July 1999 upon completion of the 1999 audit.  
+
+    Richard S. Kondub , age 44, of S & K was the engagement partner on all five DCI audits.  Kondub is a certified public accountant licensed to practice in Connecticut.  He lives in Stamford, Connecticut. 
+
+    Ross J. Schnitzer , age 46, of S & K was the concurring partner on all five DCI audits.  Schnitzer is a certified public accountant licensed to practice in New York.  He lives in Bronxville, New York.  
+
+    C.  ISSUER   
+
+    DCI Telecommunications, Inc.  ("DCI") is a Colorado corporation headquartered in Stratford, Connecticut.  DCI went public through a reverse merger with an inactive, publicly-held, shell corporation, Fantastic Foods International, Inc., in December 1994.  DCI's primary business activity has been the acquisition of small, privately-held companies in stock-for-stock transactions.  At all relevant times, DCI was filing periodic reports pursuant to Section 13 of the Exchange Act.  On July 15, 1999, DCI's common stock was registered with the Commission pursuant to Section 12(g) of the Exchange Act.  The company's fiscal year ends March 31st. 
+
+    D.  DCI'S MAJOR GAAP VIOLATIONS   
+
+      1.  1995 Fiscal Year   
+
+        a) Alpha Products Acquisition  
+
+   In January 1995, DCI acquired the assets of Alpha Products (f/k/a Sigma Technologies, Inc.) in exchange for 850,000 shares of DCI common stock (split adjusted).  Alpha Products was a privately-held computer company owned and operated by DCI's Chief Executive Officer and several other individuals who had a personal or business relationship with him (the "CEO Group").  At the time of the acquisition, the CEO Group controlled both DCI and Alpha Products.  DCI valued Alpha Products' principal asset - its customer base - under the purchase method at fair market value.  However, because the companies were under common control, GAAP required that the customer base be valued at historical costs in a manner similar to that in a pooling of interests (Accounting Principles Board ("APB") Opinion No. 16, "Business Combinations," ¶ 5 (August 1970); APB No. 16, Accounting Interpretation No. 39). The improper valuation of the customer base inflated DCI's assets by $640,080, which accounted improperly for 19 percent of DCI's assets as originally reported in fiscal year 1995 (and 22 and 5 percent of assets as originally reported in fiscal years 1996 and 1997, respectively).   
+
+        b) Casino Marketing Acquisition  
+
+   On February 14, 1995, DCI acquired all of the outstanding stock of Casino Marketing Inc., a privately-held, development-stage company, in exchange for 2.5 million shares of unregistered DCI common stock.  All of the DCI common stock was placed in escrow to be released to the former owners of Casino Marketing based upon the future earnings of Casino Marketing.  None of the DCI stock was ever released from escrow because Casino Marketing collapsed shortly after the acquisition without generating any revenues.  Its only assets had been trademarks registered in the states of Connecticut and New Jersey.  DCI booked Casino Marketing's trademarks as a $1,800,000 intangible asset.  However, GAAP required that value be assigned to the assets in proportion to the stock released to the sellers (APB Op. No. 16 ¶ 80), and no stock was released.  DCI therefore inflated assets by $1,741,500 ($1,800,000 less amortization of $58,500) in fiscal year 1995, which accounted for 52 percent of DCI's reported $3,364,196 consolidated assets.  In the third quarter of the following fiscal year, DCI wrote off this acquisition as part of a purported "quasi reorganization." 
+
+        c)  Deferred Compensation  
+
+   In February 1995, DCI issued 1,250,000 shares of stock to three employees under the terms of their employment agreements.  DCI multiplied the number of shares issued (1,250,000) by the market price ($0.625) and recorded that amount ($781,250) as an asset called "deferred compensation" to be amortized over the six year term of the employment agreements.  However, GAAP required that the stock be accounted for as an expense (not as an asset) because the securities were issued as compensation for services rendered in fiscal year 1995 (see APB Op. No. 25 ¶ 12 (Dec. 1972)).  Even if the securities were not issued as compensation for services rendered in fiscal year 1995, the consideration relating to later periods should have been shown as a reduction of stockholder equity (again, not as an asset) (see APB Op. No. 25 ¶ 14).  As a result of the improper accounting for deferred compensation, DCI inflated assets by $759,550 (the value of the amortized asset at year end), which accounted for 23 percent of DCI's reported $3,364,196 consolidated assets.  At the end of the following fiscal year, DCI purportedly cancelled the stock issued to the three employees and wrote off all of the deferred compensation. 
+
+        d) 1995 Financial Statements   
+
+ DCI's improper accounting for Alpha Products, Casino Marketing and deferred compensation caused the company's assets as of March 31, 1995, to be materially misstated as follows:   
+ 
+
+
+     Fiscal Year 1995  
+ 
+ 
+ Assets 
+     
+ 
+  
+     Reported 
+ 
+  $3,364,196 
+     
+ 
+  
+     Less Overstatements: 
+ 
+  
+          Alpha Products 
+ 
+  ($640,080) 
+          Casino Marketing 
+ 
+  ($1,741,500) 
+          Deferred Comp. 
+ 
+  ($759,550) 
+     
+ 
+  
+     Reported Less Overstatements 
+ 
+  $223,066 
+     
+ 
+  
+     Percentage Overstatement  
+ 
+  1,408%  
+    As a result of this misstatement of assets, DCI's Form 10-K for fiscal year 1995, which it filed with the Commission on or about July 5, 1995, was materially false and misleading.      
+
+      2.  1996 Fiscal Year   
+
+        a) R & D Scientific Acquisition  
+
+     On June 19, 1995, DCI entered into a written agreement with the owners of R&D Scientific Corporation, a privately-held, New Jersey-based computer company.  That agreement entitled DCI to exchange 106,250 shares of DCI common stock (split adjusted) for all of the outstanding stock of R & D Scientific upon the satisfaction of certain contingencies.  Those contingencies were never met, and the transaction terminated on March 9, 1998.  DCI never obtained the securities or assets of, or effective control over, R&D Scientific.  DCI booked the transaction under the purchase method as if it had acquired R & D Scientific on June 19, 1995.  However, GAAP required that DCI not recognize the R & D acquisition until such time as it obtained the securities or assets of, or effective control over, R&D Scientific (APB Op. No. 16 ¶ 93), which it never did.  As a result of the improper accounting for R & D Scientific, DCI inflated revenues by $544,404 in fiscal year 1996, which accounted for two thirds of DCI's reported revenues (DCI continued to improperly report R&D Scientific revenues through fiscal year 1997, which accounted for $628,010 or about one quarter of DCI's $2,793,948 consolidated revenues).  DCI also improperly included an asset in its consolidated balance sheet relating to R & D Scientific's proprietary computer program, which DCI valued at $1,700,000, less amortization of $112,500, thus inflating consolidated assets by two thirds in fiscal year 1996 (and over one eighth in fiscal year 1997).  After being repeatedly questioned about this transaction by the Commission's Division of Corporation Finance, DCI restated its financial statements for the first time in May 1998 to omit R & D Scientific for all relevant periods.   
+
+        b) 1996 Financial Statements   
+
+ DCI's improper accounting for R & D Scientific and Alpha Products caused the company's assets and revenues as of fiscal year ended March 31, 1996 to be materially misstated as follows: 
+ 
+
+
+     Fiscal Year 1996    
+ 
+  Assets 
+ 
+  Revenues 
+     
+ 
+  
+ 
+  
+     Reported 
+ 
+  $2,589,250 
+ 
+  $814,016 
+     
+ 
+  
+ 
+  
+     Less Overstatements: 
+ 
+  
+ 
+  
+          R & D Scientific 
+ 
+  ($1,587,500) 
+ 
+  ($544,404) 
+          Alpha Products 
+ 
+  ($574,705) 
+ 
+  ($0) 
+          Other 
+ 
+  ($212,414) 
+ 
+  ($0) 
+     
+ 
+  
+ 
+  
+     Reported Less Overstatements   
+ 
+  $214,631 
+ 
+  $269,612 
+     
+ 
+  
+ 
+  
+     Percentage Overstatement 
+ 
+  1,106% 
+ 
+  202% 
+    As a result of those misstatements, DCI's Form 10-K for fiscal year 1996, which it filed with the Commission on or about July 10, 1996, was materially false and misleading.      
+
+      3.  1997 Fiscal Year   
+
+        a) Muller Media Acquisition  
+
+   On November 26, 1996 DCI entered into a written agreement with the owners of Muller Media, Inc., a privately-held, New York-based movie and television distributor.  That agreement entitled DCI to acquire all of the outstanding stock of Muller Media upon the satisfaction of certain contingencies.  Those contingencies were not met until June 9, 1998, at which time DCI acquired 100 percent of the common stock of Muller Media in exchange for $3 million cash.  DCI nevertheless recognized the Muller Media acquisition under the purchase method as if it had occurred on November 26, 1996.  GAAP required that DCI not recognize the acquisition until such time as it obtained the securities or assets of, or effective control over, Muller Media (APB Op. No. 16 ¶ 93), which it did not do until June 9, 1998.  As a result of the improper accounting for Muller Media, in fiscal year 1997 DCI inflated assets by $6,216,493 and revenues by $825,225, which accounted for 58 percent of reported assets and 30 percent of reported revenues (DCI continued to improperly book Muller Media in fiscal year 1998, which accounted for 29 percent of assets and one third of revenues).  After being repeatedly questioned by the Commission's Division of Corporation Finance about this transaction and the CardCall acquisition (described below), DCI restated its financial statements for the second time in February 1999. 
+
+        b)  Travel Source Acquisition  
+
+   On March 25, 1997 -- six days before the close of its 1997 fiscal year -- DCI acquired all of the outstanding stock of The Travel Source Ltd., a privately-held, Rhode Island-based travel agency.  DCI paid Travel Source's former owners 29,412 shares of DCI common stock valued at $3.40 per share and promised to pay additional stock sufficient to bring the purchase price to $100,000 in six months if the price of DCI stock fell below $3.40.  DCI accounted for the Travel Source acquisition as a pooling of interests, thus booking Travel Source's revenues for the entire fiscal year.  However, GAAP required that the acquisition be accounted for under the purchase method because the acquisition agreement provided for contingent future consideration (see APB Op. No. 16 ¶ 47(g)).  As a result of the improper accounting for Travel Source, in fiscal year 1997 DCI inflated revenues by $1,088,713, which accounted for 39 percent of reported revenues (in addition, DCI improperly restated its fiscal year 1996 financial results to include $1,028,154 worth of Travel Source revenues, which accounted for 56 percent of restated revenues).  This transaction was part of the company's second restatement in February 1999. 
+
+      c) 1997 Financial Statements   
+
+ DCI's improper accounting for Muller Media, Travel Source, R & D Scientific and Alpha Products caused the company's assets and revenues as of fiscal year ended March 31, 1997 to be materially misstated as follows: 
+ 
+
+
+     Fiscal Year 1997    
+ 
+  Assets 
+ 
+  Revenues 
+     
+ 
+  
+ 
+  
+     Reported 
+ 
+  $10,733,959 
+ 
+  $2,793,948 
+     
+ 
+  
+ 
+  
+     Less Overstatements: 
+ 
+  
+ 
+  
+          Muller Media 
+ 
+  ($6,216,493) 
+ 
+  ($825,225) 
+          Travel Source 
+ 
+  ($0) 
+ 
+  ($1,088,713) 
+          R & D Scientific 
+ 
+  ($1,723,167) 
+ 
+  ($628,010) 
+          Alpha Products 
+ 
+  ($509,329) 
+ 
+  ($0) 
+     
+ 
+  
+ 
+  
+     Reported Less Overstatements 
+ 
+  $2,284,970 
+ 
+  $252,000 
+     
+ 
+  
+ 
+  
+     Percentage Overstatement 
+ 
+  370% 
+ 
+  1,009% 
+    As a result of those misstatements, DCI's Form 10-K for fiscal year 1997, which it filed on or about June 25, 1997, was materially false and misleading.      
+
+      4.  1998 Fiscal Year   
+
+        a) CardCall Acquisition  
+
+   In early 1997, DCI began negotiating the acquisition of a privately-held, prepaid phone card company, CardCall International Holdings, Inc., and its two wholly-owned subsidiaries, CardCaller Canada, Inc. and CardCall (UK) Ltd. (collectively "CardCall").  On or about March 31, 1997, management of both companies entered into an acquisition agreement, which was subject to approval by CardCall's shareholders.  On or about May 29, 1997, over 90 percent of CardCall's shareholders tendered their shares.  DCI nevertheless recognized the CardCall acquisition as if it had occurred on March 31, 1997.  GAAP required that DCI not recognize the acquisition until such time as it obtained the securities or assets of, or effective control over, CardCall (APB Op. No. 16 ¶ 93), which it did not do until May 29, 1997.  As a result of the improper accounting for CardCall, in fiscal year 1998 DCI inflated revenues by $906,429, which accounted for 11 percent of reported revenues.  This transaction was part of the company's second restatement in February 1999. 
+
+        b) 1998 Financial Statements  
+
+ DCI's improper accounting for Muller Media and CardCall caused the company's assets and revenues as of fiscal year ended March 31, 1998 to be materially misstated as follows: 
+ 
+
+
+     Fiscal Year 1998    
+ 
+  Assets 
+ 
+  Revenues 
+     
+ 
+  
+ 
+  
+     Reported 
+ 
+  $21,671,073 
+ 
+  $8,117,127 
+     
+ 
+  
+ 
+  
+     Less Overstatements: 
+ 
+  
+ 
+  
+          Muller Media      
+ 
+  ($6,215,098) 
+ 
+  ($2,892,897) 
+          CardCall 
+ 
+  ($0) 
+ 
+  ($906,429) 
+     
+ 
+  
+ 
+  
+     Reported Less Overstatements   
+ 
+  $15,455,975 
+ 
+  $4,317,801 
+     
+ 
+  
+ 
+  
+     Percent Overstatement 
+ 
+  40% 
+ 
+  88% 
+    As a result of those misstatements, DCI's Form 10-K for fiscal year 1998, which was filed with the Commission on or about June 30, 1998, was materially false and misleading.      
+
+      5.  1999 Fiscal Year    
+
+        a) IXC Contract  
+
+   In late November and early December of 1998, DCI entered into a series of agreements (collectively, "IXC contract") with IXC Communications, Inc., a Texas-based telecommunications company.  Under the terms of the IXC contract, IXC reinstated previously cut-off carrier services to DCI's prepaid phonecard subsidiary (Edge Communications) at fixed rates in exchange for 4,250,000 shares of unregistered DCI common stock ("IXC shares").  The IXC shares represented approximately 13 percent of DCI's then-outstanding common stock and approximately 117 percent of DCI's total trading volume for the month of December 1998 (3,641,500 shares).  DCI was supposed to have received a relatively valuable telecommunications switch, but that part of the transaction fell apart in December 1998.  DCI suspended all business with IXC as of September 30, 1999, because it did not receive the switch and because the company's rates under the IXC contract were not competitive.   
+
+   DCI valued the IXC contract as a $15,671,875 intangible asset by multiplying the market price of DCI's common stock on the day the agreements were executed by the number shares exchanged.  However, GAAP required that DCI use a discounted stock price reflecting the restricted nature of the IXC shares and the thinly-traded nature of the market for DCI securities (see Accounting Series Release No. 113 (Oct. 21, 1969)).  DCI also departed from GAAP by failing to recognize an impairment loss on the IXC contract to reflect the fact that material aspects of the transaction fell apart (see Statement of Financial Accounting Standards No. 121 ¶ 1-14 (March 1997)).  Given the uncertainties surrounding this business relationship, DCI should not have recognized the IXC contract as an asset at fiscal year end (see FASB, Statement of Financial Accounting Concept No. 5, "Recognition and Measurement in Financial Statements of Business Enterprises") (Dec. 1984)).  As a result of the improper accounting for the IXC contract, in fiscal year 1999 DCI inflated assets by $14,888,280 (the amortized IXC contract at fiscal year end), which accounted for over half of reported assets.  DCI wrote off the unamortized portion of this intangible asset in the second quarter of fiscal year 2000.     
+
+        b)  Carlyle Promissory Note  
+
+   On March 30, 1999 -- one day before the close of its 1999 fiscal year -- DCI entered into a series of agreements with Carlyle Corporation.  Carlyle was an Arizona-based, private shell company with no assets or revenues.  The agreements concerned a purported sale to Carlyle of Cyberfax, Inc., a DCI subsidiary with no significant assets or revenues, but with approximately $200,000 in bank debt.  As part of that purported sale, DCI received a promissory note entitling it to $5,000,000 worth of Carlyle common stock in the event that company went public.  Three days later, on April 3, 1999, Carlyle rescinded the agreement.  Notwithstanding the rescission, DCI included the $5,000,000 Carlyle promissory note in its consolidated assets as of March 31, 1999, together with a corresponding $5,000,000 liability described as "deferred revenue."  GAAP required that the Carlyle promissory note be valued at fair market, which was zero given the rescission.  This transaction was effectively written off during the first quarter of fiscal year 2000.      
+
+   DCI also departed from GAAP by accounting for the Cyberfax transaction as a sale.  Carlyle paid nothing up front for Cyberfax besides the promissory note.  The value of the note was wholly dependent upon the future success of Cyberfax and, more specifically, a contemplated initial public offering by the Carlyle shell.  Under those circumstances, there was no divestiture of Cyberfax for accounting purposes because the primary incidents of ownership -- such as the risk of failure and the rewards of success -- remained with DCI.  Even without the rescission, the Cyberfax transaction should have been accounted for by segregating the assets ($393,022) and liabilities ($220,250) of Cyberfax as of March 31, 1999, on DCI's balance sheet with a footnote disclosing the terms of the promissory note and uncertainties surrounding its collectibility (SEC Accounting Rules, Topic 5-E ("Accounting for Divestiture of a Subsidiary or Other Business Operation")(Feb. 1986)). 
+
+        c) 1999 Financial Statements  
+
+ DCI's improper accounting for the IXC contract and Carlyle promissory note caused the company's assets at fiscal year ended March 31, 1999 to be materially misstated as follows: 
+ 
+
+     Fiscal Year 1999    
+ 
+  Assets 
+     
+ 
+  
+     Reported 
+ 
+  $36,738,332 
+     
+ 
+  
+     Less Overstatements: 
+ 
+  
+          IXC contract 
+ 
+  ($14,888,281) 
+          Carlyle promissory note             
+ 
+  ($5,000,000) 
+     
+ 
+  
+     Reported Less Overstatements 
+ 
+  $16,850,051 
+     
+ 
+  
+     Percentage Overstatement 
+ 
+  118% 
+    As a result of those material misstatements, DCI's Form 10-K for fiscal year 1999, which it filed with the Commission on or about July 1, 1999, was materially false and misleading.      
+
+   
+
+    E. RESPONDENTS' FAILURES TO COMPLY WITH  
+
+       PROFESSIONAL STANDARDS   
+
+   S & K, Kondub and Schnitzer failed to follow GAAS and to require DCI to comply with GAAP during the performance of their audits of the company's financial statements for fiscal years 1995, 1996, 1997, 1998 and 1999.  
+
+      1.  1995 Audit   
+
+   As described above, in fiscal year 1995 DCI accounted improperly for its acquisitions of Casino Marketing and Alpha Products and for deferred compensation.  Those three items accounted for over 90 percent of DCI's reported $3,364,196 assets as of March 31, 1995. 
+
+
+
+   With respect to Casino Marketing, Kondub reviewed documents during the fiscal year 1995 audit that clearly disclosed the earnings contingency.  Had he exercised due professional care, Kondub would have realized that because of the earnings contingency DCI's accounting for Casino Marketing did not comply with GAAP (see APB Op. No. 16 ¶ 80).  Similarly, with respect to deferred compensation, Kondub should have known from information disclosed to him that DCI's accounting for that transaction did not comply with GAAP.  Kondub departed from GAAS by failing to exercise due professional care during the 1995 audit (AICPA Codification of Statements on Auditing Standards ("AICPA") AU § 230 (Due Care in Performance of Work)).   
+
+   The Casino Marketing earnings contingency was disclosed in a footnote to DCI's draft financial statements, which Schnitzer read during his 1995 concurring review.  Similarly, Schnitzer should have known from information disclosed to him in DCI's draft financial statements that the company's accounting for deferred compensation did not comply with GAAP.  Schnitzer departed from GAAS by failing to exercise due professional care during his 1995 concurring review.  
+
+   With respect to Alpha Products, Kondub knew that DCI and Alpha Products were under common control and that, as a result, GAAP required that the customer base be accounted for at historical costs (see APB Op. No. 16, ¶ 5; APB No. 16, AI No. 39).   Kondub nevertheless concluded that the company's valuation was reasonable in light of a net present value calculation.  That approach essentially valued the customer base at fair market, which was not appropriate in view of the common control issue.  Kondub departed from GAAS by failing to obtain adequate evidentiary support for the purported historical costs of the customer base (AICPA AU § 3226 (Evidential Matter)). 
+
+
+
+      2.  1996 Audit   
+
+   The major accounting issue in the fiscal year 1996 audit was DCI's acquisition of R & D Scientific, as a result of which DCI improperly booked a $1,700,000 intangible asset (less amortization of $112,500), thus inflating assets by a factor of seven and revenues by a factor of three.   
+
+   Kondub recognized that DCI's acquisition of R & D Scientific was not complete for accounting purposes and that, as a result, the company's 1996 financial statements did not comply with GAAP (see APB Op. No. 16 ¶ 93).  Kondub dealt with the problem by issuing an audit report containing an unqualified opinion with an emphasis paragraph that provided in relevant part that DCI had "not completed" its acquisition of R & D Scientific and that certain "adjustments" may be necessary in the future (see AICPA AU § 508.32).  However, GAAS required that Kondub issue a qualified opinion stating in relevant part that "except for" R & D Scientific DCI's financial statements complied with GAAP (see AICPA AU § 508, especially §§ 508.20, 508.39 & 508.53 (Jan. 1989)).  Kondub departed from GAAS by failing to appropriately qualify his firm's 1996 audit report (the 1997 audit opinion contained the same shortcomings). 
+
+   Schnitzer concurred with Kondub's view that DCI's acquisition of R & D Scientific was not complete for accounting purposes and that the company's 1996 financial statements did not comply with GAAP.  Schnitzer also concurred with the language used in the 1996 audit opinion to deal with the R & D Scientific problem.  Like Kondub, Schnitzer failed to recognize the difference between a qualified opinion and an unqualified opinion with an emphasis paragraph (compare AICPA AU § 508.53 with AICPA AU § 508.32).  Schnitzer departed from GAAS by failing to exercise due professional care in his concurring review of S & K's 1996 audit opinion (Schnitzer's 1997 concurring review had the same shortcomings with respect to R & D Scientific).  
+
+      3.  1997 Audit   
+
+   Two of the major accounting issues in the fiscal year 1997 audit were DCI's acquisitions of Travel Source and Muller Media, as a result of which DCI improperly inflated consolidated assets by a factor of four and revenues by a factor of ten. 
+
+   With respect to Travel Source, Kondub reviewed documents during the fiscal year 1997 audit that clearly disclosed the contingent consideration.  Had he exercised due professional care, Kondub would have realized that because of the contingent consideration DCI's accounting for Travel Source as a pooling of interest did not comply with GAAP (see APB Op. No. 16 ¶ 47(g)).  With respect to Muller Media, Kondub recognized that DCI's acquisition was not complete for accounting purposes and that, as a result, the company's 1997 financial statements did not comply with GAAP (see APB Op. No. 16 ¶ 93).  Kondub dealt with the problem by issuing an audit report containing an unqualified opinion with an emphasis paragraph that provided in relevant part that DCI had "not completed" its acquisition of Muller Media and that certain "adjustments" may be necessary in the future (see AICPA AU § 508.32).  However, GAAS required that Kondub issue a qualified opinion stating in relevant part that "except for" Muller Media DCI's financial statements complied with GAAP (see AICPA AU § 508, especially §§ 508.20, 508.39 & 508.53).  Kondub departed from GAAS by failing to appropriately qualify his firm's 1997 audit report and by otherwise failing to exercise due professional care. 
+
+   Schnitzer concurred with Kondub's view that DCI's acquisition of Muller Media was not complete and that the company's 1997 financial statements did not comply with GAAP.  Schnitzer also concurred with the language used in the 1997 audit opinion to deal with the Muller Media problem, again departing from applicable professional standards by failing to exercise due professional care in his review of S & K's 1997 audit opinion.  
+
+      4.  1998 Audit   
+
+   Two of the major accounting issues in the fiscal year 1998 audit were DCI's acquisitions of Muller Media and CardCall, as a result of which DCI improperly inflated revenues by 36 percent and 11 percent, respectively, and assets by 29 percent. 
+
+   With respect to Muller Media, Kondub relied upon an opinion letter from DCI's outside counsel in changing his view of that acquisition and concluding that it was complete for accounting purposes.  The opinion letter discussed various closing dates associated with the Muller Media transaction, but provided no basis for concluding that DCI had obtained the securities of, or effective control over, Muller Media prior to the close of fiscal year 1998 (see APB Op. No. 16 ¶ 93).  With respect to CardCall, Kondub agreed with DCI that it could recognize the acquisition as of April 1, 1997, approximately two months before CardCall's shareholders approved the transaction.  None of the materials Kondub reviewed provided an adequate basis for his conclusion that DCI had obtained the securities of, or effective control over, CardCall prior to May 29, 1997, when CardCall's shareholders tendered their shares (see APB Op. No. 16 ¶ 93).  Kondub departed from GAAS by failing to obtain adequate evidentiary support for the company's accounting for Muller Media and CardCall.  
+
+   Schnitzer concurred in Kondub's reassessment of the Muller Media acquisition.  Like Kondub, Schnitzer relied unreasonably upon the Muller Media opinion letter in concluding that DCI's accounting for that acquisition complied with GAAP.  Schnitzer departed from GAAS by failing to exercise due professional care in his reassessment of the Muller Media acquisition. 
+
+
+
+      e)  1999 Audit   
+
+   Two of the major accounting issues in the fiscal year 1999 audit were the IXC contract and Carlyle promissory note, as a result of which DCI booked two intangible assets improperly valued at approximately $15 million and $5 million, respectively.   
+
+   With respect to the IXC contract, the company sought to avoid recognizing an "impairment loss" pursuant to SFAS No. 121 by providing its auditors with projections that purported to show that the agreement was still worth at least $15 million.  The critical assumption used to justify DCI's projections was that the company would increase its volume of business under the IXC contract by 10 percent each month for five years.  As S & K's workpapers demonstrated, lowering the monthly growth rate assumption to 5 percent reduced the present value of the IXC contract to $2 million.  Kondub departed from GAAS by signing off on those projections and the 10 percent growth rate despite clear warnings that the relationship between IXC and DCI was rapidly deteriorating (see AICPA AU § 342 (requiring auditors to evaluate the reasonableness of management's accounting estimates with an attitude of professional skepticism)).  Those warnings included a May 1999 letter from DCI to IXC stating, "we did not receive the switch . . . which was the key to the whole transaction" and "I firmly believe that our `marriage' which was made a little short of heaven, should be undone."  Schnitzer admitted that valuation of the IXC contract was a high risk area and that he read the May 1999 letter, but nevertheless concurred in Kondub's conclusion that the company's projections and 10 percent growth rate assumption were reasonable.      
+
+   With respect to the Carlyle promissory note, DCI did not disclose the rescission to its independent auditor during the 1999 audit.  Nevertheless, Kondub departed from GAAP by recommending that the Carlyle promissory note be accounted for as a sale, instead of the more conservative balance sheet presentation required in view of the fact that DCI had not "divested" itself of Carlyle for accounting purposes  (SEC Accounting Rules, Topic 5-E, ¶ 7365, at 5083-86).  Schnitzer played an active role in the decision to account for the Carlyle transaction as a sale.  
+
+  IV  
+
+   Based on the above-described failures to follow professional auditing and accounting standards, the Commission finds that Respondents engaged in improper professional conduct within the meaning of Rule 102(e)(1)(ii). 
+
+  V  
+
+   Accordingly, IT IS HEREBY ORDERED, effective immediately, that: 
+
+   A. Schnitzer & Kondub, P.C., Richard S. Kondub, and Ross J. Schnitzer, are denied the privilege of appearing or practicing before the Commission as accountants. 
+
+   B. After five (5) years from the date of this order, Richard S. Kondub or Ross J. Schnitzer ("Applicant") may request that the Commission consider his reinstatement by submitting an application (attention: Office of the Chief Accountant) to resume appearing or practicing before the Commission as: 
+
+     1. a preparer or reviewer, or a person responsible for the preparation or review, of any public company's financial statements that are filed with the Commission. Such an application must satisfy the Commission that Applicant's work in his practice before the Commission will be reviewed either by the independent audit committee of the public company for which he works or in some other acceptable manner, as long as he practices before the Commission in this capacity; and/or 
+
+     2. an independent accountant.  Such an application must satisfy the Commission that:  (a) Applicant, or the firm with which he is associated, is a member of the SEC Practice Section of the American Institute of Certified Public Accountants Division for CPA Firms ("SEC Practice Section"); (b) Applicant, or the firm, has received an unqualified report relating to his, or the firm's, most recent peer review conducted in accordance with the guidelines adopted by the SEC Practice Section; and (c) As long as Applicant appears or practices before the Commission as an independent accountant he will remain either a member of the SEC Practice Section or associated with a member firm of the SEC Practice Section, and will comply with all applicable SEC Practice Section requirements, including all requirements for periodic peer reviews, concurring partner reviews, and continuing professional education. 
+
+   C. The Commission's review of an application by Applicant to resume appearing or practicing before the Commission may include consideration of, in addition to the matters referenced above, any other matters relating to Applicant's character, integrity, professional conduct, or qualifications to appear or practice before the Commission. 
+
+ By the Commission. 
+
+             Jonathan G. Katz
+             Secretary  
+  Footnotes 
+
+
+   1    Rule 102(e)(1) provides in relevant part:
+
+  The Commission may censure a person or deny, temporarily or permanently, the privilege of appearing or practicing before it in any way to any person who is found by the Commission after notice and opportunity for hearing in the matter . . . (ii) to have engaged in unethical or improper professional conduct. 
+
+   2     The findings herein are not binding on anyone other than Schnitzer & Kondub, P.C., Richard S. Kondub, and Ross J. Schnitzer. 
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1279.txt b/raw/aaer/2000/AAER-1279.txt
new file mode 100644
index 0000000000000000000000000000000000000000..85f4474610c770169d41c9bdf025ea39528d22ff
--- /dev/null
+++ b/raw/aaer/2000/AAER-1279.txt
@@ -0,0 +1,1373 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | DCI Telecommunications, Inc., Joseph J. Murphy, Russell B. Hintz, and Grace P. Murphy 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483551","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              DCI Telecommunications, Inc., Joseph J. Murphy, Russell B. Hintz, and Grace P. Murphy
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        DCI Telecommunications, Inc., Joseph J. Murphy, Russell B. Hintz, and Grace P. Murphy
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+ Washington, D.C. 
+
+ Litigation Release No.  16609  / June 26, 2000
+
+  Accounting and Auditing Enforcement Release No.1279 / June 26, 2000 
+
+ SECURITIES AND EXHANGE COMMISSION V. DCI TELECOMMUNICATIONS, INC., JOSEPH J. MURPHY, RUSSELL B. HINTZ, and GRACE P. MURPHY, Case No. 00 Civ. 4664 (RWS) (S.D.N.Y. filed June 23, 2000) 
+
+      SEC FILES MICROCAP ACCOUNTING FRAUD CASE AGAINST DCI TELECOMMUNICATIONS, INC. AND TWO OF ITS OFFICERS, AND SETTLES RELATED PROCEEDINGS AGAINST AUDITORS  
+
+   The Securities and Exchange Commission ("Commission") announced today that on June 23, 2000, it filed a microcap accounting fraud complaint against DCI Telecommunications, Inc. (`DCI") and its Chief Executive Officer, Joseph J. Murphy, and Chief Financial Officer, Russell B. Hintz.  The complaint also names Murphy's wife, Grace P. Murphy, as a relief defendant who is alleged to have received tainted proceeds from the fraudulent conduct of the other defendants.  This enforcement action follows a temporary trading suspension that the Commission ordered on May 3, 1999 based on questions raised regarding the accuracy and adequacy of DCI's financial statements.  See Exchange Act Rel. No. 41358 (May 3, 1999). 
+
+   The Commission's complaint, filed in the United States District Court for the Southern District of New York, alleges that between March 1995 and June 1999, DCI improperly accounted for seven acquisitions and grossly overvalued a purported $15 million contract and $5 million promissory note.  According to the complaint, DCI's improper accounting caused the financial statements in five of DCI's Forms 10-K and twelve of its Forms 10-Q to be materially false and misleading.  The complaint alleges that DCI's accounting fraud victimized investors who were deceived into believing DCI was a vibrant, high-growth telecommunications company, as well as the owners of several small businesses who sold their companies to DCI in exchange for near-worthless DCI stock.         
+
+ In addition, the complaint alleges that DCI used its false financial statements to raise $9 million in equity financing through Regulation D and Regulation S private placements and to acquire a distribution contract that DCI subsequently sold for an additional $9 million.  The complaint further alleges that DCI improperly raised additional funds by using its employees as conduits to sell S-8 stock to the public and kick back the sale proceeds to DCI.   
+
+ The Commission charges DCI with violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 ("Securities Act") and Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5, 12b-20, 13a-1 and 13a-13 thereunder, and seeks a permanent injunction, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties from and against DCI. 
+
+   According to the complaint, the persons responsible for DCI's accounting fraud were its CEO, defendant Joseph J. Murphy, and its CFO, defendant Russell B. Hintz.  The complaint alleges that both Murphy and Hintz knew, or were reckless in not knowing, that DCI's acquisitions accounting did not comply with generally accepted accounting principles and that DCI grossly overvalued the purported $15 million contract and $5 million promissory note.  The complaint further alleges that Murphy and his wife were unjustly enriched by DCI's payment of their personal expenses, and that the Murphys and Hintz were unjustly enriched by the sale of DCI common stock during the fraud.  The Commission charges Murphy and Hintz with violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rules 10b-5, 13b2-1 and 13b2-2 thereunder, and with aiding and abetting DCI's violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder.  The complaint seeks a permanent injunction, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties from and against both Murphy and Hintz, and disgorgement with prejudgment interest from Murphy's wife. 
+
+   The complaint further alleges that Murphy is liable as a control person, under Section 20(a) of the Exchange Act, for DCI's violations of Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1 and 13a-13 thereunder, because he failed to exercise due care in his supervision of the company's accounting practices.  The complaint also charges Murphy with orchestrating the scheme by which DCI improperly raised capital by using its employees as conduits to sell S-8 stock to the public in violation of Sections 5(a) and 5(c) of the Securities Act.  The Commission alleges that, by engaging in the conduct described in the complaint, Murphy has demonstrated his substantial unfitness to serve as an officer or director of a publicly traded company, and thus seeks a permanent officer and director bar against him pursuant to Section 20(e) of the Securities Act and Section 21(d) of the Exchange Act. 
+
+   In a related matter, also on June 23, 2000, the Commission instituted and settled administrative proceedings against DCI's independent auditor, Schnitzer & Kondub, PC, and its two partners, Richard B. Kondub, CPA, and Ross J. Schnitzer, CPA, pursuant to Rule 102(e) of the Commission's Rules of Practice.  Without admitting or denying the Commission's substantive findings, the accounting firm consented to an order denying it the privilege of appearing or practicing before the Commission as an accountant, and both Kondub and Schnitzer consented to an order denying them the privilege of appearing or practicing before the Commission as accountants with the right to apply for reinstatement after 5 years.  See Exchange Act Rel. No. 42979 and AAER. No. 1278 (June 23, 2000).             
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1280.txt b/raw/aaer/2000/AAER-1280.txt
new file mode 100644
index 0000000000000000000000000000000000000000..aba8422dc52349f515d6200c4a4a4b69469cf497
--- /dev/null
+++ b/raw/aaer/2000/AAER-1280.txt
@@ -0,0 +1,1507 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Gregory A. Alba, CPA 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359431","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Gregory A. Alba, CPA
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Gregory A. Alba, CPA
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+
+ Release No.  42981 / June 26, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+
+ Release No.  1280 / June 26, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+
+ File No. 3-10243
+  
+
+
+      
+In the Matter of 
+  Gregory A. Alba, CPA
+  Respondent.   
+   
+
+  : : : : : : : :   
+   
+ 
+ORDER INSTITUTING PUBLIC
+ ADMINISTRATIVE
+ PROCEEDINGS  PURSUANT TO 
+ RULE 102(e) OF THE
+ COMMISSION'S RULES OF
+ PRACTICE, MAKING FINDINGS
+ AND IMPOSING REMEDIAL
+ SANCTIONS
+    I. 
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and they hereby are, instituted against Gregory A. Alba ("Alba"), a CPA, pursuant to Rule 102(e)  1   of the Commission's Rules of Practice [17 C.F.R. §201.102(e)] ("Rule 102(e)"). 
+
+ II. 
+
+   In anticipation of the institution of these proceedings, Alba has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of these proceedings, and any other proceedings brought by or on behalf of the Commission or to which the Commission is a party, Alba, without admitting or denying the findings set forth herein, except those findings contained in Section III,A and E, below, and the Commission's jurisdiction over him, which are admitted, consents to the entry of this Order instituting Public Proceedings Pursuant to Rule 102(e) of the Commission's Rules of Practice, Making Findings, and Imposing Remedial Sanctions.   
+
+             III.   
+
+   Based on this Order and Alba's Offer, the Commission finds the following:  
+
+   A. Alba is a certified public accountant licensed by the State of Arizona.  Alba served as Computone Corporation's ("Computone") controller from August 1994 until March 1996, as its vice president of finance and administration and its chief financial officer from April 1996 until July 27, 1998, and as its principal financial accounting officer from October 1995 until July 27, 1998.      
+
+   B. Computone is a company headquartered in Alpharetta, Georgia that designs, manufactures and sells computer hardware and software products. Computone's common stock is registered pursuant to Section 12(g) of the Securities Exchange Act of 1934 ("Exchange Act"). 
+
+   C. On September 28, 1999, the Commission filed a civil injunctive action against Alba and others [ Securities and Exchange Commission v. Computone Corporation, Thomas J. Anderson, Gregory A. Alba, Donald A. Pearce, Duncan E. Hume, and Brian D. Kretschman , Civil Action No. 1:99-CV-2496, (N.D. Ga.)] alleging that Alba violated Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5, 13b2-1 and 13b2-2 thereunder, and charging him with liability, as a control person, for violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder. 
+
+   D. The Commission's complaint alleged that during 1995, 1996 and 1997, Alba prepared or assisted in the preparation of financial statements contained in certain periodic reports filed on behalf of Computone with the Commission and numerous press releases issued by Computone. The reports materially misrepresented the operations and financial condition of Computone in violation of generally accepted accounting principles. The complaint further alleged that Alba failed to make and keep accurate books and records, failed to establish and maintain adequate internal accounting controls, circumvented internal accounting controls, and misled Computone's independent auditors.   
+
+
+
+   E. On March 30, 2000, a final judgment of permanent injunction was entered against Alba, permanently enjoining him from violations of Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B) and 13(b)(5) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13, 13b2-1 and 13b2-2 thereunder.  Alba consented to the entry of the injunction without admitting or denying the violations. 
+
+ IV. 
+
+   Based upon the foregoing, the Commission deems it appropriate and in the public interest to accept the Offer submitted by Alba and accordingly, 
+
+   IT IS HEREBY ORDERED that Alba is denied the privilege of appearing or practicing before the Commission as an accountant.  After five years from the date of this order, Alba may request that the Commission consider his reinstatement by submitting an application (attention: Office of the Chief Accountant) to resume appearing or practicing before the Commission as: 
+
+
+
+             1.  a preparer or reviewer, or a person responsible for the preparation or review, of any public company's financial statements that are filed with the Commission. Such application must satisfy the Commission that Alba's work in his practice before the Commission will be reviewed either by the independent audit committee of the public company for which he works or in some other manner acceptable to the Commission; and/or      
+
+             2.  an independent accountant. Such an application must satisfy the Commission that: 
+
+                     (a) Alba, or the firm with which he is associated, is a member of the SEC Practice Section of the American Institute of Certified Public Accountants Division for CPA Firms ("SEC Practice Section"); 
+
+                     (b) Alba or the firm has received an unqualified report relating to his or the firm's most recent peer review conducted in accordance with the guidelines adopted by the SEC Practice Section; and  
+
+                     (c) As long as Alba appears or practices before the Commission as an independent accountant he will remain either a member of the SEC Practice Section or associated with a member firm of the SEC Practice Section, and will comply with all applicable SEC Practice Section requirements, including all requirements for periodic peer reviews, concurring partner reviews, and continuing professional education. 
+
+                   3. The Commission's review of any application by Alba to resume appearing or practicing before the Commission may include consideration of, in addition to the matters referenced above, any other matters relating to Alba's character, integrity, professional conduct, or qualifications to appear or practice before the Commission.  
+
+   By the Commission 
+
+                 Jonathan G. Katz
+                 Secretary 
+  Footnotes 
+
+
+
+   1     Rule 102(e) provides in relevant part: 
+
+The Commission, with due regard to the public interest and without preliminary hearing, may, by order, temporarily suspend from appearing or practicing before it any... accountant...who has been by name...[p]ermanently enjoined by any court of competent jurisdiction , by reason of his or her misconduct in an action brought by the Commission, from violating or aiding and abetting the violation of any provision of the Federal securities laws or the rules and regulations thereunder.
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1281.txt b/raw/aaer/2000/AAER-1281.txt
new file mode 100644
index 0000000000000000000000000000000000000000..5be4b868d5223b00217d439cdbcc6359d8c1541e
--- /dev/null
+++ b/raw/aaer/2000/AAER-1281.txt
@@ -0,0 +1,1535 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Ronald G. Davies 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359421","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Ronald G. Davies
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Ronald G. Davies
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+                    
+
+
+     UNITED STATES OF AMERICA
+   Before the
+   SECURITIES AND EXCHANGE COMMISSION 
+
+  SECURITIES EXCHANGE ACT OF 1934
+ Release No.   42987 / June 29, 2000 
+
+ AUDITING AND ACCOUNTING ENFORCEMENT
+ Release No.  1281 / June 29, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No. 3-10244 
+
+ 
+      
+In the Matter of 
+  
+Ronald G. Davies,   Respondent.  
+   
+
+  : : : : : : : :   
+   
+  
+ORDER INSTITUTING PUBLIC
+ CEASE-AND-DESIST PROCEEDING,
+ MAKING FINDINGS, AND ISSUING
+ A CEASE-AND-DESIST ORDER
+ AGAINST RONALD G. DAVIES
+ 
+     I. 
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate that a public cease-and-desist proceeding be instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Ronald G. Davies. 
+
+   Accordingly, IT IS HEREBY ORDERED that a cease-and-desist proceeding against Davies be, and hereby is, instituted. 
+
+ II. 
+
+   In anticipation of the institution of this proceeding, Davies has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings contained herein except that Davies admits the jurisdiction of the Commission over him and over the subject matter of this proceeding, Davies consents to the issuance of this Order Instituting Public Cease-and-Desist Proceeding, Making Findings and Issuing a Cease-and-Desist Order ("Order"). 
+
+ III. 
+
+   On the basis of this Order and the Offer, the Commission makes the following findings:  1   
+
+ A.  Nature of Proceeding  
+
+ 1.  This matter concerns a misleading audit confirmation sent by a customer of Hybrid Networks, Inc. ("Hybrid" or the "Company"), a Silicon Valley technology company.  In late 1997, Ronald Davies, an Executive Vice President of Ikon Office Solutions ("Ikon"), participated in Ikon's purchase of a substantial quantity of products from Hybrid.  As part of that transaction, Davies obtained a letter from Hybrid's sales representative providing Ikon an absolute right to return any products purchased from Hybrid (the "side letter").  In early 1998, Davies learned information that should have alerted him to the fact that Hybrid's sales personnel had concealed the existence of the side letter from the Company's management and auditors.  When Hybrid and its auditors, as part of the preparation of the Company's financial statements, sought confirmation that Ikon had received no right of return, Davies provided a misleading audit response to the Company.  
+
+ B.  Respondent  
+
+ 2.   Ronald G. Davies , 44, is a resident of a resident of Sandy, Utah.  He was an Executive Vice President of Ikon Office Solutions during the relevant period.  Davies is currently serving as an officer of a privately held company. 
+
+ C.  Related Entities  
+
+ 3.   Hybrid Networks, Inc.  is a Delaware corporation headquartered in San Jose, California.  The Company designs, manufactures and markets cable and wireless systems that provide access to the Internet.  For the fiscal year ended December 31, 1997, Hybrid recognized $14.3 million in revenue, which the Company subsequently restated to $4.1 million. 
+
+  4.   Ikon Office Solutions  is an Ohio corporation headquartered in Malvern, Pennsylvania.  Among other things, Ikon acts as a distributor of office supplies to businesses.  Ikon was Hybrid's largest customer during the relevant period, accounting for over a third of Hybrid's revenue for the fourth quarter of fiscal 1997.
+
+  D.  Ikon's December 1997 Purchases From Hybrid 
+
+  5.  In December 1997, Davies engaged in negotiations with Hybrid's sales personnel for Ikon to act as a distributor of Hybrid's products.  At the time, Ikon did not have any established customers for Hybrid's products, and did not have a history of selling Hybrid's products.  Davies expressed concern about Ikon accepting responsibility to pay for products which Ikon might not be able to resell to end-users.
+
+  6.  On December 22, 1997, pursuant to Davies' request, Hybrid's sales representative sent a letter to Ikon providing Ikon with an absolute right to return any Hybrid products which remained in Ikon's inventory in April 1998.
+
+  7.  On December 23, Ikon sent a $1.5 million purchase order to Hybrid.  The purchase order included the notation, "Special pricing per letter dated 12-22-97," and attached a copy of the side letter.  
+
+  8.   On December 31, Ikon agreed to purchase an additional $242,000 in products based on representations from Hybrid's sales personnel that this purchase was necessary to help Hybrid meet its revenue expectations.  Davies was assured that the December 31 purchase was subject to the right of return set forth in the December 22 side letter.
+
+  9.  Hybrid's sales personnel understood that Hybrid would be unable to recognize some or all of the revenue associated with the Ikon transaction if the sale were subject to a right of return.  Without Davies' knowledge, certain Hybrid sales personnel removed the December 22 side letter from the Company's files and altered the December 23 purchase order to delete the reference to the side letter.
+
+  E.  The Product Returns And Misleading Audit Confirmation  
+
+  10.  On March 25, 1998, Hybrid sent Ikon an audit confirmation request asking Ikon to confirm to the Company's auditors that Ikon had received no side letters modifying the terms of its purchase orders, and had been granted no right to return products purchased from Hybrid.  During this time, the statements and behavior of Hybrid's sales personnel should have indicated to Davies that Hybrid's management and auditors were unaware of the December 22 side letter.  Davies did not respond to the audit confirmation request sent by Hybrid.
+
+  11.  On March 31, 1998, notwithstanding Ikon's failure to respond to the audit confirmation request, Hybrid filed its Form 10-K for the year ended December 31, 1997.  The financial statements filed with the 10-K included approximately $1.8 million in revenue for the December shipments to Ikon.  These shipments (which, combined, constituted the largest transaction in Hybrid's history) accounted for 35% of Hybrid's revenue for the fourth quarter, and 15% of Hybrid's revenue for the year.
+
+  12.   By April 1998, Ikon had been unsuccessful in its efforts to resell the Hybrid products to end-users.  Davies sent a letter to Hybrid requesting authorization to return the products.  At the request of Hybrid's sales personnel, Davies drafted the return request to avoid any reference to the right of return provided by the December 22 side letter. 
+
+  13.  In order to accommodate its largest customer, Hybrid's management agreed to accept the product returns from Ikon.  Nonetheless, Hybrid's management and auditors once again sought confirmation that Ikon had received no contractual right of return at the time of the December transactions. 
+
+  14.  On May 19, 1998, Hybrid's Chief Executive Officer sent a letter to Ikon asking for written confirmation that there were no side letters or oral agreements which modified Ikon's purchase orders, and that Ikon had not been granted any right to return the products it purchased from Hybrid.  The letter stated that the confirmation was necessary for the completion of Hybrid's financial statements. 
+
+  15.  Hybrid's sales personnel asked Davies to conceal the existence of the December 22 side letter from Hybrid's management.  While Davies refused to lie about the side letter, he sent an e-mail message to Hybrid's Chief Executive Officer stating that "we do not have an outside agreement beyond our purchase orders which you already have in house." 
+
+  16.  Davies knew or was reckless in not knowing that his e-mail message of May 19 was misleading.  Davies knew, based on Hybrid's inquiries about the right of return and the requests from Hybrid's sales personnel to conceal the existence of the side letter, that the December 22 side letter had somehow been concealed from Hybrid's management and auditors, and he furthered the concealment by failing to clarify the matter.
+
+  17.  Following the receipt of Davies' letter, Hybrid's management and auditors concluded that Hybrid's financial statements for the year ended December 31, 1997 were fairly stated and that the Ikon product returns did not require a restatement of the 1997 financial statements. 
+
+  18.  On June 1, 1998, Hybrid filed its Form 10-Q for quarter ended March 31, 1998.  The filing stated that Hybrid had established an allowance "for sales recorded in 1997. . . to distributors who, although generally not having the contractual right to return the products purchased, have requested or indicated that they might request the Company to accept the return of certain of those products." 
+
+  F.  Davies Caused Violations Of The Exchange Act And The Regulations Thereunder 
+
+  19.  Section 10(b) of the Exchange Act and Rule 10b-5 thereunder prohibit material misrepresentations or omissions in connection with the purchase or sale of securities.  Section 13(a) of the Exchange Act and Rules 12b-20 and 13a-13 require issuers of registered securities to file accurate reports with the Commission.  Section 13(b)(5) of the Exchange Act provides that no person shall knowingly circumvent or knowingly fail to implement a system of internal accounting controls or knowingly falsify certain books, records and accounts.  Rule 13b2-1 thereunder provides that no person shall falsify or cause to be falsified any book, record or account, and Rule 13b2-2 prohibits any officer or director from making or causing to be made a materially false or misleading statement or omitting or causing a person to omit material facts in connection with an audit, examination of financial statements, or the preparation or filing of documents with the Commission.
+
+  20.   Hybrid and certain of its personnel violated the above provisions by, among other things, making false statements in the Company's Form 10-Q for the quarter ended March 31, 1998 relating to the Ikon returns, circumventing Hybrid's internal controls, falsifying the Company's books and records, and making materially false statements in connection with the preparation of the Company's financial statements.
+
+  21.  Davies' actions described above allowed Hybrid personnel to circumvent internal controls and make false statements to the Company's auditors, and caused Hybrid to make material misrepresentations and file inaccurate reports with the Commission.
+
+  22.  Based on the foregoing, Davies caused violations of Sections 10(b), 13(a), and 13(b)(5) of the Exchange Act and Rules 10b-5, 12b-20, 13a-13, 13b2-1, and 13b2-2 thereunder. 
+
+   IV. 
+
+   Based on the foregoing, the Commission deems it appropriate to accept the Offer submitted by Davies.  Accordingly, IT IS HEREBY ORDERED pursuant to Section 21C of the Exchange Act that: 
+
+ Davies cease and desist from committing or causing any violations or any future violations of Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5, 13b2-1 and 13b2-2 thereunder, and from causing any violations or any future violations of Section 13(a) of the Exchange Act and Rules 12b-20 and 13a-13 thereunder. 
+
+   By the Commission. 
+
+                          Jonathan G. Katz
+              Secretary  
+  Footnote 
+
+
+   1      The findings herein are made pursuant to Davies' Offer and are not binding on any other person or entity in this or any other proceeding. 
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1282.txt b/raw/aaer/2000/AAER-1282.txt
new file mode 100644
index 0000000000000000000000000000000000000000..fb004ff06427fbe53a69e019c91cf9f5ee211bdf
--- /dev/null
+++ b/raw/aaer/2000/AAER-1282.txt
@@ -0,0 +1,1383 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Ronald G. Davies 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483576","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Ronald G. Davies
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Ronald G. Davies
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              UNITED STATES SECURITIES AND EXCHANGE COMMISSION 
+
+ Litigation Release No.    16614 / June 29, 2000 
+
+   Accounting and Auditing Enforcement Release No. 1282  
+
+  SECURITIES AND EXCHANGE COMMISSION v. HYBRID NETWORKS, INC., CARL S. LEDBETTER, GUSTAVO EZCURRA, AND CRAIG STEIN, United States District Court for the Northern District of California, San Jose Division, Civil Action No.:  C-00-20718-PVT  
+
+  S.E.C. CHARGES SILICON VALLEY COMPANY AND FORMER EXECUTIVES WITH FALSELY INFLATING REVENUE FOR 1997 IPO  
+
+   The United States Securities and Exchange Commission ("Commission") today sued Hybrid Networks, Inc. ("Hybrid" or the "Company"), a San Jose-based manufacturer of cable and wireless Internet access systems, for issuing false financial statements in connection with its November 1997 initial public offering and for the first quarter following the IPO.  The Commission also charged former Vice President of Sales Gustavo Ezcurra and former Regional Sales Director Craig Stein with fraud in connection with the issuance of the false financial statements.  In addition, the Commission charged former President and Chief Executive Officer Carl S. Ledbetter with failing to implement internal accounting controls reasonably sufficient to prevent the fraud.  In a related administrative proceeding, the Commission charged Ronald G. Davies, a former executive for one of Hybrid customers, with being a cause of the fraud. 
+
+   Simultaneous with the filing of the Commission's lawsuit, Hybrid and each of the individual defendants consented, without admitting or denying the allegations in the complaint, to the issuance of injunctions against future violations of the federal securities laws.  In addition, Ledbetter, Ezcurra and Stein agreed to pay civil penalties of $50,000 each.  Davies also consented, without admitting or denying the findings in the Commission's administrative order, to cease and desist from future violations of the federal securities laws. 
+
+ The Commission alleges that Hybrid falsely inflated its 1997 revenue and income through a series of improper and fraudulent transactions.  Hybrid subsequently restated its financial results for the period, reducing 1997 revenue from $14.3 million to $4.1 million (representing a 249% overstatement of revenue) and increasing net loss from $13.6 million to $21.6 million (representing a 37% understatement of net loss).  The Company's rapidly deteriorating financial situation led to a decline in Hybrid's stock price from a post-IPO high of $24 to approximately $2 before NASDAQ delisted the Company in December 1998. 
+
+ The Commission's complaint alleges that Hybrid boosted its revenue and income by improperly recording revenue on shipments that customers had a right to return, on shipments "parked" with third parties until the intended customer was prepared to make the purchase, and on shipments of products which customers had not ordered or which did not function properly.  For example, at the end of 1997, with Hybrid's revenue forecasts falling far short of analysts' expectations, the Company shipped $1.8 million in products to a distributor.  This sale alone - Hybrid's largest ever - accounted for over a third of the quarter's revenue, and 15% of the revenue for the year.  As part of the deal, Regional Sales Director Stein sent the distributor a secret side letter providing an absolute right to return the products, which made it improper for Hybrid to recognize revenue on the transaction.  Stein and Vice President of Sales Ezcurra then concealed the side letter from Hybrid's senior management and auditors.  CEO Ledbetter, while unaware of the side letter, disregarded other facts that called into question the validity of the sale.  Davies, who was then an Executive Vice President at the distributor, misled Hybrid's senior management and auditors by failing to disclose the side letter when he was asked by the Company to confirm the terms of the sale. 
+
+ Each defendant consented to injunctions against violations of the following provisions: 
+
+
+ Hybrid: 
+  Periodic reporting and books and records (Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 12b-20, 13a-1, and 13a-13 thereunder); 
+
+ Ledbetter: 
+  Periodic reporting, books and records, and internal controls (Sections 13(a), 13(b)(2)(A), 13(b)(2)(B), and 13(b)(5) of the Exchange Act and Rules 12b-20, 13a-1, 13a-13 and 13b2-1 thereunder); 
+
+ Ezcurra: 
+  Fraud, periodic reporting, books and records, internal controls and representations to auditors (Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B), and 13(b)(5) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13, 13b2-1 and 13b2-2 thereunder); and 
+
+ Stein: 
+  Fraud, periodic reporting, books and records and internal controls (Section 17(a) of the Securities Act of 1933, Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B), and 13(b)(5) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13 and 13b2-1 thereunder). 
+
+ In the related administrative proceeding, Davies consented to the entry of a Commission order to cease and desist from committing or causing violations of the provisions governing fraud, periodic reporting, internal controls and representations to auditors (Sections 10(b), 13(a), and 13(b)(5) of the Exchange Act and Rules 10b-5, 12b-20, 13a-13, 13b2-1, and 13b2-2 thereunder).  In the Matter of Ronald G. Davies, Securities Exchange Act of 1934 Rel. No. 42987, Auditing and Accounting Enforcement Rel. No. 1281, Administrative Proceeding File No. 3-10244 (June 28, 2000). 
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1283.txt b/raw/aaer/2000/AAER-1283.txt
new file mode 100644
index 0000000000000000000000000000000000000000..d249398ad1fbf2c12cee3659a61aaca328ba0fb7
--- /dev/null
+++ b/raw/aaer/2000/AAER-1283.txt
@@ -0,0 +1,1564 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Allegheny Health, Education and Research Foundation 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359416","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Allegheny Health, Education and Research Foundation
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Allegheny Health, Education and Research Foundation
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.     42992 / June 30, 2000        
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.      1283 / June 30, 2000        
+
+ ADMINISTRATIVE PROCEEDING
+ File No.  3-10245 
+      
+In the Matter of 
+   
+Allegheny Health, Education 
+and Research Foundation,
+  Respondent.  
+   
+
+   : : : : : : : :    
+   
+   
+ORDER INSTITUTING  
+CEASE-AND-DESIST 
+PROCEEDINGS, MAKING  
+FINDINGS, AND IMPOSING 
+CEASE-AND-DESIST ORDER 
+   
+     
+   I.  
+
+   The Securities and Exchange Commission deems it appropriate that cease-and-desist proceedings be instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Allegheny Health, Education and Research Foundation ("AHERF"). 
+
+  II.  
+
+   In anticipation of the institution of these proceedings, AHERF has submitted an Offer of Settlement that the Commission has determined to accept.  Solely for the purpose of these proceedings, and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, AHERF, without admitting or denying the findings contained herein, except that it admits to the jurisdiction of the Commission over it and over the subject matter of these proceedings, consents to the entry of the findings and the issuance of this Order Instituting Cease-and-Desist Proceedings, Making Findings, and Imposing Cease-And-Desist Order.   
+
+   Accordingly, IT IS ORDERED that proceedings against AHERF be, and hereby are, instituted.  
+
+              III.  
+
+   On the basis of this Order and the Offer submitted by AHERF, the Commission finds that:  1   
+
+  A. Respondent     AHERF  .  AHERF is a Pennsylvania nonprofit healthcare organization formed in 1983.  AHERF was the parent holding company and sole member or owner of numerous subsidiaries.  2    On July 21, 1998, AHERF instituted bankruptcy proceedings under Chapter 11 of the United States Bankruptcy Code on behalf of itself and four of these subsidiaries in the U.S. District Court for the Western District of Pennsylvania.   B. Facts   
+
+    1.  Summary    
+
+ This matter involves actions by senior executives at AHERF, at its height the largest nonprofit health care organization in Pennsylvania, to grossly overstate the income of AHERF and some of its subsidiaries, thereby masking the enterprise's deteriorating financial condition.  On July 21, 1998, AHERF and four of its subsidiaries filed for protection under Chapter 11 of the U.S. Bankruptcy Code. However, from at least December 1996 through February 1998, AHERF and some of its subsidiaries collectively known as the Delaware Valley Obligated Group ("Delaware Valley") issued annual financial statements and municipal securities disclosure reports that materially misrepresented, among other things, AHERF's and Delaware Valley's net income.  AHERF, through certain members of its senior management and in violation of Generally Accepted Accounting Principles ("GAAP"): (i) overstated Delaware Valley's 1996 net income before extraordinary item and change in accounting principle by approximately $40 million by failing to adjust Delaware Valley's bad debt reserves to account for uncollectible accounts receivable; (ii) overstated Delaware Valley's and its own 1997 net income through the inappropriate transfers of approximately $99.6 million in reserves that were utilized to address the bad debt reserve shortfall not addressed in 1996, as well as an additional shortfall in 1997; and (iii) overstated its 1997 net income by misclassifying certain restricted trust funds.  The misclassification of the restricted funds and the transfers resulted in the overstatement of AHERF's consolidated net income for the period ended June 30, 1997 by approximately $114.3 million.  Significantly, both Delaware Valley and AHERF would have posted substantial net losses for fiscal year 1997 without the fraudulent activity.  3    Among the victims were investors holding more than $550 million of publicly offered bonds issued by or on behalf of three of the bankrupt subsidiaries.     
+
+     2. Background   
+
+ Before its bankruptcy in July 1998, AHERF was a Pittsburgh-based collection of non-profit acute-care hospitals, a medical university, physician practice groups, and numerous other affiliated entities.  From 1987 to 1997, AHERF expanded rapidly, acquiring other non-profit healthcare organizations, including several in the Philadelphia metropolitan area: the Medical College of Pennsylvania, United Hospitals, Inc., Hahnemann University Hospital and the Graduate Health System ("Graduate").  Acquired entities became direct or indirect subsidiaries of AHERF.  As an umbrella holding company, AHERF managed and provided centralized corporate support services for the acquired entities, but did not assume liability for their pre-existing debt.  The obligation to repay debt within AHERF was placed on collections of one or more of its non-profit subsidiaries known as "obligated groups."  Each subsidiary within an obligated group was jointly and severally liable for the debt of that obligated group.  By 1997, AHERF had five obligated groups :   Allegheny General Hospital ("Allegheny General"),   Allegheny University Medical Centers, Delaware Valley, Allegheny Hospitals, Centennial ("Centennial"), and Allegheny Hospitals, New Jersey.   
+
+ On July 21, 1998, AHERF filed for protection under Chapter 11 of the U.S. Bankruptcy Code in U.S. District Court for the Western District of Pennsylvania on behalf of itself, the Delaware Valley hospitals and university, the Centennial hospitals and the Allegheny University Medical Practices.  According to the bankruptcy petition and supporting documents, AHERF and these subsidiaries accumulated $1.3 billion in outstanding debt.  The outstanding debt included approximately $396 million of publicly offered bonds issued by or on behalf of Delaware Valley and $154.3 million of publicly offered bonds issued on behalf of Graduate and assumed by the Centennial Hospitals.  On September 2, 1998, following substantial media coverage about the bankruptcy, AHERF issued a press release in which it acknowledged that its audited financial statements for 1997 were inaccurate.  In the release, AHERF stated that "[n]o further reliance should be placed on the financial statements" or upon the accompanying report prepared by AHERF's independent auditor.   
+
+    3.  AHERF's Continuing Disclosure Obligations   
+
+ By the time of the bankruptcy in July 1998, AHERF's obligated groups were responsible for at least thirteen bond issues, with outstanding debt of more than $900 million.  4    The individual issues ranged from $12.7 million to $306 million, the latter incurred on behalf of Delaware Valley in a 1996 refinancing of its older bonds (the "Delaware Valley refinancing").  At least $400 million of AHERF bonds were not credit enhanced, meaning that they were not supported by a letter of credit or bond insurance.  The obligated groups, through AHERF as their agent, provided to nationally recognized repositories annual Secondary Market Disclosure Reports ("Disclosure Reports") containing audited financial statements, debt coverage ratios and other information with respect to certain of its obligated groups.  5    These Disclosure Reports were made available to the public through these repositories and were the most easily accessible source of information for investors and potential investors in AHERF bonds.  The obligated groups also were required by contract to periodically disclose financial information to, among others, credit enhancers and bond trustees, and some of the agreements required certifications by company officers as to the accuracy of the submitted information.  
+
+     4.  Misrepresentations in Financial Statements and Disclosure Documents  
+
+ AHERF's rapid growth and consequent debt left it with significant pressures to maintain stable financial results and positive net income.  It was in this environment that AHERF, through certain of its senior officers and in violation of applicable accounting principles, misstated its financial statements and schedules to overstate the 1996 and 1997 net income of AHERF, including that of some of its subsidiaries, in materials disseminated to the public, including investors and potential investors in the various AHERF bonds. 
+
+       a. AHERF's Financial Reporting Function   
+
+ At all relevant times, AHERF's financial reporting function, including the initial preparation of financial statements, was primarily handled by AHERF's Corporate Support Services Department (the "Accounting Department").  This department was under the control of AHERF's Chief Financial Officer, who reported to AHERF's Chief Executive Officer.  Significant aspects of the financial reporting function also were the responsibility of other departments or entities within AHERF.  For example, separate AHERF entities each had their own Chief Executive Officers and Chief Financial Officers.  These individuals also participated, to varying degrees, in AHERF's financial reporting.    
+
+       b. The 1996  $40,000,000 Overstatement   
+
+ In October 1996 AHERF decided to write off approximately $81 million in Delaware Valley uncollectible accounts receivable.  This decision was made more than two months prior to AHERF's issuance of Delaware Valley's 1996 financial statements and was based on information that indicated that the accounts receivable were impaired as of Delaware Valley's June 30, 1996 balance sheet date.  This write off would have necessitated an approximately $40 million increase to Delaware Valley's bad debt reserve and bad debt expense.  Despite this, and in violation of GAAP, AHERF failed to adjust Delaware Valley's bad debt reserve as of June 30, 1996, resulting in a $40 million overstatement of Delaware Valley's net income before extraordinary item and change in accounting principle and corresponding misstatements in the 1996 Delaware Valley Disclosure Report.    
+
+ During fiscal year 1996, AHERF senior management was aware of substantial increases in, and collection problems with, Delaware Valley's patient accounts receivable.  They attempted to diagnose and address this issue through, among other things, changes in management and internal meetings.  By early fall 1996 AHERF decided to write off approximately $81 million in Delaware Valley patient accounts receivable.  6    It then implemented a plan by which to write those accounts off in quarterly installments, beginning in October 1996.  Although Delaware Valley's reserve for bad debts was insufficient at June 30, 1996, AHERF made no effort to adjust the 1996 financial statements, which were being finalized contemporaneously with this decision to write off $81 million.  Under GAAP, Delaware Valley should have increased its bad debt reserve.  7    AHERF ultimately determined that the bad debt reserve shortfall as of June 30, 1996 was approximately $40 million.  This shortfall calculation was based upon the $81 million write off and its effect on Delaware Valley's bad debt reserve, using Delaware Valley's methodology for computing its bad debt reserve.     
+
+ Between December 12, 1996 and January 7, 1997, AHERF distributed Delaware Valley audited financial statements and 1996 Disclosure Report to the public.  Appropriately adjusting Delaware Valley's bad debt reserve would have, among other things, reduced its reported net income of $27 million before extraordinary item and change in accounting principle by approximately $40 million and similarly reduced its reported net accounts receivable figure of $253 million by approximately $40 million.  Moreover, the management discussion and analysis ("MD&A") portion of the Disclosure Report implied that the $72.2 million increase in Delaware Valley accounts receivable during fiscal year 1996 was a temporary phenomenon that would resolve itself upon completion of Patient Billing department consolidation and conversion.  In addition, the referenced patient accounts receivable figure, taken from the Delaware Valley balance sheet, should have represented amounts that, in the judgment of AHERF, were still collectible.  However, months before the date of the Disclosure Report, AHERF knew or was reckless in not knowing that accounts receivable were overstated by, at least, $40 million, and that the primary cause of the increase in net accounts receivable was, in fact, the failure of AHERF to adequately increase Delaware Valley's bad debt reserve.  Increasing the bad debt reserve would have, in turn, decreased the Delaware Valley net accounts receivable figure on its balance sheet.  Despite this knowledge, AHERF did not correct the misstatement and, by not doing so, hid the misstatements contained in the Delaware Valley fiscal 1996 audited financial statements and the financial information contained within the Disclosure Report.   
+
+       c.  The 1997 $114,300,000 Overstatement  
+
+ The AHERF consolidated financial statements and consolidating schedules for fiscal year 1997 overstated both AHERF and Delaware Valley net income through AHERF's inappropriate transfer of $99.6 million from the Graduate Hospitals to the Delaware Valley and its misclassification of $54.7 million in trust funds.  Correcting both misstatements, AHERF's reported consolidated net income was overstated by approximately $114.3 million.   Moreover, AHERF's 1997 Disclosure Report included misstatements pertaining to the decrease in Delaware Valley accounts, as well as misleading narrative information about intercompany account balances and restructuring expenses. 
+
+        i) The Transfer of $99.6 Million in Reserves   
+
+ The failure to address the accounts receivable problems described above in fiscal year 1996 and the continued deterioration of accounts receivable in fiscal year 1997 resulted in approximately $111 million of write offs of uncollectible accounts receivable by June 30, 1997.  However, Delaware Valley did not have sufficient bad debt reserves in fiscal year 1997 to absorb $111 million in write offs and still maintain an adequate bad debt reserve under GAAP for its remaining accounts receivable.  Proper accounting treatment under GAAP required increasing these reserves through bad debt expense, thereby decreasing Delaware Valley's net income.  8    In violation of GAAP, AHERF increased Delaware Valley's reserves without recognizing the corresponding charge to income.  Specifically, during the third and fourth quarters of fiscal 1997, AHERF, through a series of intercompany transactions, transferred to Delaware Valley $99.6 million of reserves from various Graduate hospitals.  9    Although AHERF did this to address Delaware Valley's bad debt reserve shortfall, $40 million of that shortfall properly was attributable to fiscal year 1996.  During the time the transferred reserves were established, the Graduate hospitals were held in a separate company controlled by AHERF that was not included in the AHERF consolidated financial statements.  10    As a result, AHERF and Delaware Valley avoided the negative earnings impact of establishing the reserves required under GAAP. 
+
+ By virtue of the transfer of reserves from the Graduate hospitals to Delaware Valley to cover bad debt, the AHERF 1997 audited consolidated financial statements, distributed to the public on or about February 6, 1998, overstated reported net income of $21.9 million by, approximately, $59.6 million.  11    Similarly, Delaware Valley 1997 reported net income of $23.7 million, reflected on the consolidating schedules, was overstated by, approximately, $59.6 million.  Moreover, as part of the bond agreements, AHERF certified to bond trustees and others that, among other things, the 1997 financial statements were prepared in conformity with GAAP. 
+
+ The 1997 Disclosure Report, also distributed to the public on or about February 6,1998, mirrored the numbers contained in the 1997 financial statements, thereby repeating the misstatements described above.   Moreover, the MD&A discussion for Delaware Valley attributed a $50.7 million decrease in patient accounts receivable to enhanced patient accounts receivable collection and more cost effective billing and accounts receivable management.  In fact, accounts receivable decreased in 1997 by virtue of the transfers from the Graduate reserves, not an improved collection process.  
+
+   Moreover, Centennial was portrayed more negatively than its financial condition warranted.  12    The MD&A discussion for the Centennial Hospitals attributed $46.1 million in restructuring costs to "the recognition of reserves for patient accounts receivable third-party reimbursement issues, inventory obsolescence, pension costs and self insurance reserves for malpractice and workers' compensation claims."  In fact, at least $28.4 million of these reserves were considered excess at June 30, 1997 and were utilized for a different, undisclosed purpose - covering Delaware Valley's bad debt reserve shortfall.  13    Moreover, the MD&A section attributes a change from a $48.8 million  receivable  to a $100.2 million  payable  position in Centennial intercompany account balances to the inclusion of the intercompany balances of two new entities in the obligated group, intercompany charges for corporate support services and borrowings for operating and cash flow requirements, and the transfer of pension and self insurance liabilities from Centennial's balance sheet to AHERF.  Unmentioned are the reserve transfers to Delaware Valley, which for accounting purposes were treated from Centennial's perspective as an intercompany account payable.   
+
+        ii) The Misclassification of Trust Funds  
+
+ In fiscal year 1996, AHERF, through senior management, misclassified five irrevocable trusts held by an independent trustee known collectively as the "Lockhart Trusts," with a market value as of June 30, 1996 of $87.3 million.  14    Applicable state law and the trust documents provided that the capital gains attributable to the Lockhart Trusts were part of the corpus of the trust and accordingly inaccessible to AHERF. 
+
+ In adopting FAS 116,  15   AHERF misclassified the Lockhart funds by treating permanently restricted funds in the Lockhart Trusts as available to AHERF.  However, by early fiscal 1997 AHERF senior management had received notice that its classification of the Lockhart Trusts was incorrect.  In November 1996, AHERF senior management received and reviewed written notice from the independent trustee to the effect that the Lockhart Trust documentation explicitly provided that only income (and not capital gains) was available to AHERF.  In response, AHERF senior management discussed, but did not modify, the Lockhart Trust classification. In addition, for fiscal year 1997, AHERF improperly recognized $54.7 million from the Lockhart Trust assets as income.  16     As a result, without considering the impact of the Delaware Valley fraud described above, AHERF overstated its reported net income in its consolidated audited financial statements for 1997 by $54.7 million.  
+
+  C. Legal Discussion:  AHERF Violated Section 10(b) of the Exchange Act and Rule 10b-5 Thereunder 
+
+  Section 10(b) of the Exchange Act and Rule 10b-5 thereunder make it unlawful to make any untrue statement of material fact or to omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading.  Any issuer that releases information to the public that is reasonably expected to reach investors and trading markets will be subject to the antifraud provisions.   SEC v. Texas Gulf Sulphur Co ., 401 F.2d 833 (2d Cir. 1968), cert. denied sub nom,  Coates v. SEC , 394 U.S. 976 (1969). The antifraud provisions are equally applicable to disclosures in the secondary market for municipal securities.   See   Statement of the Commission Regarding Disclosure Obligations of Municipal Securities Issuers and Others , Exchange Act Rel. No. 33-7049, 1994 SEC LEXIS 700 (March 9, 1994).  
+
+ AHERF, through certain of its senior officers, violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.  As described above, AHERF materially overstated Delaware Valley's net income before extraordinary item and change in accounting principle by, approximately, $40 million, in the 1996 Delaware Valley audited financial statements and Disclosure Report.  It further overstated its consolidated net income by $114.3 million and Delaware Valley's net income by $59.6 million in the 1997 AHERF audited consolidated financial statements and consolidating schedules and the 1997 Disclosure Report.  In both Disclosure Reports, AHERF hid its true financial condition from the public through its misleading disclosures and omissions as to Delaware Valley accounts receivable, the transactions related to its transfer of $99.6 million from Graduate and its misclassification of the Lockhart Trusts.   Finally, its statements to trustees and others permitted AHERF to continue unchecked in its conduct.   
+
+  IV.  
+
+   In view of the foregoing, the Commission deems it appropriate to accept the Offer submitted by AHERF and accordingly: 
+
+   IT IS ORDERED pursuant to Section 21C of the Exchange Act that AHERF cease and desist from committing or causing any violations and any future violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. 
+
+   By the Commission. 
+
+               Jonathan G. Katz
+               Secretary 
+  Footnotes 
+
+
+
+   1     The findings herein are made pursuant to AHERF's Offer and are not binding on any other person or entity in this or any other proceeding. 
+
+   2     AHERF's underlying entities are referred to as "subsidiaries," although technically AHERF was their sole "member", not a shareholder. 
+
+   3      A reference to fiscal year 19xx is from July 1 of the previous year through June 30, 19xx.   
+
+   4      In order to take advantage of lower tax-exempt interest rates, the obligated groups generally borrowed money through various conduit public authorities.  The public authorities issued publicly offered tax-exempt municipal bonds on behalf of the obligated group.   The obligated group in turn assumed responsibility for repaying that debt. For convenience this order refers to the bonds as if the responsible obligated group, not the conduit public authority, issued them.  Approximately 41% of this debt was issued by or on behalf of Delaware Valley, 28% by or on behalf of Allegheny General, and 22% by or on behalf of Centennial and Allegheny Hospitals, New Jersey.  The remaining 9% was issued by or on behalf of Allegheny University Medical Centers and Canonsburg Hospital, the latter of which joined AHERF in  fiscal year 1998.    
+
+   5     See  Exchange Act Rule 15c2-12, which generally prohibits broker-dealers from underwriting primary offerings of municipal securities after July 1995 unless the issuer and/or an entity obligated to repay the debt contractually agrees to submit to national repositories annual Disclosure Reports as well as timely information concerning events, if material, such as principal and interest payment delinquencies, non-payment related defaults and rating changes.  AHERF provided annual Disclosure Reports for all of its obligated groups. 
+
+   6     Although this decision was made in the fall of 1996, the factors leading to this decision existed as of June 30, 1996. 
+
+   7    Pursuant to Statement of Financial Accounting Standards ("FAS") 5, an entity's bad debt reserve should reflect, at a given point in time, the estimated probable loss inherent in the entity's accounts receivable. On the balance sheet, the reserve is deducted from total accounts receivable (an asset of the entity) so that the resulting figure represents the net realizable value (i.e., the amount estimated to be collectible).  On the income statement, periodic increases in the reserve are reflected as charges against earnings.  FAS No. 5 further provides that events that occur subsequent to the balance sheet date (here, June 30, 1996) but prior to the issuance of the financial statements, provide additional evidence with respect to conditions that existed on the balance sheet date and affect the estimates inherent in the process of preparing financial statements.  
+
+   8    See discussion of FAS 5 in note 6, above.    
+
+   9     The Graduate hospitals in Pennsylvania joined AHERF as members of Centennial. The Graduate hospital in New Jersey became a separate subsidiary of AHERF known as Allegheny Hospitals, New Jersey.   Of the $99.6 million transferred,  $50 million was created as part of the purchase price computation and $29.9 million through charges and restructuring reserves.  The precise source of the remainder is unclear from the available records but it derived from some combination of purchase price adjustments, restructuring reserves and pre-existing Graduate reserves.    
+
+   10    AHERF used this separate entity to temporarily hold assets of acquired entities pending a determination whether to incorporate them into the AHERF system. 
+
+   11    Because $40 million of the $99.6 million shortfall should have been offset against Delaware Valley 1996 net income before extraordinary item and change in accounting principle, AHERF consolidated and Delaware Valley 1997 net income are only overstated by $59.6 million.   
+
+   12   In contrast to AHERF's 1997 consolidated audited financial statements, which included only two months of operations for Centennial, the 1997 Disclosure Report provided a full twelve months of financial results for Centennial, albeit on an unaudited basis.  
+
+   13     As stated above, $29.9 million of the reserves derived from Graduate restructuring reserves- $28.4 million from the Philadelphia hospitals (Centennial) and $1.5 million from the New Jersey hospital (Allegheny Hospitals, New Jersey).  Of course, any Graduate reserves deemed to be excess should have been eliminated by adjustments to Graduate's income statement or balance sheet, depending on whether those reserves were originally restructuring charges or part of the purchase price. 
+
+   14   Notwithstanding the misclassification described below, the investments held by the independent trustee were never actually liquidated or transferred.   
+
+   15     This standard required AHERF to reclassify all of its net assets as unrestricted, temporarily restricted, or permanently restricted.  Under FAS 116, permanently restricted net assets result from donor contributions whose use by AHERF is limited by donor-imposed stipulations that neither expire by passage of time nor can be fulfilled or otherwise removed by actions of the organization.  Temporarily restricted net assets result from donor contributions whose use by AHERF is limited by donor-imposed stipulations that either expire by passage of time or can be fulfilled and removed by actions of the organization pursuant to those stipulations.  Unrestricted net assets are those assets without donor-imposed stipulations. 
+
+   16    Under GAAP, the income statement for a non-profit entity includes as income funds released from restriction and used for operations.  Net income or loss is then shown to increase or decrease unrestricted net assets, as appropriate. 
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1284.txt b/raw/aaer/2000/AAER-1284.txt
new file mode 100644
index 0000000000000000000000000000000000000000..aa859435fcf97db1c0200f4171786df605619d67
--- /dev/null
+++ b/raw/aaer/2000/AAER-1284.txt
@@ -0,0 +1,1499 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Gerald Lee Pate 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359361","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Gerald Lee Pate
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Gerald Lee Pate
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.    43034 / July 13, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.    1284 / July 13, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No.  3-10251
+
+      
+In the Matter of   
+ 
+KEVIN T. KEARNEY, CPA,   
+Respondent.   
+   
+
+  : : : : : : : :   
+   
+ ORDER INSTITUTING PROCEEDINGS 
+PURSUANT TO RULE 102(e) OF THE 
+COMMISSION'S RULES OF PRACTICE, 
+MAKING FINDINGS, AND IMPOSING 
+REMEDIAL SANCTIONS
+      I.  
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate to institute public administrative proceedings pursuant to Rule 102(e) of the Commission's Rules of Practice  1   against Kevin T. Kearney ("Respondent" or "Kearney"), a certified public accountant. 
+
+  II.  
+
+   In anticipation of the institution of these administrative proceedings, Kearney has submitted an Offer of Settlement ("Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings, and any other proceedings brought by or on behalf of the Commission, or in which the Commission is a party, without admitting or denying the findings set forth below, except as to jurisdiction of the Commission over him and over the subject matter of these proceedings, which Respondent admits, Respondent consents to the entry of this Order Instituting Proceedings Pursuant to Rule 102(e) of the Commission's Rules of Practice, Making Findings, and Imposing Remedial Sanctions ("Order") set forth below. 
+
+   Accordingly, it is ordered that proceedings pursuant to Rule 102(e) of the Commission's Rules of Practice be, and hereby are, instituted. 
+
+  III.  
+
+   FACTS   
+
+   The Commission makes the following findings:  2   
+
+   A. Kevin T. Kearney, CPA, age 33, was a Manager of Financial Reporting at CUC International Inc. ("CUC") from 1993 until mid-1995, and then Director of Financial Reporting until March 1997, at which time he became Controller of Spark, a division of CUC.  Kearney is a certified public accountant licensed in the state of Connecticut.   
+
+   B. CUC, a Delaware corporation that had its headquarters in Stamford, Connecticut, was principally engaged in membership-based consumer services, such as auto, dining, shopping, and travel "clubs."  CUC's largest division, Comp-U-Card, marketed individual memberships in these clubs.  CUC's securities were registered pursuant to Section 12(b) of the Securities Exchange Act of 1934 ("Exchange Act") and traded on the New York Stock Exchange ("NYSE").  On December 17, 1997, CUC merged with HFS Incorporated to form Cendant Corporation.  Cendant's common stock and certain other securities issued by Cendant are registered pursuant to Section 12(b) of the Exchange Act and trade on the NYSE.  Certain additional securities issued by Cendant are registered pursuant to Section 12(g) of the Exchange Act. 
+
+   C. On June 14, 2000, the Commission filed a complaint against Kearney in SEC v. Cosmo Corigliano, Anne M. Pember, Casper Sabatino, and Kevin T. Kearney, 00 Civ. 2873 (D.N.J.).  On June 6, 2000, Kearney consented to the entry of the Final Judgment of Permanent Injunction and Other Relief as to Defendant Kevin T. Kearney ("Final Judgment"), without admitting or denying the allegations of the complaint, except as to subject matter jurisdiction, which he admitted.  On June 29, 2000, the United States District Court for the District of New Jersey entered the Final Judgment, which (1) permanently enjoins Kearney from (i) violating Section 13(b)(5) of the Exchange Act, and Exchange Act Rule 13b2-1; and (ii) aiding and abetting violations of Sections 10(b), 13(a), 13(b)(2)(A), and 14(a) of the Exchange Act, and Exchange Act Rules 10b-5, 12b-20, 13a-1, 13a-13, 13b2-2, and 14a-9; (2) orders him to disgorge ill-gotten gains of $32,443, plus prejudgment interest of $8,234; and (3) orders him to pay a civil money penalty of $35,000 pursuant to Section 21(d)(3) of the Exchange Act. 
+
+   D. The Commission's complaint alleges that, while Kearney was in the Financial Reporting group at CUC, he participated in a financial fraud at CUC to inflate its quarterly and annual earnings during the period from at least 1995 through early 1998.  Specifically, the complaint alleges the following:  He was regularly present when CUC's Chief Financial Officer calculated the fraudulent quarterly adjustments at the end of each of the first three fiscal quarters each year necessary to meet CUC's earnings targets.  Kearney supervised financial reporting personnel who entered the unsupported quarterly adjustments.  Kearney also had the job of canvassing the various CUC subsidiaries throughout the year to find out if the subsidiaries had "excess" reserves that CUC corporate could use to inflate operating income at CUC.  Kearney occasionally instructed controllers at CUC subsidiaries to make certain unsupported year-end entries directed by the CFO.  Kearney also aided and abetted certain officers or directors of CUC in making materially false or misleading statements to CUC's auditors in order to conceal the fraud, including the preparation of false schedules, statements, and other support for various entries and methodologies associated with the fraud. 
+
+  V.  
+
+   Based on the foregoing, the Commission finds that Kearney (a) willfully violated Section 13(b)(5) of the Exchange Act and Rule 13b2-1 promulgated thereunder; and (b) willfully aided and abetted violations of Sections 10(b), 13(a), 13(b)(2)(A), and 14(a) of the Exchange Act, and Rules 10b-5, 12b-20, 13a-1, 13a-13, 13b2-2, and 14a-9 promulgated thereunder. 
+
+  VI.  
+
+   In view of the foregoing, the Commission deems it appropriate to accept Kearney's Offer and to impose the sanctions agreed to therein. 
+
+   Accordingly,  IT IS HEREBY ORDERED  that pursuant to Rule 102(e) of the Commission's Rules of Practice 
+
+     1. Kearney be denied the privilege of appearing or practicing before the Commission as an accountant. 
+
+     2. After five years from the date of the Order, Kearney may request that the Commission consider his reinstatement by submitting an application (attention: Office of the Chief Accountant) to resume appearing or practicing before the Commission as: 
+
+             a. a preparer or reviewer, or a person responsible for the preparation or review, of any public company's financial statements that are filed with the Commission.  Such an application must satisfy the Commission that Kearney's work in his practice before the Commission will be reviewed either by the independent audit committee of the public company for which he works or in some other acceptable manner, as long as he practices before the Commission in this capacity; and/or 
+
+             b. an independent accountant.  Such an application must satisfy the Commission that:  (a) Kearney, or the firm with which he is associated, is a member of the SEC Practice Section of the American Institute of Certified Public Accountants Division for CPA Firms ("SEC Practice Section"); (b) Kearney, or the firm, has received an unqualified report relating to his, or the firm's, most recent peer review conducted in accordance with the guidelines adopted by the SEC Practice Section; and (c) as long as Kearney appears or practices before the Commission as an independent accountant he will remain either a member of the SEC Practice Section or associated with a member firm of the SEC Practice Section, and will comply with all applicable SEC Practice Section requirements, including all requirements for periodic peer reviews, concurring partner reviews, and continuing professional education. 
+
+     3. The Commission's review of an application by Kearney to resume appearing or practicing before the Commission may include consideration of, in addition to the matters referenced above, any other matters relating to Kearney's character, integrity, professional conduct, or qualifications to appear or practice before the Commission. 
+
+   By the Commission. 
+
+                 Jonathan G. Katz
+                 Secretary 
+  Footnote 
+
+   1     Paragraph 1 of Rule 102(e)(1) provides, in relevant part, that:
+
+  The Commission may . . . deny, temporarily or permanently, the privilege of appearing or practicing before it in any way to any person who is found by the Commission after notice and opportunity for hearing in the matter: . . . (iii) [t]o have willfully violated, or willfully aided and abetted the violation of any provision of the Federal securities laws or the rules and regulations thereunder. 
+
+   2    The Commission's findings herein are made pursuant to Respondent's Offer and are not binding upon any other person or entity in these or any other proceedings. 
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1285.txt b/raw/aaer/2000/AAER-1285.txt
new file mode 100644
index 0000000000000000000000000000000000000000..9bbf543af5822ea838a85864e80dfe4011db9fe0
--- /dev/null
+++ b/raw/aaer/2000/AAER-1285.txt
@@ -0,0 +1,1365 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | System Software Associates, Inc., Roger Covey and Joseph Skadra 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483641","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              System Software Associates, Inc., Roger Covey and Joseph Skadra
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        System Software Associates, Inc., Roger Covey and Joseph Skadra
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              U.S. SECURITIES AND EXCHANGE COMMISSION
+               Washington, D.C. 
+ Litigation Release No. 16627 / July 14, 2000
+    Accounting and Auditing Enforcement Release No. 1285 / July 14, 2000 
+
+  SECURITIES AND EXCHANGE COMMISSION v. SYSTEM SOFTWARE ASSOCIATES, INC., ROGER COVEY and JOSEPH SKADRA , Civ. No. 00C 4240 (July 13, 2000, N.D. Ill.) 
+
+   On July 13, 2000, the Securities and Exchange Commission filed a civil injunctive action against System Software Associates, Inc. ("SSA"); its former Chief Executive Officer and Chairman of the Board, Roger Covey; and its former Chief Financial Officer, Joseph Skadra, alleging fraudulent accounting practices that resulted in massive investor losses. 
+
+ The Complaint alleges that CEO Covey and CFO Skadra caused SSA to misstate its financial results during its fiscal years 1994 through 1996 by improperly reporting revenue on sales of a development-stage UNIX-language software product.  Those customers who purchased SSA's UNIX product during the relevant period experienced severe and continuing difficulties with its functionality and performance and in many instances rejected the product.  Because there existed significant uncertainties about customer acceptance of the product and collectibility of the contract price and significant vendor obligations remained, the earnings process was not complete and recognition of revenue on sales of the product was improper under applicable accounting standards. 
+
+  The Complaint also alleges that, during 1995 and 1996, in addition to the above fraudulent practice, SSA recognized approximately $52 million in revenue from sales of its UNIX product that were subject to side letters or other material contingencies.  
+
+   According to the Complaint, defendants' fraudulent activities resulted in substantial losses to those public investors who purchased SSA stock during the period when the company's financial statements were misstated.  During the relevant period, SSA's stock traded for as much as $45 per share, and the company's market capitalization reached $1.44 billion.  In January 1997, after SSA's independent auditors required it to restate revenues for 1994 and 1995, SSA's stock price declined to approximately $10 per share.  SSA is presently in a bankruptcy proceeding and its stock is virtually worthless. 
+
+   SSA, Covey, and Skadra are charged with violating or aiding and abetting violations of Section 17(a) of the Securities Act of 1933, Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5, 12b-20, 13a-1, and 13a-13 thereunder. Covey and Skadra, in addition, are charged with violating Section 13(b)(5) of the Exchange Act and Exchange Act Rules 13b2-1 and 13b2-2.  The Complaint seeks a Judgment of Permanent Injunction against all defendants and, in addition, civil penalties and disgorgement of salary bonuses from Covey and Skadra. 
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1286.txt b/raw/aaer/2000/AAER-1286.txt
new file mode 100644
index 0000000000000000000000000000000000000000..8ce0acc02adad12bd946ce1cb885bd1fb96f01ce
--- /dev/null
+++ b/raw/aaer/2000/AAER-1286.txt
@@ -0,0 +1,1365 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Michael A. Puhr 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483631","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Michael A. Puhr
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Michael A. Puhr
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION 
+
+ Litigation Release No. 16625 / July 13, 2000
+ Accounting and Auditing Enforcement Release No. 1286 / July 13, 2000 
+
+  SEC FILES COMPLAINT AND OBTAINS INJUNCTION AGAINST MICHAEL A. PUHR, FORMER CEO OF ROCKY MOUNTAIN INTERNATIONAL, LTD.  
+
+ Securities and Exchange Commission v. Michael A. Puhr, No. 00-2387-CIV-KING (S.D. Fla.) (filed July 6, 2000). 
+
+     The Securities and Exchange Commission (SEC) announced that on July 6, 2000, it filed a civil complaint against Michael A. Puhr of Westminster, Colorado, in connection with fraudulent statements made in certain press releases disseminated to the public, and filings made with the SEC, by Rocky Mountain International, Ltd. ("Rocky Mountain").  At the time of these false statements, Puhr was the chief executive officer and president of Rocky Mountain.  Simultaneously with the filing of the complaint, Puhr agreed to settle the charges against him by consenting to the entry of permanent injunctive relief, without admitting or denying the allegations in the complaint. 
+
+ In its complaint, the SEC alleges that in October 1997, Rocky Mountain filed false and misleading financial statements with the SEC and issued false press releases that were disseminated to the investing public.  In particular, Rocky Mountain filed a Form 8-K and issued a press release that falsely claimed that Rocky Mountain's assets were worth more than $21 million.  In contrast, the Company's assets were worth, at most, a third of that value.  In addition, the press releases also failed to disclose material information about Rocky Mountain's garment manufacturing operations.   
+
+ The complaint seeks permanent injunctive relief and civil money penalties from Puhr based on allegations that he violated Sections 10(b), 13(a), 13(b)(2) and 13(b)(5) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20 and 13a-11 thereunder.  Simultaneously with the filing of the SEC's complaint, Puhr agreed to settle the action against him by consenting, without admitting or denying any of the allegations contained in the SEC's complaint, to the entry of a permanent injunction against future violations of the sections and rules of the federal securities laws referred to above.  The SEC will not seek civil penalties from Puhr due to his demonstrated financial inability to pay.  United States District Judge James Lawrence King entered the permanent injunction against Puhr on July 10, 2000. 
+
+ Previously, the Commission suspended trading in Rocky Mountain's stock for a ten-day period effective December 22, 1997.  (See Securities Exchange Act No. 34-39471). 
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1287.txt b/raw/aaer/2000/AAER-1287.txt
new file mode 100644
index 0000000000000000000000000000000000000000..86c6369dceacd3de1228612016ecce781e4a3454
--- /dev/null
+++ b/raw/aaer/2000/AAER-1287.txt
@@ -0,0 +1,1527 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Guilford Mills, Inc. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359356","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Guilford Mills, Inc.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Guilford Mills, Inc.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934  
+
+ Release No.  43068 / July 24, 2000          
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+
+ Release No.   1287 / July 24, 2000          
+
+ ADMINISTRATIVE PROCEEDING  
+
+ File No.  3-10258 
+
+                                  
+  
+                              :
+                              : ORDER INSTITUTING CEASE-AND-
+      In the Matter of        : DESIST PROCEEDINGS PURSUANT
+                              : TO SECTION 21C OF THE
+     GUILFORD MILLS, INC.,    : SECURITIES EXCHANGE ACT
+                              : OF 1934 AND FINDINGS AND
+        Respondent.           : ORDER OF THE COMMISSION
+                              :  
+    
+
+    I.  
+
+   The Commission deems it appropriate to institute public administrative proceedings pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") to determine whether Respondent Guilford Mills, Inc. violated Sections 13(a) and 13(b)(2) of the Exchange Act and Rule 13a-13 thereunder. 
+
+    II.  
+
+   In anticipation of the institution of these administrative proceedings, Respondent has submitted an Offer of Settlement which the Commission has determined to accept.  Solely for purposes of these proceedings and any other proceedings brought by or on behalf of the Commission or to which the Commission is a party, Respondent, without admitting or denying the matters set forth herein, consents to the issuance of this Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934 and Findings and Order of the Commission ("the Order"), and to the entry of the findings, and the imposition of the remedial sanctions, set forth below. 
+
+    III.  
+
+   The Commission finds the following:  1   
+
+      A.  FACTS   
+
+      1. Respondent  
+
+    Guilford Mills, Inc.  ("Guilford") is a Delaware corporation with headquarters in Greensboro, North Carolina.  Guilford manufactures warp knit and knit lace fabrics at various facilities located in North America and Europe. Guilford's common stock is registered with the Commission under Section 12(b) of the Exchange Act and is traded on the NYSE.  For its fiscal year ended September 27, 1998, Guilford reported total revenues of $894.5 million and net income of $30.2 million.  As of September 30, 1998, Guilford had approximately 23.2 million shares of common stock outstanding. 
+
+   One of Guilford's subsidiaries is  Hofmann Laces , a textile operation with two manufacturing facilities located in upstate New York, which Guilford acquired in January 1996.  Before the company was acquired by Guilford, Hofmann Laces was a privately held company.  Since Guilford acquired Hofmann Laces, the financial results of Hofmann Laces have been included in the consolidated financial statements contained in Guilford's periodic reports filed with the Commission. 
+
+      2. Timothy J. Gaffney  
+
+    Timothy J. Gaffney  was the Controller of Hofmann Laces from May 1986 until September 1998.  During that period, Gaffney's responsibilities included maintaining the accounting books and records of Hofmann Laces and preparing the financial statements of Hofmann Laces.  2   
+
+      3. Guilford's Insufficient Internal   
+
+  Accounting Controls  
+
+  Following Guilford's acquisition of Hofmann Laces in January 1996, Guilford did not integrate the general ledger accounting system of Hofmann Laces into Guilford's existing accounting system.  No one from Guilford's accounting department reviewed the general ledger, general journal, or subsidiary ledgers (e.g., accounts payable) of Hofmann Laces until after Gaffney resigned from the company in September 1998.  3    Moreover, Guilford's internal audit staff did not perform any on-site review or inspection of the accounting system and control environment at Hofmann Laces.  Although Guilford's independent auditors performed a separate year-end audit of the financial statements of Hofmann Laces, these auditors were not engaged separately to examine or review the accounting system and internal controls at Hofmann Laces. 
+
+      4. Guilford's Inaccurate Books and Records and  
+
+        False and Misleading Quarterly Filings on Form 10-Q   
+
+  Between January 1997 and August 1998, Gaffney made a series of false journal entries to the general ledger of Hofmann Laces.  Gaffney generally made these entries while "closing" the books for Hofmann Laces at the end of a particular month.  None of the false entries had a proper accounting justification, and none was supported by any underlying documentation.  In a typical false entry, Gaffney would decrease a trade accounts payable account in a round-dollar amount ranging from $500,000 to $1.8 million, and credit a purchase account (cost of sales) in the same amount, which increased earnings.  Gaffney's false entries in the aggregate had the effect of materially understating accounts payable and materially overstating earnings at Hofmann Laces. 
+
+   Gaffney's false journal entries did not affect the financial results reported in Guilford's financial statements for the fiscal year ended September 28, 1997, because Gaffney reversed the false entries by the end of the fiscal year.  However, during the first three quarters of Guilford's fiscal year ended September 27, 1998, Gaffney did not reverse most of his false entries, and thus Guilford's financial statements for those quarters, which were included in Guilford's quarterly reports on Form 10-Q, were materially misstated.  Specifically, operating income from Guilford was overstated (before other adjustments) by $2,675,000 (or 18%) for the fiscal quarter ended December 28, 1997, by $3,605,000 (or 20%) for the fiscal quarter ended March 29, 1998, and by $2,725,000 (or 12%) for the fiscal quarter ended June 28, 1998.  The following table summarizes the effects of Gaffney's false journal entries, as restated:  4   
+
+  Guilford Mills, Inc. Operating Income  (in 000s)  
+    Quarter ended    Reported   Restated   Difference   % change    12/28/97    $ 14,687    $ 12,734   $ 1,953   - 13.3% 
+
+     3/29/98       17,820       17,156          664   -   3.7% 
+
+     6/28/98       22,003      22,520          517   + 2.3%    During the period when Gaffney was making these false entries in the general ledger of Hofmann Laces, he was also sending monthly reporting packages for Hofmann Laces to Guilford's headquarters in Greensboro, North Carolina.  Gaffney's monthly reporting packages included formal financial statements, supplemental schedules, and sales and inventory information.  Certain of these reports indicated, among other things, that inventories at Hofmann Laces were rapidly increasing at the same time that its accounts payable were rapidly decreasing.  This apparent divergence was a direct result of Gaffney's false journal entries, though Guilford's personnel apparently believed that the divergence between Hofmann Laces' increasing inventories and its decreasing accounts payable was due, at least in part, to intercompany inventory purchases by Hofmann Laces from Guilford, which were reflected not in accounts payable but rather in a separate line item for intercompany transfers.   
+
+ In any case, the false entries went undetected because, among other things, Gaffney retained sole and exclusive control over the Hofmann Laces general ledger, because no one at Guilford reviewed Gaffney's entries or adjustments to Hofmann Laces' general ledger, and because Guilford had not yet integrated the Hofmann Laces general ledger accounting system into its own. 
+
+     5. Guilford's Discovery of the False Entries     
+
+ Gaffney resigned his position and left Hofmann Laces in late September 1998.  On Monday, October 26, 1998, after the stock market closed, Guilford issued a press release announcing that it had uncovered "potential accounting irregularities" at Hofmann Laces.  The press release further announced that, as a result of the irregularities, operating income for Hofmann Laces appeared to have been overstated by approximately $10 million to $11 million, having a net effect on the company's consolidated pretax earnings in the range of $4.3 million to $6.5 million.  Over the remainder of that week, the market price of Guilford's common stock experienced a short-term decline of approximately 23%, from $16.25 to $12.50 per share.  On November 24, 1998, in a press release announcing its operating results for the fiscal quarter and fiscal year ended September 27, 1998, Guilford also announced that it would restate its financial results for the first three quarters of its fiscal year ended September 28, 1998. 
+
+    B.  LEGAL DISCUSSION  
+
+    Exchange Act Section 13(a) and Rule 13a-13 thereunder require issuers of registered securities to file quarterly reports with the Commission on Form 10-Q. Courts have uniformly held that it is implicit in this requirement that the information reported in such periodic reports be accurate.   See ,  e.g. ,  SEC v. Savoy Indus. , 587 F.2d 1149, 1165 (D.C. Cir. 1978),  cert.   denied , 440 U.S. 913 (1979).  Exchange Act Section 13(b)(2)(A) requires issuers to "make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the issuer," and Exchange Act Section 13(B)(2)(B) requires issuers to devise and maintain an adequate system of internal accounting controls.  15 U.S.C. § 78m(b)(2).   
+
+    Guilford violated Exchange Act Section 13(a)  and Rule 13a-13 because it filed with the Commission three periodic reports on Form 10-Q which contained materially misstated financial statements.  Guilford also violated Exchange Act Section 13(b)(2)(A) and (B) because its books and records did not accurately and fairly reflect its transactions and dispositions, and because it failed to implement and maintain adequate internal accounting controls following its acquisition of Hofmann Laces.  Guilford allowed a single individual to control access to Hofmann Laces' books and records without sufficient checks to ensure that his activities were proper, at a time when Guilford had not yet integrated the general ledger of Hofmann Laces into Guilford's existing system. 
+
+  IV.  
+
+  FINDINGS  
+
+   Based on the above, the Commission finds that Respondent Guilford Mills, Inc. violated Exchange Act  Sections 13(a) and 13(b)(2)(A) and (B) and Exchange Act Rule 13a-13. 
+
+    V.  
+
+    ORDER  
+
+   Accordingly,  IT IS HEREBY ORDERED , pursuant to Section 21C of the Exchange Act, that Guilford Mills, Inc. cease and desist from committing or causing any violation of, and committing or causing any future violation of, Exchange Act Sections 13(a) and 13(b)(2)(A) and (B) and Exchange Act Rule 13a-13. 
+
+   By the Commission.
+
+             Jonathan G. Katz 
+
+            Secretary 
+		   Footnotes  
+   1     The findings herein are not binding on anyone other than Guilford. 
+
+   2     In a separate civil action filed simultaneously with this proceeding, Timothy J. Gaffney consented to the entry of an order by the court pursuant to Section 21(d) of the Exchange Act enjoining him from future violations of the Exchange Act Section 10(b) and Rule 10b-5 and ordering him to pay a $25,000 civil penalty.   SEC v. Timothy J. Gaffney , Civil Action No. 1:00CV01725 (RMU)  (D.D.C., filed July 24, 2000). 
+
+   3     Prior to August 1998, no one had access to Hofmann Laces' general ledger without Gaffney's knowledge and approval.  The general ledger was kept in a fireproof safe in Gaffney's office. 
+
+   4     The difference between Guilford's reported and restated operating income for the 3 affected quarters was less than the amount by which Gaffney overstated income at Hofmann Laces.  This is because Guilford, in restating its operating income, recalculated and reduced certain incentive bonuses payable to officers and employees based on the lower actual earnings of the company.  
+
+  
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1288.txt b/raw/aaer/2000/AAER-1288.txt
new file mode 100644
index 0000000000000000000000000000000000000000..ed0ea9e99437500a3a3d66b797a54e071919febf
--- /dev/null
+++ b/raw/aaer/2000/AAER-1288.txt
@@ -0,0 +1,1366 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Guilford Mills, Inc. and Timothy J. Gaffney 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483681","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Guilford Mills, Inc. and Timothy J. Gaffney
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Guilford Mills, Inc. and Timothy J. Gaffney
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+  Washington, D.C.  
+
+ Litigation Release No.  16634 / July 24, 2000
+
+  Accounting and Auditing Enforcement Release No. 1288 / July 24, 2000 
+
+ SECURITIES AND EXCHANGE COMMISSION v. TIMOTHY J. GAFFNEY, Case No. 1:00CV01725 (RMU) (U.S.D.C., D.D.C.)  
+
+  SEC ANNOUNCES SETTLED ENFORCEMENT PROCEEDINGS AGAINST GUILFORD MILLS, INC. AND TIMOTHY J. GAFFNEY  
+
+   The Securities and Exchange Commission today announced settled enforcement proceedings against Guilford Mills, Inc., a textile company based in Greensboro, North Carolina, and Timothy J. Gaffney, the former controller of Guilford's Hofmann Laces subsidiary in Cobleskill, New York.  The Commission filed a securities fraud complaint against Gaffney in the United States District Court for the District of Columbia and issued an administrative cease-and-desist order against Guilford. 
+
+   In its complaint against Gaffney, the Commission alleged that Gaffney made a series of false accounting entries in 1997 and 1998 while employed as controller of Guilford's Hofmann Laces subsidiary, which Guilford had acquired in January 1996.  According to the complaint, Gaffney's false entries materially understated accounts payable and materially overstated earnings for Hofmann Laces, which in turn caused Guilford's consolidated operating results to be materially overstated in the financial statements included in Guilford's quarterly reports on Form 10-Q filed with the Commission for the quarters ended December 28, 1997, March 29, 1998, and June 28, 1998.  Without admitting or denying the allegations of the Commission's complaint, Gaffney consented to entry of a judgment that enjoins him from violating the antifraud, internal accounting controls, and record-keeping provisions of the Securities Exchange Act of 1934 (Sections 10(b) and 13(b)(5) and Rules 10b-5 and 13b2-1 thereunder), and orders him to pay a $25,000 civil penalty. 
+
+   In the related administrative proceeding against Guilford, the Commission found that Guilford failed to implement and maintain adequate internal accounting controls following its acquisition of Hofmann Laces, which allowed Gaffney's false entries to go undetected and resulted in books and records that did not accurately and fairly reflect Guilford's transactions and asset dispositions.  Based on those findings, the Commission issued an order finding that Guilford violated the periodic reporting, internal accounting controls, and record-keeping provisions of the Exchange Act (Sections 13(a) and 13(b)(2) (A) and (B) and Rule 13a-13 thereunder) and requiring Guilford to cease and desist from committing or causing such violations.  Guilford consented to the issuance of the Commission's order without admitting or denying the matters set forth therein.  (See Exchange Act Rel. No. 43068 /AAER No. 1287. 
+
+
+  
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1289.txt b/raw/aaer/2000/AAER-1289.txt
new file mode 100644
index 0000000000000000000000000000000000000000..e3d6799312b370782fc15bbf4c7751a0bc5efb56
--- /dev/null
+++ b/raw/aaer/2000/AAER-1289.txt
@@ -0,0 +1,1464 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Leslie Danish 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359346","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Leslie Danish
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Leslie Danish
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  43071 / July 26, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1289 / July 26, 2000 
+
+ ADMINISTRATIVE PROCEEDING File No. 3-9594 
+
+     
+ In the Matter of    
+
+Leslie A. Danish, CPA
+  
+Respondent.   
+   
+
+    : : : : : : : :   
+   
+  ORDER GRANTING APPLICATION 
+FOR REINSTATEMENT TO APPEAR AND PRACTICE AS AN ACCOUNTANT 
+    
+
+    On April 30, 1998, Leslie A. Danish, CPA ("Danish") was denied the privilege of appearing or practicing before the Commission as an accountant as a result of settled public administrative proceedings instituted by the Commission against Danish pursuant to Rule 102(e)(1)(ii) of the Commission's Rules of Practice.  1    This order is issued in response to his application for reinstatement to appear and practice before the Commission as an accountant. 
+
+   Towers Financial Corp. ("Towers") formed Towers Healthcare Receivables Funding Corporations I through V (the "Funding Corporations") in July 1990 to raise funds through private bond offerings to institutional investors.  The proceeds from the offerings were to be used for the purchase of accounts receivable from Towers, which, in turn, was to acquire accounts receivable from healthcare providers.  The financial statements of the Funding Corporations for the year ended June 30, 1992 reported $300 million of purchased healthcare receivables as assets, which served as collateral for the bonds as required by the bond indentures.  The fiscal 1992 financial statements of the Funding Corporations departed from GAAP as a result of the failure to properly account for disbursements to certain healthcare providers as loans to such providers and the failure to provide an allowance for uncollectible amounts on such loans.   
+
+   Danish, as the engagement partner on the fiscal 1992 audits, was responsible for Richard A. Eisner, LLP's issuance of audit reports containing unqualified opinions on the Funding Corporations' fiscal 1992 financial statements.  The suspension order alleged that these audit reports erroneously stated that the financial statements were prepared in conformity with GAAP and the audits were conducted in accordance with GAAS, and that in performing the fiscal 1992 audits of the Funding Corporations, Danish departed from GAAS in the following significant respects.  Danish relied excessively on management representations and failed to maintain an attitude of professional skepticism.  Furthermore, Danish failed to obtain sufficient, competent evidential matter to support the Funding Corporations' balance sheet classification of the loans to healthcare providers, and the lack of need for bad debt provisions related to such loans.  Additionally, Danish failed to undertake sufficient procedures to determine whether illegal acts had occurred at the Funding Corporations, in light of the information coming to his attention during the audits. 
+
+   On the basis of information supplied, representations made, and undertakings agreed to by Danish, it appearing that Danish has complied with the terms of the April 30, 1998 order suspending him from practice before the Commission as an accountant, that no information has come to the attention of the Commission relating to his character, integrity, professional conduct or qualifications to practice before the Commission that would be a basis for adverse action against Danish pursuant to Rule 102(e) of the Commission's Rules of Practice, and that Danish's undertaking to comply with the terms for reinstatement contained in the suspension order in his practice before the Commission, is fair and in the public interest, it is accordingly, 
+
+   ORDERED pursuant to Rule 102(e)(5)(i) of the Commission's Rules of Practice that Leslie A. Danish, CPA is reinstated to appear and practice before the Commission as an accountant. 
+
+ By the Commission. 
+
+             Jonathan G. Katz
+
+             Secretary 
+  Footnotes 
+
+
+
+   1    See Accounting and Auditing Enforcement Release No. 1030, dated April 30, 1998.  Danish was permitted, pursuant to the order, to apply for reinstatement after eighteen months upon making certain showings. 
+
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1290.txt b/raw/aaer/2000/AAER-1290.txt
new file mode 100644
index 0000000000000000000000000000000000000000..a52605029967325913cfefe0973844752c134c98
--- /dev/null
+++ b/raw/aaer/2000/AAER-1290.txt
@@ -0,0 +1,1490 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Steven Wolis 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359326","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Steven Wolis
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Steven Wolis
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  43123 \ August 4, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.   1290 / August 4, 2000
+
+  ADMINISTRATIVE PROCEEDING
+ File No. 3-10262 
+
+ 
+      
+ In the Matter of    
+ 
+Steven Wolis,  
+Respondent.     
+   
+
+ 
+    : : : : : : : :    
+   
+  ORDER INSTITUTING PUBLIC 
+PROCEEDINGS AND OPINION 
+AND ORDER UNDER RULE 102(e) 
+OF THE COMMISSION'S RULES 
+OF PRACTICE   
+    I. 
+
+  The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and they hereby are, instituted against Steven Wolis ("Wolis") pursuant to paragraph three (3)(i)(A) of Rule 102(e) of the Commission's Rules of Practice [17 C.F.R. § 201.102(e)(3)(i)(A)] ("Rule 102(e)").  1      II. 
+
+  In anticipation of the institution of these administrative proceedings, Wolis has submitted an offer of settlement ("Settlement Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceeding brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the Commission's findings contained herein, except for the jurisdiction of the Commission over him and over the matters set forth in this order and that a Final Judgment of Permanent Injunction and Other Relief ("Final Judgment") has been entered against him as set forth in Paragraph III below, which are admitted, Wolis consents to the entry of this Order Instituting Public Proceedings and Opinion and Order Pursuant to Rule 102(e) ("Order").
+
+   III. 
+
+  On the basis of this Order and the Settlement Offer, the Commission finds that:
+
+  A. Wolis is an attorney and has been licensed to practice law in the State of Florida since May 23, 1987.   From approximately 1989 through approximately 1996, Wolis served as a director of Keith Group of Companies, Inc. ("Keith Group"), a public company.  In addition, Wolis served as Keith Group's general counsel.
+
+  B. Keith Group, formed in 1987, was incorporated in Delaware.  Keith Group was at all relevant times a reporting company registered with the Commission pursuant to Section 15(d) of the Securities Exchange Act of 1934 ("Exchange Act"), 15 U.S.C. § 78o(d).  Keith Group's common stock was traded on NASDAQ.
+
+  C. Hugh Keith ("Keith"), was at all relevant times the president and control person of Keith Group.  
+
+  D. On July 24, 1995, the Commission filed a complaint in the United States District Court for the Southern District of Florida, against, among others, Wolis.   SEC v. Keith Group of Companies, Inc. , Case No. 95-6702-CIV-GONZALEZ (S.D. Fla. 1995).  The Complaint charges the defendants with violations of the antifraud, corporate reporting, and books and records provisions of the federal securities laws.  The Commission's Complaint alleges, among other things, that from approximately February 1991 through approximately August 1993, Keith perpetrated a scheme to inflate the reported assets of Keith Group.  The Complaint further alleges that Keith Group's filings falsely reported that Keith Group sold six parcels of real estate at a total profit of $4,837,899.  False and misleading financial statements reflecting these fraudulent real estate "sales" were contained in the financial statements included in Forms 10-K and 10-Q that Keith Group filed with the Commission in 1991 and 1992.  According to the Complaint, during the same time period, Keith, while in possession of material, non-public information concerning, among other things, Keith Group's true financial condition, traded in Keith Group stock in breach of his fiduciary duty to Keith Group's shareholders.  Keith and entities under his control obtained proceeds of approximately $1,019,229.  The Complaint charged Wolis with knowingly or recklessly preparing documents relating to the real estate "sales" and with signing the Form 10-K for the period ending August 31, 1991 reflecting these "sales."
+
+  E. Wolis consented to the entry of the Final Judgment without admitting or denying the allegations in the Complaint, except subject matter jurisdiction, which Wolis admitted. On June 26, 2000, the United States District Court for the Southern District of Florida entered a Final Judgment of Permanent Injunction.  Pursuant thereto, Wolis was permanently enjoined from future violations of Sections 10(b), 13(b)(5) and 13(b)(2) of the Exchange Act, and Rules 10b-5, 13b2-1 and 13b2-2, promulgated thereunder.
+
+  F. On July 16, 1998, Wolis pled guilty to a single count of violating 18 U.S.C. § 1505 in that he knowingly and willfully corruptly endeavored to influence, obstruct, and impede the due administration of justice by making materially false and misleading statements while testifying as a witness in a proceeding then pending before an agency of the United States, to wit, a formal investigation by the SEC styled, In the Matter of the Keith Group of Companies, Inc., File No. A-1358.
+
+   IV. 
+
+  ORDER IMPOSING SANCTIONS
+
+  Based upon the foregoing, the Commission deems it appropriate and in the public interest to accept the Settlement Offer and accordingly, IT IS HEREBY ORDERED, effective immediately, that Wolis is denied the privilege of appearing or practicing before the Commission.
+
+  By the Commission. 
+  Jonathan G. Katz 
+ Secretary
+
+  
+   Footnotes 
+ 
+
+    1     Rule 102(e)(3)(i)(A) of the Commission's Rules of Practice, 17 C.F.R. § 201.102(e)(3)(i)(A), provides in pertinent part:
+
+    The Commission, with due regard to the public interest ... may ... temporarily suspend from appearing or practicing before it any attorney ... who ... has been by name ... [p]ermanently enjoined by any court of competent jurisdiction, by reason of his misconduct in an action brought by the Commission, from violating or aiding and abetting the violation of any provision of the Federal securities laws or of the rules and regulations thereunder ....
+
+    Rule 102(e)(3)(iv), 17 C.F.R. § 201.102(e)(3)(iv) further provides that:
+
+    A person who has consented to the entry of a permanent injunction . . . without admitting the facts set forth in the complaint shall be presumed for all purposes under this paragraph (e)(3) to have been enjoined by reason of the misconduct alleged in the complaint.
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1291.txt b/raw/aaer/2000/AAER-1291.txt
new file mode 100644
index 0000000000000000000000000000000000000000..16153f9c38b87f334605cbf939de7bb224a729c9
--- /dev/null
+++ b/raw/aaer/2000/AAER-1291.txt
@@ -0,0 +1,1566 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Axel E. Friedberg and Rudolf J. Weissenberger 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359316","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Axel E. Friedberg and Rudolf J. Weissenberger
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Axel E. Friedberg and Rudolf J. Weissenberger
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+                    
+
+
+ UNITED STATES OF AMERICA
+ Before the 
+ SECURITIES AND EXCHANGE COMMISSION
+
+  SECURITIES EXCHANGE ACT OF 1934
+ Release No. 43129 / August 8, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.   1291 / August 8, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No.  3-10263  
+
+ 
+      
+ In the Matter of 
+   
+AXEL E. FRIEDBERG and
+ RUDOLF J. WEISSENBERGER,   Respondents.  
+   
+
+    : : : : :   
+   
+   ORDER INSTITUTING PUBLIC
+ ADMINISTRATIVE PROCEEDINGS
+ PURSUANT TO SECTION 21C OF THE 
+ SECURITIES EXCHANGE ACT OF 1934, 
+ MAKING FINDINGS, AND IMPOSING A 
+ CEASE-AND-DESIST ORDER 
+     I.  
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate that public administrative proceedings be instituted against Respondents Axel E. Friedberg ("Friedberg") and Rudolf J. Weissenberger ("Weissenberger") pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act"). 
+
+  II.  
+
+   In anticipation of the institution of these administrative proceedings, Friedberg and Weissenberger have each submitted an Offer of Settlement ("Offers") that the Commission has determined to accept.  Solely for the purpose of these proceedings, and any other proceedings brought by or on behalf of the Commission, or in which the Commission is a party, without admitting or denying the findings set forth herein, except as to jurisdiction of the Commission over them and over the subject matter of these proceedings, which Friedberg and Weissenberger admit, Friedberg and Weissenberger consent to the entry of this Order Instituting Public Administrative Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order ("Order") set forth below. 
+
+   Accordingly, IT IS HEREBY ORDERED that proceedings pursuant to Section 21C of the Exchange Act be, and hereby are, instituted. 
+
+  III.  
+
+  FACTS  
+
+   The Commission makes the following findings:  1   
+
+  A. Respondents, the Issuer and a Related Individual  
+
+    1. Respondents  
+
+    Axel E. Friedberg , 55, served as a director of The Cronos Group ("Cronos" or "company") from January 1997 through March 1999.  He is an Austrian attorney and has provided business legal advice to Stefan M. Palatin ("Palatin"), the former Chairman and Chief Executive Officer ("CEO") of the company.  Friedberg is a citizen of Austria and resides in Vienna, Austria. 
+
+    Rudolf J. Weissenberger , 65, served as a director of Cronos from February 1997 through March 1999.  Weissenberger served as the acting, and then official, Chairman and CEO of Cronos from May 1998 through December 1998 after the former CEO was removed from office by the board of directors.  Weissenberger is a citizen of Austria and resides in Malta.  He was associated with Palatin in several business ventures between 1980 and 1991. 
+
+    2. The Issuer  
+
+    The Cronos Group  2    is a Luxembourg holding company with its operational headquarters in Orchard Lea, England.  Cronos' common stock is registered with the Commission pursuant to Section 12(g) of the Exchange Act and is traded on the Nasdaq National Market System.  3    Cronos made its initial public offering ("IPO") in December 1995.  Cronos both owns and manages marine cargo containers. 
+
+    3. Related Individual  
+
+    Stefan M. Palatin  is the former Chairman and Chief Executive Officer, and majority shareholder, of Cronos.  In May 1998, Palatin was removed as CEO and, in July 1998, he resigned from the Board of Directors ("board") of Cronos.   
+
+  B. Summary  
+
+   This proceeding involves Friedberg's and Weissenberger's conduct as directors of Cronos.  Prior to joining the board, Friedberg had learned about several transactions involving Palatin when he provided legal and other services to him.  After Friedberg joined the board, he authorized filings with the Commission that he knew or was reckless in not knowing were materially false and misleading with respect to those transactions.  Similarly, Weissenberger authorized filings which failed to disclose the potential effect on the company of a transaction he had with Palatin.  That disclosure was necessary in order to make the statements in Cronos' filing not misleading. 
+
+   Palatin controlled the company's disclosures and was the beneficiary of the matters that the company misrepresented in its filings.  Friedberg, by authorizing the filings, was a cause of Cronos' antifraud and reporting violations.  Weissenberger was also a cause of the company's reporting violations. 
+
+    C.   Facts  
+
+      1. Background: Disclosure Fraud by Palatin and Cronos  
+
+   Palatin acquired sole control of Cronos' predecessor and other assets from Weissenberger in 1991.  Cronos first sold shares publicly in December, 1995 ("the IPO") after the Commission declared its registration statement effective.  Palatin dominated and controlled the company from 1991 through the IPO and until his ouster by the board in 1998.  Throughout this period Palatin, among other things, caused and attempted to cause the company to disburse funds to him and to mischaracterize those disbursements in Cronos' filings with the Commission and reports to shareholders.  Similarly, Palatin and the company made material misstatements and failed to disclose material facts concerning collateral he pledged to secure his promise to repay certain loans to the company.  4   
+
+   Before and after the IPO, Palatin caused Cronos to disburse several payments totaling more than $7.5 million to an entity he controlled.  Cronos, at Palatin's direction, represented in its offering materials and subsequent annual and other filings with the Commission that the payments were a loan to a third party, Barton Holdings Ltd. ("Barton").  5    The filings did not disclose the fact that Palatin controlled Barton.  The funds purportedly loaned to Barton were paid to Palatin or otherwise applied to discharge obligations he owed to third parties.  Cronos' filings with the Commission, including its 1996 annual report on Form 20-F, misrepresented the company's transactions with Palatin and Barton and Barton's relationship with Palatin. 
+
+   In 1996, following the IPO, Palatin became indebted to Cronos in the amount of several million dollars.  6    To secure this obligation he pledged as collateral slightly more than one million shares of Cronos stock which he claimed to own outright.  In fact, however, these shares were already encumbered.  They were owned by a Panamanian bearer share company whose shares were held in trust to secure Palatin's obligation to pay Weissenberger for Palatin's purchase of Cronos' predecessor, among other assets.  Moreover, Palatin had failed to make payments when they came due, that is, he had defaulted on his obligation to pay Weissenberger.  7    Cronos' filings with the Commission, including the 1996 Form 20-F, filed after Friedberg and Weissenberger joined the board, failed accurately to describe the circumstances giving rise to Palatin's indebtedness to Cronos and the problems concerning his pledge of shares to secure this loan.  The company's filings failed to disclose that the collateral was encumbered by reason of the earlier trust agreement and that Palatin had defaulted on the obligation collateralized by the trust agreement. 
+
+    2. Friedberg's Conduct  
+
+   Friedberg's relationship with Palatin dates back to the 1980's.  Among other things, Friedberg helped organize and incorporate Barton, acted as its agent, opened a Swiss bank account for it and oversaw the receipt of funds into and the disbursement of funds from the account.  As a consequence, he knew that Cronos paid funds to Barton and he directed the disbursement of those funds, at Palatin's direction, to or for the benefit of Palatin.  In short, he knew or was reckless in not knowing that Palatin controlled Barton. 
+
+   In 1997, after he joined Cronos' board, he authorized the issuance of financial statements and textual disclosure, in the company's annual report on Form 20-F, which materially misrepresented the relationships between Cronos, Palatin and Barton.  Among other things, the filing failed to disclose Palatin's control of Barton and receipt of funds purportedly loaned to Barton, facts Friedberg knew intimately. 
+
+   Friedberg also acted as the trustee pursuant to the agreement between Palatin and Weissenberger for Palatin's purchase of Weissenberger's interest in Cronos' predecessor, among other assets.  As trustee, he knew that the shares that Palatin had pledged to Cronos were, in fact, encumbered by the prior pledge to Weissenberger.  Friedberg also knew that Palatin had defaulted on his obligation under this agreement, entitling Weissenberger to claim a majority of the shares.  Nevertheless, Friedberg assured others that there was no defect with the pledge to the company.  He also authorized the 1996 Form 20-F filing which described the shares as collateral for Palatin's obligation to Cronos and did not disclose the earlier pledge to Weissenberger or the default on the underlying agreement. 
+
+    3. Weissenberger's Conduct  
+
+   Weissenberger became a director in winter 1997, after Friedberg but before the filing of the 1996 Form 20-F.  He knew that the 1996 Form 20-F would not disclose the fact that the collateral Palatin had pledged to Cronos was pledged to him and that Palatin had defaulted on the obligation to him.  Palatin had acknowledged being in default but asked him to forebear declaring a default or disclosing the prior pledge.  Palatin assured Weissenberger that he would cure the default and would pay off his obligations to Cronos and to Weissenberger by selling shares.  Weissenberger relied on Palatin's assurances.  Because he honored Palatin's request, Weissenberger did not disclose these facts to others at Cronos, the auditors or company counsel.  Weissenberger authorized the filing of the 1996 Form 20-F and other filings even though they failed to disclose the double pledge of the collateral and Palatin's default.   
+
+    IV.  
+
+  LEGAL DISCUSSION  
+
+    A. Friedberg's Violations of the Antifraud and Reporting Provisions of the Exchange Act  
+
+   Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5 prohibit the making of materially false and misleading statements in connection with the purchase or sale of any security.  Violations of the antifraud provisions require proof of scienter.   See Aaron v. SEC , 446 U.S. 680 (1980).  Cronos failed accurately to disclose transactions with Palatin and facts concerning the impairment of collateral it held to secure Palatin's repayment of funds he owed the company.  Under Generally Accepted Accounting Principles, Cronos' transactions with Palatin were material related party transactions that should have been reported.  8    These false and misleading disclosures appeared, among other places, in the 1996 annual report on Form 20-F and Forms 6-K filed with the Commission in 1997.  The false and misleading disclosures were material because an investor would consider the related party transactions and the value of collateral for a multi-million dollar related party loan important to making an investment decision.  The loan constituted a material asset on the company's balance sheet. 
+
+   Friedberg, as a result of acting as attorney for Barton, and as trustee in connection with the Palatin/Weissenberger agreement, knew material facts concerning these matters.  Although he obtained some of the information while acting as an attorney, his obligation to maintain client confidences did not supersede his obligation in this instance to assure that filings with the Commission that he approved were complete and accurate.  Nevertheless, Friedberg authorized the filing of the 1996 Form 20-F and Forms 6-K which he knew or was reckless in not knowing contained materially false and misleading statements and omitted material facts concerning Palatin's relationship with Barton and the collateral Palatin had pledged to Cronos.  By authorizing the filings, he was a cause of Cronos' violations of Section 10(b) of the Exchange Act and Exchange Act Rule 10b-5.  He also thereby was a cause of Cronos' violations of Section 13(a) of the Exchange Act and Exchange Act Rules 12b-20, 13a-1 and 13a-16. 
+
+    B. Weissenberger's Violations of the Reporting Requirements  
+
+   The disclosures and financial statements in Cronos' 1996 Form 20-F and Forms 6-K filed in 1997 did not disclose material facts giving rise to the uncertainty associated with the collateral pledged by Palatin.  Weissenberger, as a director of Cronos, authorized these filings.  At the time he knew that the collateral had previously been pledged to him and that Palatin was in default on their 1991 stock purchase agreement.  Instead of correcting the filings or bringing the facts to the attention of others, Weissenberger relied on Palatin's assurances that he would cure the default and pay off both the company and him, thereby rendering the non-disclosure harmless.   See In the Matter of W. R. Grace & Co. , Release No. 39157 (Sept. 30, 1997).  He allowed his loyalty to a friend to override his obligations to ensure that the company's disclosures were accurate and complete.  By authorizing filings that Weissenberger knew or should have known were inaccurate, he was a cause of Cronos' violations of Section 13(a) of the Exchange Act and Exchange Act Rules 12b-20, 13a-1 and 13a-16. 
+
+  V.  
+
+  FINDINGS  
+
+   Based on the foregoing, the Commission finds that Friedberg caused violations of  Sections 10(b) and 13(a) of the Exchange Act, and Exchange Act Rules 10b-5, 12b-20, 13a-1, and13a-16.  Further, the Commission finds that Weissenberger caused violations of Section 13(a) of the Exchange Act, and Exchange Act Rules 12b-20, 13a-1 and 13a-16. 
+
+  VI.  
+
+  ORDER  
+
+   Based on the foregoing, the Commission deems it appropriate to accept the Offers submitted by the Respondents and accordingly, 
+
+   IT IS HEREBY ORDERED ,  pursuant to Section 21C of the Exchange Act, that: 
+
+   A. Friedberg cease and desist from committing or causing any violation, or any future violation, of Sections 10(b) and 13(a) of the Exchange Act, and Exchange Act Rules 10b-5, 12b-20, 13a-1, and 13a-16; and 
+
+   B. Weissenberger cease and desist from causing any violation, or any future violation, of Section 13(a) of the Exchange Act, and Exchange Act Rules12b-20, 13a-1, and 13a-16.  
+
+   By the Commission. 
+
+             Jonathan G. Katz
+             Secretary  
+  Footnotes 
+
+
+
+   1     The findings herein are made pursuant to the Offers that Friedberg and Weissenberger submitted and are not binding on any other person or entity in this or any other proceeding. 
+
+   2     The Commission issued a cease-and-desist order against Cronos on November 15, 1999, based, in part, on the improper acts described herein.   See   In the Matter of The Cronos Group , Admin. Proc. No. 3-10096 (Nov. 15, 1999).   
+
+   3     From December 1995 through December 1998, Cronos reported as a "foreign private issuer" as defined by Exchange Act Rule 3b-4.  In its 1999 fiscal year, Cronos began reporting as a United States issuer.   
+
+   4     For a more complete description of Cronos' violations see  In the Matter of The Cronos Group , Admin. Proc. No. 3-10096 (Nov. 15, 1999).  
+
+   5     Barton sold shares in the IPO.  The registration statement did not disclose that Palatin controlled Barton and consequently, was a selling shareholder in the IPO. 
+
+   6     Following the IPO, and under pressure from auditors and outside counsel, Palatin guaranteed the unpaid balance purportedly owed by Barton.  Subsequently, Barton defaulted and Palatin, in effect, assumed the obligation to pay the balance owed. 
+
+   7    Palatin was obligated to make two payments per year to Weissenberger.  By mid-1997, Palatin had failed to make at least two consecutive payments and was in default of his obligation pursuant to the agreement.  In 1997, prior to the filing of Cronos' 1996 Form 20-F, at Palatin's request, Weissenberger agreed not to invoke the default clause of the agreement. 
+
+   8    See  Statement of Financial Accounting Standards No. 57; Regulation S-X, Section 210.4-08(k); Regulation S-K, Item 404(a). 
+
+  
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1292.txt b/raw/aaer/2000/AAER-1292.txt
new file mode 100644
index 0000000000000000000000000000000000000000..85e98f878a1e7e8235dab65e210bbb23242277cf
--- /dev/null
+++ b/raw/aaer/2000/AAER-1292.txt
@@ -0,0 +1,1375 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Stefan M. Palatin 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483736","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Stefan M. Palatin
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Stefan M. Palatin
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              
+ U.S. SECURITIES AND EXCHANGE COMMISSION 
+WASHINGTON, D.C.
+   
+LITIGATION RELEASE NO. 16645 \ August 8, 2000
+    
+ACCOUNTING AND AUDITING ENFORCEMENT RELEASE NO. 1292
+  
+Securities and Exchange Commission v. Stefan M. Palatin, Civil Action No. 1:00CV01909,
+ USDC DC.
+  
+SECURITIES AND EXCHANGE COMMISSION SUES FORMER CHIEF EXECUTIVE OFFICER 
+OF THE CRONOS GROUP FOR VIOLATIONS OF ANTIFRAUD, BOOKS AND RECORDS, AND INTERNAL CONTROL PROVISIONS
+  
+	The Securities and Exchange Commission ("Commission") today filed a civil injunctive action in the federal district court for the District of Columbia against Stefan M. Palatin, the former chairman and CEO of The Cronos Group.  The Commission alleges that Palatin caused Cronos to misrepresent or fail to disclose a series of transactions by which Palatin obtained more than $10 million from Cronos or from a customer of the company who owed the funds to Cronos.  The Commission alleges that as a consequence of Palatin's misconduct the company misrepresented or failed to disclose the transactions in the company's registration statement, public statements to shareholders, and in filings with the Commission between 1995 and 1998.  The complaint also alleges that Palatin caused the transactions to be recorded inaccurately in Cronos' books and records and he made and caused to be made misrepresentations to the company's auditors.  Cronos, a Luxembourg holding company with its operational headquarters in Orchard Lea, England, manages and owns marine cargo containers.
+  
+	According to the complaint, Palatin caused Cronos to fail to disclose that Palatin intercepted payments between Cronos and one of its major customers (which Palatin also controlled); he caused Cronos to pay him millions of dollars in the year before its initial public offering and recorded the payments as a loan to a third party; and Palatin, through another entity that he controlled, sold shares in Cronos' IPO.  The Commission also alleges that, following the IPO, Palatin caused Cronos to fail to disclose that it paid additional funds to him immediately after the offering.  The Commission further alleges that Palatin pledged collateral he did not won to secure a loan from the company and he caused the company to make misrepresentations concerning the collateral.  The Commission also alleges that Palatin controlled the company's disclosures and was the beneficiary of the transactions that the company misrepresented in its filings and public statements. 
+  
+	The Commission seeks an order permanently enjoining Palatin from violating Section 17(a) of the Securities Act, Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B), and 13(b)(5) of the Exchange Act, and Exchange Act Rules 10b-5, 12b-20, 13a-1, 13a-16, 13b2-1, 13b2-2.  The Commission further seeks an order permanently barring Palatin as an officer or director of a public company.
+  
+	On this date, the Commission has also instituted an administrative proceeding against Axel E. Friedberg, a former director, and Rudolf J. Weissenberger, a former director, chairman and CEO of Cronos, in connection with this matter.  Without admitting or denying the Commission's findings, Friedberg consented to an order compelling him to cease and desist from committing or causing violations, or any future violations, of the antifraud and reporting provisions of the federal securities laws and Weissenberger consented to an order compelling him to cease and desist from causing violations, or any future violations, of the reporting provisions of the federal securities laws.  In the Matter of Axel E. Friedberg and Rudolf J. Weissenberger, Admin. Proc. No. 3-10263  (August 8, 2000); SEA Rel. No. 43129 ; AAE Rel. No.1291.
+  
+	Previously, the Commission instituted an administrative proceeding against Cronos.  In the Matter of the Cronos Group, Admin. Proc. No. 3-10096; SA Rel. No. 33-7771; SEA Rel. No. 34-42139; AAE Rel. No. 1208 (November 15, 1999).
+  
+	The Commission acknowledges the valuable assistance provided in this matter by the governmental authorities of Austria, Switzerland and the United Kingdom.	
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1293.txt b/raw/aaer/2000/AAER-1293.txt
new file mode 100644
index 0000000000000000000000000000000000000000..953b55382e38ace4152596bbe507a0a80fac754c
--- /dev/null
+++ b/raw/aaer/2000/AAER-1293.txt
@@ -0,0 +1,1495 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | William J. McClintock, C.A. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359286","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              William J. McClintock, C.A.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        William J. McClintock, C.A.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No. 43160 / August 16, 2000  
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No. 1293 / August 16, 2000        
+
+ ADMINISTRATIVE PROCEEDING
+ File No. 3-10271
+
+      In the Matter of 
+ WILLIAM J. McCLINTOCK, C.A.,
+Respondent.
+
+ 
+ 
+ 
+ORDER INSTITUTING PROCEEDINGS
+ PURSUANT TO RULE 102(e) OF THE
+ COMMISSION'S RULES OF PRACTICE
+ MAKING FINDINGS, AND IMPOSING
+ REMEDIAL SANCTIONS
+     I. 
+
+   The Commission deems it appropriate and in the public interest that public administrative proceedings pursuant to Rule 102(e)(3)  1   of the Commission's Rules of Practice be, and hereby are, instituted against William J. McClintock (McClintock).   
+
+ II. 
+
+   In anticipation of the institution of this proceeding, McClintock has submitted an Offer of Settlement (Offer) which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the Commission's findings set forth herein, except that he admits the Commission's finding that a Final Judgment of PermanentInjunction and Other Relief has been entered against him as set forth in Paragraph III.C below and admits the Commission's jurisdiction over him and over the subject matter of this proceeding, McClintock consents to the entry of this Order that contains the findings set forth herein and the imposition of the remedial sanctions set forth below. 
+
+ III. 
+
+   The Commission finds the following:  
+
+   A.  McClintock , age 48, is a Chartered Accountant (C.A.)  2   licensed by the Public Accountants' Council for the Province of Ontario, Canada, in 1980.  McClintock was the Chief Financial Officer (CFO) of Alias Research Inc. (Alias), a Toronto, Ontario software company, from August 1988 until December 1991. 
+
+   B. Alias was, at all relevant times, an Ontario corporation, with its principal place of business in Toronto, which developed and marketed industrial design software.  Alias's common stock was registered with the Commission pursuant to Section 12(g) of the Securities Exchange Act of 1934 (Exchange Act) and, at all times relevant to the findings herein, Alias was required to file reports with the Commission pursuant to Section 13(a) of the Exchange Act. 
+
+   C. On April 16, 1996, the Commission filed a complaint in the United States District Court for the District of Massachusetts against McClintock and others, captioned  SEC v. Bingham, et al ., No. 96-10793EFH.  On March 20, 1997, based upon McClintock's undertaking not to seek reinstatement of his public accountant's license until the professional conduct committee concluded its investigation of him, the Institute of Chartered Accountants of Ontario agreed to postpone its investigation of McClintock pending the outcome of the Commission's proceedings against him.  On July 24, 2000, McClintock was permanently enjoined  from violating Section 17(a) of the Securities Act of 1933 (Securities Act) and Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5, 13b2-1 and 13b2-2 thereunder, barred for a period of five years from acting as an officer or director of a public company, and ordered to pay disgorgement of $285,825 plus prejudgment interest, but payment of disgorgement was waived and civil penalties were not assessed based upon McClintock's demonstrated lack of financial resources. 
+
+   D. The Commission's amended complaint alleged, among other things, that: (1) McClintock and others caused Alias's revenues and earnings for the first two quarters of fiscal 1992 to be inflated by recording revenue from four transactions in a manner not in conformity with Generally Accepted Accounting Principles, because collectibility was not reasonably assured; (2) in connection with financial statements included in reports that Alias filed with the Commission for those quarters,  McClintock and others misrepresented to accountants that the four transactions were appropriately recognized as revenue; (3) as a result of the conduct ofMcClintock and others, Alias's financial results in Quarterly Reports filed with the Commission for those two quarters and in related press releases were materially misleading; and (4) McClintock sold shares of Alias stock while in possession of material, nonpublic information concerning Alias's true financial condition.  
+
+ IV. 
+
+  ORDER IMPOSING SANCTIONS  
+
+   Based on the foregoing, the Commission deems it appropriate and in the public interest to accept the offer of settlement submitted by McClintock and accordingly, 
+
+    IT IS HEREBY ORDERED , effective immediately, that: 
+
+   A. McClintock is denied the privilege of appearing or practicing before the Commission as an accountant. 
+
+   B. After two years from the date of this Order, McClintock may request that the Commission consider his reinstatement by submitting an application (attention: Office of the Chief Accountant) to resume appearing or practicing before the Commission as: 
+
+     1. a preparer or reviewer, or a person responsible for the preparation or review, of any public company's financial statements that are filed with the Commission.  Such application must satisfy the Commission that McClintock's work in his practice before the Commission will be reviewed either by the independent audit committee of the public company for which he works or in some other acceptable manner, as long as he practices before the Commission in this capacity; and/or  
+
+     2.         an independent accountant.  Such application must satisfy the Commission that: 
+
+       (a) McClintock, or the firm with which he is associated, is a member of the SEC Practice Section of the American Institute of Certified Public Accountants Division for CPA Firms (SEC Practice Section) or an equivalent Canadian organization that includes or is supplemented by peer review, concurring partner review, continuing professional education and other membership requirements that provide appropriate quality controls over an accounting and auditing practice, as long as he practices before the Commission as an independent accountant; 
+
+       (b) McClintock, or the firm, has received an unqualified report relating to his, or the firm's, most recent peer review conducted in accordance with the guidelines adopted by the SEC Practice Section or equivalent organization; and   
+
+       (c) as long as McClintock appears or practices before the Commission as an independent accountant he will remain either a member of or associated with a member firmof the SEC Practice Section or equivalent Canadian organization and will comply with all applicable SEC Practice Section or equivalent Canadian organization requirements, including all requirements for periodic peer reviews, concurring partner reviews, and continuing professional education. 
+
+   C. The Commission's review of any request or application by McClintock to resume appearing or practicing before the Commission may include consideration of, in addition to the matters referenced above, any other matters relating to McClintock's character, integrity, professional conduct, or qualifications to appear or practice before the Commission. 
+
+   By the Commission. 
+
+                 Jonathan G. Katz
+                 Secretary 
+
+ Footnotes 
+   
+   1      Rule 102(e)(3), in relevant part, provides that the Commission may suspend from appearing or practicing before it any accountant who by name has been permanently enjoined, by a court of competent jurisdiction in an action brought by the Commission, from violating and provision of the federal securities laws or the rules and regulations thereunder.  17 C.F.R. Section 201.102(e)(3)(i).
+    
+   2       In Canada, a C.A. is the professional equivalent of a Certified Public Accountant in the United States.
+    
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1294.txt b/raw/aaer/2000/AAER-1294.txt
new file mode 100644
index 0000000000000000000000000000000000000000..ce76c3f6f34df9706413414033bccdea7755e2b9
--- /dev/null
+++ b/raw/aaer/2000/AAER-1294.txt
@@ -0,0 +1,1376 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Stephen R.B. Bingham, et al. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483796","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Stephen R.B. Bingham, et al.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Stephen R.B. Bingham, et al.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION 
+
+ LITIGATION RELEASE NO.  16657  / August  17, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT RELEASE NO. 1294 
+
+ SECURITIES AND EXCHANGE COMMISSION v. STEPHEN R.B. BINGHAM, et al. (United States District Court for the District of Massachusetts, C.A. No. 96-10793-EFH)
+
+
+
+   FORMER OFFICERS OF ALIAS RESEARCH, INC. ENJOINED 
+  AND CHARTERED ACCOUNTANT BARRED 
+  FOR ROLE IN FINANCIAL FRAUD  
+
+ The Commission announced today that, on July 24, 2000, the Honorable Edward F. Harrington, United States District Judge for the District of Massachusetts, issued a final judgment permanently enjoining William J. McClintock of Mississauga, Ontario from violating the antifraud  and internal controls provisions of the federal securities laws.  Previously, on March 28, 2000, Judge Harrington issued final judgments permanently enjoining Stephen R.B. Bingham of Toronto and Susan McKenna Grant of Bermuda, Alias's former chief executive officer and executive vice president, respectively, with violating the antifraud and reporting provisions of the federal securities laws.  Based on the injunction against McClintock, a chartered accountant, the Commission today instituted administrative proceedings against him and issued an order denying McClintock the privilege of appearing or practicing before the Commission as an accountant.  The order allows McClintock to apply for reinstatement after two years.  McClintock is the former chief financial officer of Alias Research, Inc., a Toronto-based software company whose stock was traded on the NASDAQ National Market System.  In anticipation of the institution of administrative proceedings, McClintock submitted an offer of settlement consenting to the issuance of the order. 
+
+ According to the Commission's order, on March 20, 1997, the Institute of Chartered Accountants of Ontario agreed to postpone its investigation of McClintock pending the outcome of the Commission's proceedings against him, based upon McClintock's undertaking  not to seek reinstatement of his public accountant's license until the professional conduct committee concluded its investigation of him. 
+
+ On April 16, 1996, the Commission filed a complaint against Bingham, Grant and McClintock.  According to the complaint, the three former corporate officers caused Alias to fraudulently recognize revenue on four sales transactions occurring during two successive fiscal quarters, which  resulted in material misrepresentations in quarterly reports filed with the Commission.  As a result of three of  the transactions, Alias improperly recognized revenue of $1,909,000 in the quarter ended April 30, 1991.  The reported first quarter total revenue of $6,705,000 was overstated by 40% and, without the three fraudulent  transactions, Alias would have reported a pretax loss of $906,000 rather than pretax income of $888,000.  As a result of the fourth transaction, Alias improperly recognized revenue of  $1,000,000 in the quarter ended    July 31, 1991.  Alias had actual pretax income of $164,000 for the second quarter, but reported pretax income of $1,164,000, an overstatement of 600%.  Recognition of revenues on the four transactions was improper because the revenues were not reasonably collectible in light of the fact that the purported purchasers did not have either the intent or ability to pay for the goods and had, in at least some cases, entered into oral agreements that they did not have to pay.  The Commission also alleged that Bingham, Grant and McClintock engaged in unlawful insider trading by selling significant amounts of their Alias common stock while in possession of material non-public information concerning the true nature of the four improper transactions. 
+
+ The final judgment against Bingham permanently enjoins him from violating Section 17(a) of the Securities Act and Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B) and 13(b)(5) of the Exchange Act and Rules 10b-5, 12b-20, 13a-13, 13b2-1 and 13b2-2 thereunder.  It also prohibits Bingham for a period of five years from acting as an officer or director of a public company and ordered him to pay disgorgement of $1,713,000 but waived disgorgement and did not impose a civil penalty based upon Bingham's demonstrated financial inability to pay.  Bingham consented to the entry of the final judgment without admitting or denying any of the substantive charges against him. 
+
+ The final judgment against Grant permanently enjoins her from violating Section 17(a) of the Securities Act and Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20, 13a-13 and 13b2-2 thereunder.  Pursuant to the judgment, Grant paid  disgorgement of $135,204 plus prejudgment interest of $129,592 and a civil penalty of $135,204.  Grant  consented to the entry of the final judgment without admitting or denying any of the substantive charges against her.
+
+  The final judgment against McClintock permanently enjoins him from violating Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 and Rules 10b-5, 13b2-1 and 13b2-2 thereunder.  The final judgment also prohibits McClintock for a period of five years from acting as an officer or director of a public company and orders him to pay disgorgement of $285,825 plus prejudgment interest, but waives disgorgement and does not impose a civil penalty based upon McClintock's demonstrated financial inability to pay.  McClintock consented to the entry of the final judgment without admitting or denying any of the substantive charges against him. 
+
+ For further information, see Litigation Release No. 14882 (April 17, 1996). 
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1295.txt b/raw/aaer/2000/AAER-1295.txt
new file mode 100644
index 0000000000000000000000000000000000000000..5c84fe378093b65c50fd60570dfbd3f1a653ccc8
--- /dev/null
+++ b/raw/aaer/2000/AAER-1295.txt
@@ -0,0 +1,1562 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Boston Scientific Corporation 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359261","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Boston Scientific Corporation
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Boston Scientific Corporation
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              UNITED STATES OF AMERICA
+ Before the
+ SECURITIES AND EXCHANGE COMMISSION
+
+  SECURITIES EXCHANGE ACT OF 1934
+ Release No.  43183 / August 21, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1295 / August 21, 2000 
+
+  ADMINISTRATIVE PROCEEDING
+ File No.   3-10272
+
+  
+
+    
+    In the Matter of  
+ 
+BOSTON SCIENTIFIC CORPORATION,
+  
+Respondent.    
+ 
+ORDER INSTITUTING PROCEEDINGS 
+PURSUANT TO SECTION 21C OF THE 
+SECURITIES EXCHANGE ACT OF 1934, 
+MAKING FINDINGS AND 
+IMPOSING A CEASE-AND- 
+DESIST ORDER
+      I.
+
+  The Securities and Exchange Commission ("Commission") deems it appropriate that cease-and-desist proceedings be, and hereby are, instituted against Boston Scientific Corporation ("Boston Scientific") pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act").
+
+  II.
+
+  In anticipation of the institution of these proceedings, Boston Scientific has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of these proceedings, and any other proceedings brought by or on behalf of the Commission, or to which the Commission is a party, and without admitting or denying the findings, except those findings pertaining to the jurisdiction of the Commission over it and over the subject matter of these proceedings, which Boston Scientific admits, Boston Scientific by its Offer consents to the entry of this Order Instituting Proceedings Pursuant to Section 21C of the Exchange Act, Making Findings, and Imposing Cease-And-Desist Order ("Order").
+
+  III.
+
+  On the basis of this Order and the Offer submitted by Boston Scientific, the Commission makes the following findings:
+
+   A.  Respondent and Related Entity  
+
+   1.  Respondent  
+
+    Boston Scientific Corporation   is a Delaware corporation headquartered in Natick, Massachusetts, that develops, manufactures, and markets medical devices.  Boston Scientific's securities are registered with the Commission pursuant to Section 12(b) of the Exchange Act, and its common stock is listed on the New York Stock Exchange.  Boston Scientific has a December 31 fiscal year end.
+
+   2.  Related Entity  
+
+    Boston Scientific Japan, KK   ("Boston Japan") is a Japanese corporation headquartered in Tokyo, Japan, and was, at all relevant times, a wholly owned subsidiary of Boston Scientific.  It sells and distributes medical devices to hospitals in Japan through a network of independent distributors.  In 1997 and 1998, Boston Japan's net sales constituted approximately 16-18% of Boston Scientific's overall sales.
+
+   B.  Facts  
+
+   1.  Summary  
+
+  This matter involves false sales recorded by Boston Japan, which resulted in Boston Scientific's material overstatements of net income, and understatements of net losses, in quarterly and annual reports for the periods ended March 31, 1997, through June 30, 1998.  In 1997 and 1998, Boston Japan recorded thousands of false sales collectively totaling more than $75 million.  Boston Japan submitted its false sales and earnings data to Boston Scientific, which then incorporated those figures in its consolidated financial statements that were filed with the Commission.  As a result, Boston Scientific materially overstated its net income and/or understated its net losses for all four quarters in 1997, the fiscal year ended December 31, 1997, and the first two quarters in 1998, by amounts ranging from 10% to 46% of net income.  In addition, Boston Japan's internal controls suffered from material weaknesses in that they failed to prevent or detect the false sales activity resulting from management and distributor collusion at Boston Japan.  As a result, Boston Scientific violated the issuer reporting, record keeping and internal controls provisions of the Exchange Act.  
+
+     2.   Boston Japan's Fraudulent Salesand Boston Scientific's Restatement  
+
+  Beginning at least as early as 1996 and continuing through the third quarter of 1998, employees of Boston Japan, including the former president, carried out a scheme to record false sales to independent distributors in order to boost Boston Japan's sales numbers.  While the scheme began at least as early as 1996, it increased dramatically in 1997 and 1998 as a result of efforts by Boston Japan employees to meet or exceed previously set sales goals.  More than forty Boston Japan employees and approximately 143 independent distributors eventually became involved in the scheme.  
+
+  Boston Japan employees used a variety of techniques to perpetrate and cover up the fraudulent sales of medical devices, often colluding with the independent distributors.  In certain cases, Boston Japan sales managers leased commercial warehouses, recorded false sales to distributors, and shipped the goods to the leased warehouses.  To mask the fact that the distributors never paid for the goods, the sales managers eventually issued credits to the distributors and then recorded false sales of the same goods to other distributors, without ever moving the goods out of the leased warehouses.  Over time, approximately 76% of Boston Japan's false sales were shipped to these leased warehouses.  In other cases, sales managers issued purchase orders, shipped goods to cooperating distributors and booked revenue upon shipment of the goods when, in fact, the distributors never intended to pay for the goods and eventually returned them for credit several months later.
+
+  In some instances described above, Boston Japan employees went so far as to record sales to distributors that were not even involved in the medical device business, but that had agreed with Boston Japan sales managers to collude in the fraud.  Some false sales were made to distributors that never resold any of the goods and never paid Boston Japan for any purported sales.  The sales managers and cooperating independent distributors further colluded to cover up false sales by falsely confirming the legitimacy of the sales to Boston Scientific's auditors.
+
+  Boston Scientific discovered the false sales activity at Boston Japan in the fall of 1998. Boston Scientific's corporate finance function, with the benefit of a new management information system, highlighted a number of issues at Boston Japan, including a cash flow problem and a high rate of product returns.  As a result, Boston Scientific requested that its outside auditors confirm outstanding receivables, which led to the discovery of the fraud.  On November 3, 1998, Boston Scientific publicly announced the discovery of accounting irregularities in the operations of Boston Japan.  On February 23, 1999, after determining that the total amount of improperly recognized revenue was more than $75 million, and after consulting with staff of the Commission's Office of the Chief Accountant, Boston Scientific restated its financial statements for all of 1997 and for the first three quarters of 1998.  1     3.  Boston Japan's False Sales Caused Boston Scientific's Material Misstatements in Periodic Reports  
+
+  The booking of revenue based on false sales by Boston Japan caused Boston Scientific to make material misstatements in its quarterly reports on Forms 10-Q for all of 1997 and the first two quarters of 1998, and in its annual report on Form 10-K for 1997.  Specifically, Boston Scientific overstated its net income or understated its net losses in these periodic reports filed with the Commission as follows:
+    Net Income Summary (thousands)  
+
+  Period    
+ Reported Net   Income (loss)    
+  Restated Net   Income (loss)     
+        Variance   
+    Percentage   Variance   
+
+ QE 3/31/97    $75,436  $68,518    $6,918    10.1% 
+
+ QE 6/30/97  $(26,896)  $(33,189)  $6,293   19.0% 
+
+ QE 9/30/97  $88,405    $80,123    $8,282    10.3% 
+
+ QE 12/31/97*   $23,469   $16,028  $7,441   46.4% 
+
+ FYE 12/31/97*  $160,414  $131,480  $28,934   22.0% 
+
+ QE 3/31/98  $66,899  $59,641    $7,258    12.2% 
+
+ QE 6/30/98    $78,736   $67,460  $11,276   16.7% 
+
+
+ * Reported and restated net income is before the cumulative effect of a change in accounting.
+
+   4.  Boston Scientific Failed to Maintain Accurate Books and Records  
+
+  Boston Japan failed to maintain accurate books and records, which resulted in Boston Scientific's misstatements of net income in 1997 and 1998.  In its books and records, Boston Japan recorded thousands of false sales transactions totaling more than $75 million to independent distributors.  The recording of the false sales caused Boston Japan's books, records, and accounts to reflect inaccurately its transactions.  As a result, Boston Scientific failed to maintain accurate books and records.
+
+     5.  Boston Japan Failed to Maintain an Adequate System of Internal Controls  
+
+  Boston Japan failed to maintain an adequate system of internal controls.  Boston Japan's records did not properly track accounts receivable, cash receipts and product returns.  Among other things, certain of Boston Japan's customer records contained excessive credits and did not indicate whether such credits were due to cash receipts or product returns.  Without proper documentation of product returns, it was impossible for Boston Scientific or its auditors to determine whether old receivables were actually being paid or inventory was simply being returned and resold.  The material weaknesses in Boston Japan's internal controls prevented detection of the false sales activity which resulted in the material misstatements of net income described above.  Boston Scientific failed to ensure that Boston Japan maintained an adequate system of internal controls.
+
+   C.  Legal Discussion of Violations  
+
+   1.  Violations of Section 13(a) of the Exchange Act  
+
+  Section 13(a) of the Exchange Act and Rules 13a-1, 13a-13 and 12b-20 thereunder require issuers whose securities are registered with the Commission pursuant to Section 12 of the Exchange Act to file periodic and other reports with the Commission.  The information contained in periodic reports must be accurate and complete.   United States v. Bilzerian , 926 F.2d 1285, 1298 (2d Cir. 1991) (citing  SEC v. Savoy Indus. Inc. , 587 F.2d 1149 (D.D.C. 1978));  SEC v. Kalvex, Inc. , 425 F. Supp. 310, 316 (S.D.N.Y. 1975) (requirement that issuer file reports under Section 13(a) embodies the requirement that such reports be true and correct).  No showing of scienter is necessary to establish a violation of Section 13(a).   SEC v. McNulty , 137 F.3d 732, 741 (2d Cir. 1998);  Savoy Indus., Inc. , 587 F.2d at 1167 (holding no showing of scienter required for Section 13(d)(1) violation because it is a reporting provision).
+
+  By virtue of the conduct described above, Boston Scientific committed violations of Section 13(a) of the Exchange Act and Rules 13a-1, 13a-13 and 12b-20 thereunder because it filed periodic reports with the Commission containing materially inaccurate information.  Specifically, Boston Scientific materially overstated its net income or understated its net losses in its annual report on Form 10-K for 1997 and quarterly reports on Forms 10-Q for all of 1997 and the first two quarters of 1998.
+
+   2.  Violations of Section 13(b) of the Exchange Act  
+
+  Section 13(b)(2)(A) of the Exchange Act requires an issuer to make and keep books, records and accounts which, in reasonable detail, accurately and fairly reflect its transactions.  No showing of scienter is necessary to establish a violation of Section 13(b)(2)(A).   SEC v. World-Wide Coin Investments, Ltd. , 567 F.Supp. 724, 749 (N.D. Georgia, 1983).  By virtue of the conduct described above, Boston Scientific committed violations of Section 13(b)(2)(A) of the Exchange Act because its books, records and accounts with respect to its Japanese subsidiary did not accurately and fairly reflect its transactions.  Specifically, Boston Scientific's books, records and accounts with respect to Boston Japan contained thousands of instances of improperly recorded sales from 1997 through the third quarter of 1998, representing more than $75 million in improperly recognized revenue.
+
+  Section 13(b)(2)(B) of the Exchange Act requires every reporting company to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles.  No showing of scienter is necessary to establish a violation of Section 13(b)(2)(B).   World-Wide Coin , 567 F.Supp. at 751.  Boston Japan's internal controls suffered from "material weaknesses,"  2   because they did not properly track accounts receivable, cash receipts and product returns, thereby preventing timely detection of the fraudulent sales reporting.  By failing to ensure that its subsidiary devised and maintained an adequate system of internal controls, Boston Scientific violated Section 13(b)(2)(B). 
+
+  IV.
+
+  Based on the foregoing, the Commission finds that Boston Scientific committed violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 13a-1, 13a-13 and 12b-20 thereunder, and deems it appropriate to accept the Offer of Settlement submitted by Boston Scientific and to issue the cease-and-desist order specified herein.
+
+    V.
+
+  In determining to accept the Offer, the Commission considered remedial acts promptly undertaken by Boston Scientific and cooperation afforded the Commission staff.
+
+  VI.
+
+  Accordingly, IT IS ORDERED, pursuant to Section 21C of the Exchange Act, that Boston Scientific Corporation cease and desist from committing or causing any violation and any future 
+
+  violation of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 13a-1, 13a-13 and 12b-20 thereunder.
+
+  By the Commission.
+
+                      Jonathan G. Katz
+
+                     Secretary
+  
+  Footnotes 
+ 
+
+    1     Boston Scientific accounted for $6,871,000 in false sales that occurred prior to 1997 by writing that amount off as bad debt in its restated selling, general and administrative expenses for 1997.  Further, although false sales occurred in the third quarter of 1998, the existence of irregularities was discovered before Boston Scientific's quarterly report for that period was filed on November 16, 1998.  Although reported revenues for the quarter ended September 30, 1998, were not restated, the company restated its earnings for the quarter to remove a $79 million charge for prior periods that had been taken in that quarter to address the fraudulent sales.
+
+    2     A material weakness in internal control is defined in generally accepted auditing standards as:
+
+  a reportable condition in which the design or operation of one or more of the internal control components does not reduce to a relatively low level the risk that misstatements caused by error or fraud in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. [ See  AICPA Professional Standards, AU  325.15].
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1296.txt b/raw/aaer/2000/AAER-1296.txt
new file mode 100644
index 0000000000000000000000000000000000000000..23d15d5b18b1a5998087b53f2adc570c842c5842
--- /dev/null
+++ b/raw/aaer/2000/AAER-1296.txt
@@ -0,0 +1,1368 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Jeffrey P. Sudikoff, Edward Cheramy and Rudy Wann 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483826","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Jeffrey P. Sudikoff, Edward Cheramy and Rudy Wann
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Jeffrey P. Sudikoff, Edward Cheramy and Rudy Wann
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION 
+
+ Litigation Release No.  16663 / August 28, 2000 
+
+ Accounting Auditing Enforcement Rel. No. 1296 / August 28, 2000 
+
+ SECURITIES AND EXCHANGE COMMISSION v. JEFFREY P. SUDIKOFF, EDWARD CHERAMY AND RUDY WANN, Civil Action No. 97-7207 DDP (RCx) (C.D. Cal.) 
+
+   The Securities and Exchange Commission ("Commission") announced that on August 21, 2000, United States District Judge Dean D. Pregerson of the Central District of California entered final judgments of permanent injunction and other relief against all three defendants in this case, Jeffrey P. Sudikoff ("Sudikoff"), Edward Cheramy ("Cheramy") and Rudy Wann ("Wann").  The judgments were entered pursuant to the consents of the defendants, who neither admit nor deny the allegations of the Commission's Complaint.     The defendants are former officers of IDB Communications Group, Inc. ("IDB"), a telecommunications company formerly headquartered in Los Angeles, California.  Sudikoff was IDB's former Chairman and Chief Executive Officer; Cheramy was IDB's former President; and Wann was IDB's former Chief Financial Officer.  Sudikoff and Wann reside in Los Angeles, and Cheramy now resides in Wyoming.   
+
+ The Commission's Complaint alleged that Sudikoff, Cheramy and Wann fraudulently inflated IDB's 1994 first quarter earnings from $9 million to $15 million in order to meet analysts' projections.  Sudikoff, Cheramy and Wann then publicly disseminated these overstated earnings in a press release and a Form 10-Q quarterly report filed with the Commission.  The Complaint further alleged that Sudikoff, Cheramy and Wann concealed the fraud by fabricating documents, knowingly making false adjusting entries on IDB's books and records in circumvention of IDB's internal controls and lying to IDB's independent auditors.  The Complaint also alleged that Sudikoff engaged in insider trading in IDB stock, and tipped his parents, who also traded IDB stock. 
+
+ In addition to enjoining the defendants from future violations of various antifraud and other provisions of the federal securities laws, as set forth below, Sudikoff was ordered to disgorge $522,505.50, representing his alleged losses avoided on certain insider trades in IDB stock, plus prejudgment interest of $130,060.86, and an Insider Trading and Securities Fraud Enforcement Act penalty of $100,000.  Additionally, based upon their alleged financial fraud, all three defendants were ordered to pay civil penalties pursuant to the Securities Enforcement Remedies and Penny Stock Reform Act of 1990.  Sudikoff and Cheramy were each ordered to pay the maximum penalty of $100,000, and Wann was ordered to pay $50,000.  Sudikoff and Cheramy were also barred from acting as officers or directors of public companies for periods of twelve years and ten years, respectively.  Finally, Cheramy and Wann, both formerly licensed as certified public accountants, have agreed to institution of administrative proceedings against them pursuant to Commission Rule of Practice 102(e) based upon entry of the injunctions against them.  Cheramy has consented to be denied the privilege of appearing or practicing before the Commission; Wann has consented to be denied that privilege with a right to reapply for reinstatement after five years. 
+
+ Each of the defendants consented to entry of a judgment permanently enjoining him from violating the antifraud provisions of Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act"); the quarterly reporting provisions of Section 13(a) of the Exchange Act and Rules 12b-20 and 13a-13; the internal control and books and records provisions of Section 13(b)(5) of the Exchange Act and Rule 13b2-1 thereunder; and the prohibition against lying to accountants of Exchange Act Rule 13b2-2.  Additionally, Sudikoff was permanently enjoined from violating the antifraud provisions of Section 17(a) of the Securities Act of 1933; Sudikoff and Cheramy were permanently enjoined from violating the stock ownership reporting provisions of Section 16(a) of the Exchange Act and Rule 16a-3 thereunder; and Cheramy and Wann were permanently enjoined from violating the reporting provisions of Section 13(a) of the Exchange Act and Rules 12b-20 and 13a-11.  The Commission dismissed allegations that Cheramy had engaged in insider trading of IDB stock. 
+
+   In the related criminal action brought against them by the United States Attorney's Office for the Central District of California, Sudikoff and Cheramy pled guilty to various crimes in 1999.  Sudikoff pled guilty to two counts of securities fraud for insider trading and one count of failing to disclose his IDB stock trades to the Commission.  On December 3, 1999, Judge Pregerson sentenced Sudikoff to twelve months incarceration, a $3 million criminal fine, and a period of three years of supervised release.  Cheramy pled guilty to one count of securities fraud.  On December 16, 1999, Judge Pregerson sentenced Cheramy to three years probation, 500 hours community service and a $250,000 criminal fine. 
+
+   For further information, see Litigation Release No. 15522 (October 1, 1997). 
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1297.txt b/raw/aaer/2000/AAER-1297.txt
new file mode 100644
index 0000000000000000000000000000000000000000..77a01751318ab367d50b87efe6e9ad7be79ad6c2
--- /dev/null
+++ b/raw/aaer/2000/AAER-1297.txt
@@ -0,0 +1,1807 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Russell Ponce 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/538121","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Opinions and Adjudicatory Orders 
+           
+       
+              Russell Ponce
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Russell Ponce
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES EXCHANGE ACT OF 1934 
+Rel. No. 43235 / August 31, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT 
+Rel. No. 1297 / August 31, 2000 
+
+ Admin. Proc. File No. 3-8944 
+
+ 
+ 
+_________________________________________
+                                         :
+                                         :
+            In the Matter of             :
+                                         :
+             RUSSELL PONCE               :
+                                         :
+                                         :
+_________________________________________
+  
+
+ OPINION OF THE COMMISSION 
+
+ CEASE-AND-DESIST PROCEEDING 
+
+  Grounds for Remedial Action  
+
+ Violations of Antifraud, Reporting, and Recordkeeping Provisions 
+
+ RULE 102(e) PROCEEDING 
+
+  Grounds for Remedial Action  
+
+ Improper Professional Conduct 
+
+ Violations and Aiding and Abetting of Violations of Federal Securities Laws 
+
+ Auditor assisted company that materially overstated its assets and understated its losses. Auditor thereby violated, and caused violations of, antifraud provisions and caused and aided and abetted reporting and recordkeeping violations. Auditor also failed to comply with Generally Accepted Auditing Standards.  Held , it is in the public interest to bar auditor from practice before the Commission with a right to reapply after five years and to order that auditor cease and desist from violating or causing any violations or future violations of Sections 10(b), 13(a), and 13(b)(2) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1, and 13a-13 thereunder. 
+
+  
+APPEARANCES: 
+
+  Kenneth M. Christison , for Russell Ponce. 
+
+  Karen Matteson , for the Division of Enforcement and Office of the Chief Accountant. 
+
+ Appeal filed: December 24, 1996 
+Last brief received: April 28, 1997 
+
+  I.  
+
+ The Division of Enforcement and the Office of the Chief Accountant (together the "Division") appeal from the decision of an administrative law judge dismissing this proceeding against Russell Ponce. Ponce formerly was the auditor of American Aircraft Corporation ("AAC").  1  The Division alleges that Ponce violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.  2  The Division further alleges that Ponce willfully aided, abetted, and caused AAC's violations of Exchange Act Sections 13(a) and 13(b)(2) and Exchange Act Rules 12b-20, 13a-1, and 13a-13.  3  
+
+ The Division also alleges that Ponce engaged in improper professional conduct within the meaning of Rule 102(e)(1)(ii)  4  of the Rules of Practice during his audits of AAC's financial statements in which he deviated from Generally Accepted Auditing Standards ("GAAS"). The Division further alleges that Ponce willfully violated or willfully aided and abetted violations of the federal securities laws and regulations thereunder and therefore is subject to discipline under Rule 102(e)(1)(iii).  5  
+
+ The Division seeks a cease-and-desist order against Ponce. It also seeks permanently to deny Ponce the privilege of appearing or practicing before the Commission. We base our findings on an independent review of the record, except with respect to those findings below not challenged on appeal. 
+
+  II.  
+
+ AAC was a public company that registered its common stock pursuant to Exchange Act Section 12(g).  6  AAC originally was formed to manufacture and sell ultralight aircraft.  7  Under Exchange Act Section 13(a)(2), AAC was required to file annual reports on Form 10-K including financial statements certified by an independent public auditor, as well as quarterly reports on Form 10-Q. 
+
+ Russell Ponce, a certified public accountant, acted as AAC's auditor.  8  He audited AAC's annual financial statements for fiscal years 1988 through 1991 and issued opinions representing that his audits had been conducted in accordance with GAAS and that, with adjustments not relevant here, the financial statements accorded with Generally Accepted Accounting Principles ("GAAP"). During this period, Ponce prepared the cash flow statements for inclusion in AAC's quarterly reports filed on Form 10-Q. In addition, Poncereviewed AAC's Forms 10-Q for compliance with Commission requirements. 
+
+ In 1993, in response to a request by the Commission's Division of Corporation Finance, AAC filed an amendment to its 1991 annual report on Form 10-K. In this amended report, Ponce reported that AAC had restated its financials to classify AAC as a "development stage company."  9  AAC changed its annual report to reflect that the aircraft designs had not progressed beyond research and development. AAC also wrote off $654,245 that previously had been recorded as "inventory, work-in-progress, and tooling" in prior reports. This restatement was described as "a correction to accounting methods that were not used at the combination date and for fiscal periods following the combination date to November 30, 1990," which was intended "so as to conform to generally accepted accounting principles and SEC accounting rules." 
+
+ This proceeding examines the propriety of Ponce's opinions with respect to management's valuation of certain assets and Ponce's treatment of costs associated with the tooling and prototypes for certain aircraft. Also at issue is whether Ponce deviated from GAAS by: (1) failing to exercise due professional care; (2) failing to render an accurate audit report; and (3) failing to maintain independence. 
+
+ A.  The License . 
+
+ In February 1988, two weeks before being acquired by Phalanx Organization, Inc. ("Phalanx"), a private development-stage company,  10  AAC purchased from William F. Moody, Jr.,  11  AAC's President andChief Executive Officer, all rights and an exclusive license to manufacture certain aircraft, patent application files, copyrights, and design patents for aircraft and helicopters ("License") for 2.5 million shares of restricted AAC stock.  12  Moody had not produced or sold any product using the intangible assets covered by the License. 
+
+ On March 4, 1988, AAC and Phalanx completed a transaction in which Moody, Phalanx's controlling shareholder, assumed control over AAC. The transaction was structured as a reverse acquisition in which AAC purchased all of Phalanx's assets, which AAC valued at $124,742.  13  AAC paid for the assets by issuing to Phalanx 28,673,440 shares of AAC common stock, or the equivalent of $.0044 a share. As a result of this transaction, Moody became Chairman of the Board, President, and Chief Executive Officer of AAC. Moody had no accounting background. 
+
+ In his answer, Ponce admitted that he understood that the License comprised the major part of AAC's reported assets after its acquisition.  14  In certifying the financial statements for AAC's fiscal years ending November 30, 1988 through November 30, 1991,Ponce accepted management's valuation of the License as an asset worth $4,687,500. Management purported to establish this valuation by discounting by fifty percent the $3.75 per AAC share bid quoted on Nasdaq on the day AAC issued the 2.5 million restricted shares in exchange for the License.  15  
+
+ Ponce admitted that he had reservations about management's $4,687,500 valuation and believed that AAC could not sell the License for that amount. He also testified that, while he valued the License on a cost basis (based on the value of the restricted shares), he thought the number of AAC shares issued for the License was "ridiculously high." Moreover, in February 1988, when it acquired the License, AAC was insolvent, it had a history of operating losses, and its stock was thinly traded.  16  
+
+ None of the projects that employed designs or copyrights covered by the License progressed beyond research and development. The Phalanx Intra-Lift and Phalanx Hunter never advanced beyond paper drawings. While AAC completed the tooling and electronics for the Phalanx Dragon, it could not get an engine for it. AAC developed a prototype of the Phalanx Falcon and the Phalanx Hind, but they were never fully flight tested. The Phalanx Hind was superseded by another aircraft -- the Penetrator -- which was designed for a different market. As discussed below, while the Penetrator began flight testing in December 1991, it was never sold commercially.  17  
+
+ B.  Tooling and Prototype Costs . 
+
+ Adolfo Batista, who had been the in-house accountant for Phalanx, became the in-house accountant for AAC after the acquisition. Batista was not a certified public accountant, and he testified that he was familiar with "only some" of GAAP. Batista prepared draft quarterly financial statements and submitted them to Ponce prior to AAC's filing its reports on Form 10-Q. Ponce prepared the cash flow statements for inclusion in AAC's quarterly reports. Batista relied on Ponce for compliance with Commission requirements. He further testified that he relied on Ponce's certifications of the accounting treatments in the Forms 10-K in preparing the Forms 10-Q. Each year's audited financial statements included a footnote that Ponce drafted stating: "Research and development costs are expensed when incurred." 
+
+ 1. Tooling costs. 
+
+ Batista testified that he had treated tooling costs  18  for the Phalanx Dragon aircraft as expenditures before the reverse acquisition. Batista considered tooling costs to be research and development, which, under Research and Development Arrangements, Statement of Financial Accounting Standards No. 2 (Financial Accounting Standards Board 1982) ("FAS 2"), must be expensed when incurred. In each draft AAC financial statement after the reverse acquisition, Batista continued to treat tooling costs as expenditures. Each time, Ponce prepared adjusting journal entries to reclassify costs attributable to tools, molds, and dies as work in progress, which were capitalized. 
+
+ Ponce testified that he discussed with management the treatment of the tooling costs. Moody insisted that the tools involved no new technology  19  and therefore should not be treated as research anddevelopment costs. Moody executed management representation letters with respect to AAC's 1989, 1990, and 1991 financial statements. In those letters, Moody represented that AAC had progressed beyond the research and development stage in developing certain aircraft and that tooling costs therefore were properly capitalized. In April 1989, the Board of Directors of AAC passed a resolution stating that the tools were an asset of the corporation. There was no other information in Ponce's work papers indicating that the tooling costs were not research and development. 
+
+ Although Moody claimed that the tools involved no new technology, in its fiscal 1989 Form 10-K, AAC stated that: 
+
+ The company acquired designs for certain new militarized versions of FAA certified aircraft described as the Phalanx Falcon and the Phalanx Hind Assault-Lift Gunship, as well as the Phalanx Dragon and the Patriot tilt-prop VTOL aircraft. Further, the company had to expend a significant amount of its capital in the research, development and tooling of these specific products (ie; the Phalanx Falcon, Hind and Patriot).  20  
+
+ As described above, Moody testified that the Falcon and Hind were never flight tested. Ponce nonetheless treated AAC's tools as assets worth $1,435,575 in the annual report for 1989. 
+
+ In its 1990 annual report, dated April 3, 1991, AAC stated that it had spent almost all of its resources completing the proof of concept model of the Penetrator, that the tools for the Penetrator were largely completed,  21  and that AAC anticipated a pre-production prototype flight to take place in April 1991. At this time, the Penetrator was the only aircraft that was actively in development. AAC reported that the company had written off tools for projects thatwere previously deferred in the amount of $508,889.  22  Ponce did not reevaluate whether AAC should classify the remaining tools as research and development even though AAC had written off or deferred certain projects and associated deferred tooling costs. Tools and molds were treated as assets worth $1,222,896 in the 1990 Form 10-K. 
+
+ 2. Prototype costs. 
+
+ In its fiscal year 1991 Form 10-K, AAC disclosed that it had been developing the Penetrator helicopter -- work that required technological modification to the obsolete VH-1 Huey helicopter. Moody testified that he had originally designed this aircraft under the name Phalanx Hind. He had hoped to market the Phalanx Hind to the United States Army for use in training, but, when the Soviet Union collapsed, he renamed it and redesigned it under the Penetrator name for export to Taiwan. In its 1991 Form 10-K, the company further reported that it had produced a "proof of concept" version of the Penetrator that would be disassembled and analyzed at the completion of flight testing. 
+
+ Ponce initially recorded the prototype costs for the Penetrator as research and development to be expensed when incurred. Moody believed, however, that the prototype costs were assets because, according to Moody, AAC was taking an existing certified helicopter, the Huey, and merely changing its outer appearance to make the Penetrator. Moody therefore argued that the Penetrator was not research and development, and, although the model would be disassembled after flight tests, prototype costs should be capitalized. At the hearing, Moody admitted that he had no familiarity with the GAAP definition of research and development. Ponce, nonetheless, acceded to Moody's views and adjusted AAC's books and records to capitalize the prototype costs as inventory for 1991. AAC reported the Penetrator prototype as an asset valued at $562,847 in the 1991 annual report on Form 10-K. 
+
+ C.  Fees AAC Owed to Ponce . 
+
+ As of February 1989, AAC owed Ponce $17,769 for prior services rendered. As of February 1990, AAC owed Ponce $35,759. As of November 1990, AAC owed Ponce $31,000. As of March 1991, AAC owed Ponce $65,000. 
+
+ Ponce testified that, during each year at issue, he had expressed concern to Moody regarding these unpaid fees. Ponce admitted telling Moody that, because AAC was delinquent in paying him, Ponce's independence might be questioned in such a way that the audits would be "unacceptable." By 1990, Ponce told Moody that AAC would have to pay Ponce some of the fees, or Ponce would have to disclaim independence. Moody and Ponce agreed to a payment schedule to be secured by a brokerage account with sufficient AAC shares or other "viable" Nasdaq-listed shares equal to the value of the unpaid balance. Nonetheless, in December 1991, AAC still owed Ponce $54,522 in cumulative audit fees. Ponce testified that, although he felt that he could maintain his independence despite the fees owed him, "when you're owed money there's an appearance, perhaps, of not being independent." 
+
+  III.  
+
+ Under Exchange Act Section 13(a) and Exchange Act Rule 13a-1, AAC was required to file annual reports including, among other things, certain financial information. Pursuant to these requirements, AAC had to file financial statements that: 1) were prepared in conformity with GAAP; and 2) contained a report by an independent auditor certifying that the auditor had audited the company's financial statements, in accordance with GAAS, to determine whether the statements were prepared in conformity with GAAP.  23  Under Exchange Act Rule 13a-13, AAC also was required to file quarterly reports that were not misleading. Under Exchange Act Rule 12b-20, AAC had a duty to correct any misstatements or omissions in documents filed with the Commission.  24  
+
+ For the reasons discussed below, Ponce willfully aided, abetted, and caused AAC's filing of misleading reports and caused it to fail to correct misleading reports in violation of Exchange Act Section 13(a) and Rules 12b-20 and 13a-1.  25  Ponce also willfully aided, abetted, and caused AAC's filing of false annual and quarterly reports that were misleading in violation of Rules 13a-1 and 13a-13. 
+
+ Moreover, Ponce willfully aided, abetted, and caused AAC's violation of Exchange Act Section 13(b)(2) resulting from AAC's failure to keep books, records, and accounts that accurately and fairly reflected the transactions and disposition of AAC's assets.  26  Ponce certified financial statements in which AAC carried, on anovervalued basis, the investment in the License. Ponce further instructed Batista to treat tooling and prototype costs as assets rather than as research and development costs. Because of these deviations from GAAP, AAC overstated its assets for each fiscal year between 1988 and 1991 by amounts ranging from $5,509,069 to $7,097,332 and materially understated its net losses by amounts ranging from $407,142 to $1,153,829. 
+
+ A.  Ponce Improperly Certified Financial Statements that Falsely Overvalued the License . 
+
+ In all four annual reports on Form 10-K and in the intervening quarterly reports on Form 10-Q, AAC listed the License as an asset valued at $4,687,500 based on the adjusted bid price of AAC stock.  27  The valuation of the License was clearly inflated. As noted, two weeks after Moody sold the License for 2.5 million shares of AAC stock, purported to be worth $4,687,500, Phalanx, which Moody controlled, sold assets worth $124,742 for 28,673,440 shares of AAC stock. AAC's valuation of the License necessarily implied either: (1) that in the space of two weeks the per share value of AAC common stock fell a stunning 99.8%, from $1.875 to $.0044; or (2) that Moody, who controlled Phalanx, orchestrated a transaction that had the effect of diluting almost to nothing the value of the shares he received for the License. 
+
+ The record does not support either scenario. AAC suffered no economic reverses between its purchase of the License and its sale to Phalanx. As to the second scenario, had the common stock Moody received for selling the License really been worth $4,687,500, its value would have plummeted to $11,000 (2,500,000 x .0044) as a result of the AAC-Phalanx transaction. There is no indication that Moody sought to accomplish such a personally damaging result.  28  Poncewas fully aware of the transaction with Phalanx, but its unmistakable implications did not affect his opinion. 
+
+ Moreover, Ponce was aware that AAC had operating losses and that the stock was thinly traded. Ponce admits that there was no justification for the value of the License as shown in AAC's financial statements. Despite AAC's erroneous valuation, Ponce certified that the financial statements were prepared in conformity with GAAP. 
+
+ Ponce compounded his failure in subsequent audits. Ponce should have considered whether AAC's inflated valuation of the License declined over time.  29  The Company was required to account for any changes in the useful economic life of its assets.  30  When AAC wrote off or suspended projects involving aircraft designs, patent applications, patents, and copyrights that were included in the License, however, AAC did not adjust the value of the License or correct its reports. Ponce had evidence that AAC was not developing the designs covered by the License. Nonetheless, Ponce did not withdraw or qualify his opinion to reflect the evidence of the declining value of the License or otherwise make footnote disclosure. 
+
+ Ponce asserts that he prepared footnotes to AAC's financial statements that adequately disclosed the method by which AAC initially valued the License such that no investor or shareholder could have been misled. The footnotes state that the company's use of a discounted bid price was "an attempt to account for the reduced market value of these shares" because the shares were restricted. That footnote, however, does not disclose the factors that made the valuation suspect: the subsequent price paid by Phalanx for AACstock; Ponce's belief that the License was not worth the value assigned; the lack of reliability of AAC's bid quotation given the Company's insolvency and financial condition; the low volume of trading in its stock; and, in subsequent years, the suspension of projects associated with the License. Thus, potential investors or shareholders were not given accurate information in the financial statements. 
+
+ Ponce also claims that the valuation of the License was proper because the License had "alternative future uses." In his brief, Ponce does not explain what those uses might be, nor are they documented in the financial statements or his work papers. Rather, during the period at issue, many of the projects that were based on designs in the License were discontinued or suspended.  31  
+
+ B.  Ponce Improperly Certified Financial Statements that Falsely Capitalized Tooling and Prototype Costs . 
+
+ Ponce also improperly treated tooling and prototype costs as assets. As research and development costs, they should have been expensed under FAS 2, which states: "All research and development costs encompassed by this Statement shall be charged to expense when incurred." AAC's in-house accountant, Batista, initially recorded AAC's tooling costs as expenditures in his trial balance sheets for AAC's quarterly reports on Form 10-Q. Batista provided the trial balances to Ponce. For every quarter for four years, Ponce changed Batista's entries to capitalize tooling costs. Batista then included Ponce's changes in the Forms 10-Q filed with the Commission. Ponce testified that AAC's Board of Directors had resolved to treat tooling costs as assets because the tooling would be used for the manufacture of the aircraft. 
+
+ Ponce himself initially treated prototype costs for the Penetrator as expenses but subsequently included the Penetrator in inventory when Moody pressured him to do so. In its 1991 annual report on Form 10-K, AAC reported that it had produced a single "proof of concept" version of the Penetrator that would be disassembled and analyzed at the completion of flight testing,expected to be in August 1992.  32  Moody testified that flight tests on the Penetrator did not begin until December 1991. The prototype was never sold. 
+
+ These tooling and prototype costs fell within the types of matters considered to be research and development. FAS 2 defines research and development as follows: 
+
+ Research is planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service . . . or a new process or technique . . . or in bringing about a significant improvement to an existing product or process. 
+
+ Development is that translation of research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process. . . . It includes the conceptual formulation, design, and testing of product alternatives, construction of prototypes, and operation of pilot plants. It does not include routine or periodic alterations to existing products, production lines, manufacturing processes, and other on-going operations even though those alterations may represent improvements . . . . 
+
+ FAS 2, Paragraph 9 also provides examples of activities that typically would be included in research and development. Among these examples are: 
+
+ d. Testing in search for or evaluation of product or process alternatives. 
+
+ e. Modification of the formulation or design of a product or process. 
+
+ f. Design, construction, and testing of preproduction prototypes and models. 
+
+ g. Design of tools, jigs, molds and dies involving new technology. 
+
+ * * * 
+
+ i. Engineering activity required to advance the design of a product to the point that it meets specific functional and economic requirements and is ready for manufacture. 
+
+ The tools and molds for the aircraft exteriors should have been treated as research and development costs under FAS 2 Paragraph 9.g. None of AAC's aircraft included in the License, for which tooling was developed, advanced beyond the research and development stage. 
+
+ The prototype of the Penetrator, an aircraft not included in the License, involved a unique new exterior that was replacing that of an old aircraft. The Penetrator would have had to undergo flight testing before it could be commercially manufactured. Moody's assertion that no "new" technology was involved because he was simply making cosmetic changes to an existing aircraft is not persuasive.  33  The work on the prototype did not constitute "routine or on-going efforts to improve an existing product" under FAS Paragraph 10.d. A prototype that must be changed because it does not meet commercial marketability expectations is considered research and development.  34  Here, the prototype was originally designed to meet the needs of the United States Army and configured to resemble a Soviet aircraft. AAC had to reconfigure the prototype to resemble a United States aircraft design for potential export to Taiwan and to complete flight testing. 
+
+ Our conclusion is confirmed by AAC's 1991 annual report on Form 10-K, which states that after "engineering modifications 
+
+ . . . the Company will be in a position to manufacture . . . upon receipt of a firm contract. There can be no assurance of the ability of the Company to successfully complete the engineering process or to commence production of the prototype." Clearly, the aircraft was still in development. The prototype was not, as Ponce suggests, properly classified as inventory. It was not "held for sale in the ordinary course of business or . . . in process of production for such sale."  35  
+
+ Ponce also argues that the tools and prototype had "alternative future uses," and were therefore not research and development.  36  These potential uses are not documented in the work papers.  37  Moreover, it is not enough to argue that the tools might have been usable in the future, if the aircraft designs ever were developed sufficiently to be commercially produced.  38  While all research and development arguably would have such an alternative future use in production if the product were commercially developed, this potential does not satisfy 
+
+ FAS 2.  39  In any event, the prototype clearly did not have an "alternative future use" because AAC planned to disassemble it after flight testing. Preproduction prototype costs for the Penetrator fall squarely into FAS 2, Paragraph 9.f. 
+
+  IV.  
+
+ Auditors violate Exchange Act Section 10(b) and Rule 10b-5 whenthey prepare and certify publicly-filed financial statements that they know, or are reckless in not knowing, are false.  40  Ponce prepared and certified financial statements included in AAC's public filings that he knew, or was at least reckless in not recognizing, would mislead public investors who could be expected to rely on the reports.  41  
+
+ Ponce falsely represented that he audited AAC's financial statements in accordance with GAAS. He also falsely represented that AAC's financial statements were presented in conformity with GAAP. His opinion misrepresented that the value of the License -- which was AAC's chief asset -- complied with GAAP and failed to disclose the material information discussed in Section III.A above that called that valuation into question. He changed entries on AAC's books and records to capitalize tooling costs and recorded the Penetrator prototype as inventory at Moody's direction after Batista properly expensed these costs. Ponce stated in notes to the financial statements in AAC's Forms 10-K that research and development costs were expensed when incurred, when, in fact, he treated research and development costs as assets. As a result, AAC appeared to be worth millions of dollars when, in fact, it was insolvent. 
+
+ The law judge concluded that these misstatements were not material. We disagree. AAC's overstatement of its assets, which for fiscal years 1988-91 ranged from 88 to 95%, coupled with the fact that AAC's treatment did not, contrary to Ponce's representation, comply with GAAP, would have been material to a reasonableinvestor. 42  
+
+ In subsequent years, Ponce exacerbated his initial failings. He certified the propriety of the $4,687,500 valuation in succeeding Forms 10-K when he knew that the License was impaired because design projects that involved aircraft covered by the License were abandoned or suspended.  43  At the very least, Ponce was recklessly indifferent to the consequences of his actions for members of the investing public. We accordingly find that Ponce willfully violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. 
+
+  V.  
+
+ The Division seeks permanently to bar Ponce from appearing before the Commission under Rules 102(e)(1)(ii) and (iii) of the Commission's Rules of Practice. As relevant here, a professional may be barred or suspended from appearing before the Commission if he: (1) engaged in unethical or improper professional conduct; or (2) willfully violated or aided and abetted violations of any Federal securities laws or rules and regulations thereunder. 
+
+ We have found above that Ponce willfully violated Exchange Act Section 10(b) and Rule 10b-5 and willfully aided, abetted, and caused AAC's violations of Exchange Act Sections 13(a) and 13(b)(2) and Rules 12b-20 and 13a-1. Therefore, Ponce is subject to discipline under Rule 102(e)(1)(iii). 
+
+ We further conclude that Ponce engaged in improper professional conduct under Rule 102(e)(1)(ii). Ponce did not comply with at least three of the ten general standards of GAAS: he did not act with due professional care, he falsely stated that his audit was conducted in accordance with GAAP, and he was not independent. 
+
+ A. Ponce did not act with due professional care in performing his audit. Ponce performed no investigation to corroborate whether or not the management representation letters were accurate in stating that certain aircraft designs had progressed beyond research and development and that tooling costs therefore were properly capitalized. According to  Montgomery's Auditing , 12th Ed. John Wiley & Sons, 1990 at 47, "due care is not exercised if the auditor fails to corroborate representations of client management that are significant to the financial statements. . . ."  44  Ponce recklessly adopted Moody's view that the tooling and prototype costs were not research and development costs although, as discussed above, he had access to information that should have caused him to question these representations. An auditor cannot rely solely on management representations. The purpose for requiring an independent auditor is to test management's judgment of how the company's financials should be presented.  45  
+
+ Ponce claims that his "acquiescence in the valuation of the designs" was reasonable given the overall "audit environment." We understand this to be a reference to discussions Ponce had with management relating to his treatment of the License. However, the "audit environment" refers to an auditor's duty toconsider the risks and issues associated with a particular audit when determining how thoroughly to investigate the company's transactions.  46  Here, Ponce knew that the License was a critical asset to the company. He was at least reckless in failing to recognize that the Company's valuation of the License was grossly inflated. In subsequent years, he knew that development of certain aircraft under the License had been suspended. Nonetheless, Ponce did not critically evaluate the circumstances surrounding his audit.  47  
+
+ B. Ponce falsely certified that AAC's financial statements were presented in conformity with GAAP, subject to certain adjustments not at issue here. Ponce claims that he "initiated extensive, sometimes heated, discussions about the proper treatment of [AAC's] R&D expenses before agreeing to accept management's position." However, Ponce's obligation was to comply with GAAS and to determine whether management's financial statements complied with GAAP. If the financial statements did not comply with GAAP and management refused to make the required adjustments, Ponce had an obligation to decline to certify AAC's financial statements.  48  Even Ponce conceded in his testimony before the law judge that, because AAC "did not actually get into full scale operations" by commercially producing any aircraft, he should have either removed himself from the engagement or told AAC that he could render only an adverse opinion. 
+
+ C. Ponce did not comply with the independence requirement of GAAS. GAAS requires that auditors not only be independent, but that they appear independent. Auditors are to avoid situations that may lead outsiders to doubt their independence. Unpaid fees for previous audits affect both the independence of an auditor and the public's perception of that auditor. We have stated that: "Generally, prior year audit and other unpaid fees should be paid before a current audit engagement is commenced in order for the accountant to be deemed independent with respect to the currentaudit."  49  
+
+ Ponce was owed money for services rendered throughout the period he was preparing statements for AAC. In 1989, he was owed $17,769 for services rendered in prior periods. By 1991, Ponce was owed $65,000 for services rendered in prior periods.  50  Ponce's1990 agreement with Moody to secure payment of Ponce's fees with a brokerage account established in Ponce's name is further evidence of Ponce's lack of independence. AAC was to deposit into Ponce's account AAC shares or other Nasdaq-listed shares with a market value equal to the unpaid fees. The AICPA Code of Professional Conduct expressly prohibited Ponce from owning AAC stock during the time of the audit. An auditor's "[i]ndependence shall be considered to be impaired if . . . during the period of professional engagement, or at the time of expressing an opinion, a member or a member's firm . . . [h]ad or was committed to acquire any direct or material indirect financial interest in the enterprise."  51  While a deposit of AAC shares never actually occurred, Ponce's agreement to receive such shares further demonstrates his disregard of the requirement that he be independent.  52  
+
+  VI.  
+
+ Although Ponce never raised the issue before the law judge or the Commission, certain of Ponce's conduct at issue occurred more than five years before these proceedings were instituted on February 13, 1996. While these proceedings were pending, the United States Court of Appeals for the District of Columbia Circuit held that the general federal statute of limitations, 28 U.S.C. § 2462, prohibited the imposition of a censure and supervisory suspension in an administrative proceeding under Exchange Act Section 15(b) that had been instituted more than five years after the conduct at issue in those proceedings had occurred. 
+
+ It is well established that "'[r]eliance on a statute of limitations is an affirmative defense and is waived if a party does not raise it in a timely fashion.'"  53  Ponce's failure to raise the statute of limitations in this case constitutes a waiver of that claim.  54  
+
+ Ponce, moreover, engaged in conduct within the five-year period. Ponce audited financial statements for two annual reports that AAC filed with the Commission and prepared cash flow statements included in several quarterly reports. These financial reports contained the above-discussed misstatements during the five-year period preceding the initiation of these proceedings. 
+
+ We previously have stated that we may consider conduct outside the limitations period to determine motive, intent, or course ofconduct.  55  Therefore, even Ponce's conduct outside of the limitations period can inform our decision. 
+
+  VII.  
+
+ A cease and desist order may be issued when a person is found to have violated or caused violations of the Exchange Act. Ponce willfully violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder. Ponce also willfully aided, abetted, and caused AAC's violations of Exchange Act Section 13(a) and Rules 13a-1, 13a-13, and 12b-20, as well as Exchange Act Section 13(b)(2). Ponce's conduct continued over four years in the face of several indications that the valuation assigned to the License and his treatment of the tooling and prototypes costs were in error. While Ponce has not renewed his CPA license, he could still participate in the review of or preparation of a company's books or its periodic filings.  56  A cease and desist order under Section 21C of the Exchange Act is therefore appropriate. 
+
+ Ponce's audits did not comply with GAAS and, contrary to his representations, the financial statements deviated from GAAP. Ponce also willfully violated and aided and abetted violations of antifraud, issuer reporting, and issuer books and records provisions of the Exchange Act. Ponce's conduct demonstrates a reckless disregard of his duties as an independent auditor.  57  We thereforeimpose a bar with a right to reapply in five years. 
+
+ An appropriate order will issue.  58  
+
+ By the Commission (Chairman LEVITT and Commissioners HUNT, CAREY, and UNGER); Commissioner JOHNSON, dissenting in part and concurring in part in result. 
+ 
+Jonathan G. Katz 
+Secretary 
+
+ Commission JOHNSON, dissenting in part and concurring in part in result. 
+
+ I dissent from the Commission's decision to reverse the ALJ's dismissal of the Rule 102(e) charges in respondent's favor. As I have stated in detail elsewhere, I believe the Commission lacks theauthority even to promulgate Rule 102(e).  59  
+
+ As to the remaining charges, I concur in result only. 
+
+ SECURITIES AND EXCHANGE COMMISSION 
+Washington, D.C. 
+
+ SECURITIES EXCHANGE ACT OF 1934 
+Rel. No. 43235 / August 31, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT 
+Rel. No. 1297 / August 31, 2000 
+
+ Admin. Proc. File No. 3-8944 
+
+ 
+ 
+_________________________________________
+                                         :
+                                         :
+            In the Matter of             :
+                                         :
+             RUSSELL PONCE               :
+                                         :
+                                         :
+_________________________________________
+  
+
+ ORDER IMPOSING REMEDIAL SANCTIONS 
+
+ On the basis of the Commission's opinion issued this day, it is 
+
+ ORDERED that Russell Ponce cease and desist from committing or causing any violation of the antifraud, company reporting and books and records provisions of Sections 10(b), 13(a), and 13(b)(2) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1 and 13a-13 thereunder; and it is further 
+
+ ORDERED that Russell Ponce be, and he hereby is, barred from practice before the Commission with the proviso that, after five years, he may reapply to so practice. 
+
+ By the Commission. 
+ 
+Jonathan G. Katz 
+Secretary 
+
+ 
+  Footnotes  
+
+  1 In a separate proceeding, AAC's President and Chief Executive Officer, William F. Moody, Jr., without admitting or denying the findings, was ordered to cease and desist from violating or causing violations of Exchange Act Sections 10(b), 13(a), and 13(b)(2) and Rules 10b-5, 12b-20, 13a-1, and 13a-13 thereunder, pursuant to his offer of settlement.  In the Matter of William F. Moody, Jr. , Securities Exchange Act Rel. No. 36700 (January 11, 1996), 61 SEC Docket 88. AAC also was ordered to cease and desist from violating the same provisions.  In the Matter of American Aircraft Corporation , Securities Exchange Act Rel. No. 36855 (February 16, 1996), 61 SEC Docket 948. Our findings with respect to Moody and AAC, who are not parties to this proceeding, are solely for the purpose of this proceeding. 
+
+  2  15 U.S.C. § 78j and 17 C.F.R. § 240.10b-5. 
+
+  3  15 U.S.C. §§ 78m(a), and 78m(b)(2), and 17 C.F.R. §§ 240.12b-20, 240.13a-1, and 240.13a-13. 
+
+  4  17 C.F.R. § 201.102(e)(1)(ii). 
+
+  5  17 C.F.R. § 201.102(e)(1)(iii). 
+
+  6  15 U.S.C. § 78 l (g). 
+
+  7  AAC was quoted on Nasdaq until April 1993, when AAC was delisted for failure to meet asset, equity, and bid price requirements. On December 20, 1994, AAC filed for bankruptcy under Chapter 11. On August 14, 1995, AAC converted its Chapter 11 reorganization to liquidation under Chapter 7. 
+
+  8  Ponce let his accounting license lapse in 1994. 
+
+  9  A development-stage enterprise is defined by Statement of Financial Accounting Standards No. 7 as a business devoting substantially all of its efforts to establishing a new business in which either: (1) planned principal operations have not commenced, or (2) there have been no significant revenues therefrom. 
+
+  10  At the time of the merger, Phalanx was a research and development company dedicated to creating vertical aircraft. A footnote to Phalanx's financial statements as of January 31, 1988, stated that Phalanx had "engaged in activities related to organization, research and development activities, initial capitalization and further financing of its proposed business;however, it had not incurred or entered into any transactions of an operating nature that generated revenues or expenses. . . ." 
+
+  11  Moody purported to do business as Moody Aircraft Design Bureau, an unincorporated sole proprietorship. 
+
+  12  The design patents included the following aircraft and helicopters: Phalanx Intra-Lift, Phalanx Hunter, Phalanx Dragon, Phalanx Hind, and Phalanx Falcon. 
+
+  13  In a reverse acquisition, a corporation acquires substantially all of the assets of a second corporation in exchange for the stock of the first corporation. After the transaction, the stockholders of the second corporation, through that ownership, own more than 50% of the fair market value of the outstanding stock of the first corporation. Treasury Regulation § 1.1502-75(d)(3) (as amended in 1973). 
+
+  14  AAC's Form 10-Q for May 1988 reported assets of approximately $9 million, including the $4.6 million investment in the License. 
+
+  15  Moody testified that he had no records that reflected his costs in creating the designs and that he could not produce records to substantiate a value. Moody testified that he therefore told Ponce to attribute zero value to the License even though he believed the License had a value as intellectual property. 
+
+  16  APB Opinion No. 16, Paragraph 23 states that "a quoted market price may not always be a reliable indicator of fair value of consideration received because the number of shares issued is relatively large, the market for the security is thin, the stock price is volatile, or other uncertainties influence the quoted price." 
+
+  17  The law judge credited Moody's testimony about the status of these various projects. We do not see any reason to disturb the law judge's assessment of Moody's demeanor. We conclude from Moody's description of the status of these projects thatthey never progressed beyond research and development.  See  Section III.B.  infra . 
+
+  18  These costs covered the materials, labor, and overhead to create molds for construction of aircraft and helicopter exteriors. 
+
+  19  Under FAS 2, Paragraph 9.g., the design of tools involving new technology is considered research and development. Under FAS2, Paragraph 10.g., routine design of tools is not considered research and development. 
+
+  20  The Patriot was not part of the License but was acquired by AAC from another aeronautical company. 
+
+  21  The 1989 annual report stated that the tools for the Penetrator would be completed by April 20, 1990. 
+
+  22  In 1990 and 1991, the tools for the Phalanx Hind were destroyed. 
+
+  23  Regulation S-X, 17 C.F.R. § 210.4  et   seq . A violation of Section 13(a) is established if a quarterly or annual report contains materially false statements or fails to state material information necessary to make the statements in it not misleading.  Meris Laboratories, Inc. , 51 S.E.C. 1305, 1314 (1994) (settled proceeding);  SEC v. Kalvex, Inc. , 425 F. Supp. 310, 315 (S.D.N.Y. 1975).  See also   SEC v. Beisinger Industries Corp. , 421 F. Supp. 691, 694 (D. Mass. 1976) (Section 13(a) reporting requirements designed to insure that investors have adequate information upon which to base their investment decisions). 
+
+  24    See   SEC v. Falstaff Brewing Corp. , 629 F.2d 62, 72 (D.C. Cir.) (company violated Rule 12b-20 by failing to update Form 10-Kthat did not disclose certain material facts related to litigation),  cert. denied , 449 U.S. 1012 (1980);  SEC v. World-Wide Coin Investments, Ltd. , 567 F. Supp. 724, 758-59 (N.D. Ga. 1983) (failure to correct reports containing numerous misrepresentations and omissions resulted in liability for company director for aiding and abetting company's violation of Rule 12b-20). 
+
+  25  The three elements necessary to find aiding and abetting here are: (1) securities law violations by AAC; (2) Ponce's general awareness or knowledge that his actions were part of an overall course of conduct that was illegal or improper; and (3) Ponce's knowing or reckless substantial assistance in the conduct constituting those violations.  Sharon M. Graham , Securities Exchange Act Rel. No. 40727 (November 30, 1998), 68 SEC Docket 2056, 2066,  aff'd , 2000 U.S. App. LEXIS 20938 (D.C. Cir. Aug. 18, 2000);  Donald T. Sheldon , 51 S.E.C. 59, 66 (1992),  aff'd , 45 F.3d 1515 (11th Cir. 1995), and cases cited therein. To establish that Ponce was a cause of AAC's violation, the record must show that Ponce knew or should have known that his actions would contribute to AAC's violation of the securities laws. Section 21C of the Exchange Act. 
+
+  26  Exchange Act Section 13(b)(2) requires that an issuer keep books and records which, in reasonable detail, accurately and fairly reflect its transactions and disposition of its assets.  See   William D. Kyle , Securities Exchange Act Rel. No. 38876 (July 28, 1997), 65 SEC Docket 124 (where manager of company caused company to recognize revenue on orders that were not actually shipped during the fiscal year, manager violated13(b)(2)) (settled proceeding). 
+
+  27  The Division also alleges that, for a number of reasons, the License should have been valued at zero. Given our analysis of the value used for the License, we do not reach this issue. 
+
+  28  Moreover, GAAS states that if an auditor encounters matters that may require special knowledge, including valuation of restricted securities, he should consider consulting a specialist. Codification of Statements on Auditing Standards §336. Ponce never consulted a specialist to assess the value of the AAC stock. 
+
+  29  AAC did not begin amortizing the License until 1990 although amortization should have begun in 1989. APB Opinion 17. 
+
+  30  APB Opinion 17, paragraph 31 states that "a company should evaluate the periods of amortization continually to determine whether later events and circumstances warrant revised estimates of useful lives."  See also  AICPA Issue Paper, "Accounting for the Inability to Recover the Carrying Amount of Long Lived Assets," July 15, 1980 (discussing impairment of value of long lived assets). 
+
+  31  While the Penetrator's design derived, in part, from the Phalanx Hind, nothing in the financial statements or work papers demonstrates that the Penetrator relied on any of the designs, patents, patent applications, or copyrights conveyed to the Company by the License. 
+
+  32  Ponce testified before the law judge that after the acquisition he met with Moody to discuss how to classify the Penetrator. "It certainly wasn't tooling or any form of fixed asset that you might record on the books. And Mr. Moody insisted it was saleable and he wanted this to be an inventory item, and that he intended to sell it . . . ." 
+
+  33    David J. Checkosky , 50 S.E.C. 1180, 1192-93 (1992),  remanded on other grounds , 23 F.3d 452 (D.C. Cir. 1994) (Commission rejected argument that development of a copier was a "reconfiguration [that] did not involve research and development, but simply routine engineering.").  See   also ,  Checkosky v. SEC , 23 F.3d at 456 (no argument that auditors failed to conduct audits in accordance with GAAP) (Silberman, J.), 476 ("[r]esearch designed to improve or refine what already exists, like research aimed at creating new technology, may lead to a dead end.") (Randolph, J.). On appeal of the remanded case, the Court of Appeals dismissed this proceeding because it found that the Commission failed to articulate a clear interpretation of Rule 102(e)(1)(ii), and because it could not discern whether the Commission's finding of liability was based on intentional, reckless, or negligent misconduct.  Checkosky v. SEC , 139 F.3d 221, 223-24 (D.C. Cir. 1998). 
+
+ The administrative law judge found credible Moody's and Ponce's testimony that AAC was a manufacturing enterprise with ready buyers and that it was not a research and development company. Whether activity constitutes research and development, however, is a mixed question of fact and law. While we do not questionthe law judge's finding as to these witnesses' demeanor, we find no evidence in the record that AAC manufactured any aircraft for commercial sale. Nor is there evidence in the record of any contracts or letters of intent to purchase any aircraft. 
+
+  34    Checkosky , 23 F.3d at 477. 
+
+  35  1 Matthew Bender,  Applying GAAP and GAAS  §8.04. 
+
+  36  FAS 2, paragraph 11(a) states that costs of materials and equipment or facilities acquired or constructed for research and development activities that have "alternative future uses" can be capitalized as assets. 
+
+  37  Such evidence might include contracts, engineering studies, electronic designs or models, marketing presentations, letters of intent, or financial commitment letters. The record contains only a March 1991 letter from an individual whorepresents that he has been in "the aircraft and helicopter marketing business for twenty years." He estimated the value of "pre-production aircraft once construction is completed and the flight testing validated." He speculated that the flight-tested aircraft could have value to foreign buyers replacing Hueys or for the movie business. The Penetrator was not flight-tested until December 1991, and this individual does not discuss the impact of disassembly on such a vehicle. There is no evidence that AAC had commitments to use the prototype for either of these suggested purposes. 
+
+  38    Checkosky , 23 F.3d at 477 (research and development continues until product meets specific functional and economic requirements and is ready for manufacturing to begin). 
+
+  39  The Division's expert testified before the law judge that FAS 2 was adopted to make consistent the manner in which companies were accounting for research and development. Many companies had been reflecting costs as assets when the product or design had no future benefit. The accounting profession's Financial Accounting Standards Board, in promulgating this standard, concluded that, although all research and development outlays are made with the expectation of future benefit, an objective determination of when such outlays had resulted in a technologically or economically feasible product was not possible. Appendix B to Statement of Financial Accounting Standards No. 2 (October 1974). Examples of assets having alternative future uses include multiple-use buildings, machinery, and salable patents on products or processes. 
+
+  40    Russell G. Davy , 48 S.E.C. 138, 142-43 (1985),  aff'd , 792 F.2d 1418 (9th Cir. 1986). 
+
+  41  "By certifying the public reports that collectively depict a corporation's financial status, the independent auditor assumes a public responsibility . . . [and] owes ultimate allegiance to the corporation's creditors and stockholders, as well as to [the] investing public. This 'public watchdog' function . . . requires complete fidelity to the public trust. . . . [T]he independent auditor's obligation to serve the public interest assures that the integrity of the securities markets will be preserved."  United States v. Arthur Young & Company , 465 U.S. 805, 817-18 (1984). 
+
+  42  Staff Accounting Bulletin No. 99, 17 C.F.R. § 211 (August 12, 1999) (the omission or misstatement of an item in a financial report is material if, in the light of the surrounding circumstances, the magnitude of the item is such that it is probable that the judgment of a reasonable person relying upon the report would have been changed or influenced by the inclusion or correction of the item) (citing FAS 2).  See   also  Regulation S-X, 17 C.F.R. § 210.4-01(a)(1) (financial statements filed with the Commission that are not prepared in accordance with GAAP are presumed to be misleading or inaccurate despite footnote or other disclosures). 
+
+  43  As the years went by, Ponce was owed increasing fees for his work, which may have motivated his willingness to persist in this conduct. The Division did not allege that the failure to disclose the fees owed to Ponce was evidence of antifraud violations. Here, we note only that AAC's indebtedness to Ponce may have influenced his conduct. 
+
+  44    See also   Russell G. Davy , 48 S.E.C. at 140 (auditor cannot rely on comptroller's journal entries as to ownership of real estate and mineral rights without verification);  Ronald P. Harrington , 48 S.E.C. 457, 460-61 (where auditor based audit primarily on information supplied by management during conversations with them and in documents he received from them, auditor violated GAAS). Because we find that Ponce willfully violated Section 10(b) of the Exchange Act and 10b-5 thereunder, he clearly did not act with due professional care. 
+
+  45    See  Codification of Statements on Auditing Standards ("AU") § 333 ("representations from management are part of the evidential matter the independent auditor obtains, but they are not a substitute for the application of those auditing procedures necessary to afford a reasonable basis for his opinion on the financial statements."). 
+
+  46    See   Ernst & Ernst , 46 S.E.C. 1234, 1262 (1978). 
+
+  47    Ernst & Ernst , 46 S.E.C. at 1262 ("inquisitiveness" and "healthy skepticism" are the hallmark of due professional care). 
+
+  48    U.S. v. Arthur Young & Co. , 465 U.S. at 818 n.13 and accompanying text. 
+
+  49  Financial Reporting Codification § 602.02.b.v.  See also  AICPA Ethics Ruling 52 (ET § 191.103-.104) (independence may be impaired if more than one year's fees are unpaid when the member issues a report on the client's financial statements for the current year). 
+
+ The Division also argued that Ponce was not independent because of his role in preparing the financial statements, specifically by changing Batista's accounting method. The Division contends that Ponce therefore was auditing some of his own work.  See   Thomas P. Reynolds Securities, Ltd. , 50 S.E.C. 721, 724 (1991) (once an accounting firm prepares books of account and financial statements, it has become identified with management and may not perform an audit). This conduct was not charged in the Order Instituting Proceedings, however, and we do not consider it in assessing Ponce's conduct or the appropriate sanctions. 
+
+  50  Ponce suggests that the Division did not demonstrate that the arrearage in his fees was material, and the law judge credited his testimony that he "maintained his independence." We believe that Ponce's actions as described above, particularly his willingness to accept management's directions, belie Ponce's testimony. As noted above, our view is that, in general, any arrearage can affect independence. Ponce, moreover, conceded before the law judge that the arrearage gave the appearance of lack of independence. Ponce did not present any evidence to rebut the presumption that his independence was impaired by being owed more than one year's fees. Ponce did not present any evidence that his financial position was secure enough that the amount of the arrearage did not affect him.  Compare   Anderson v. City of Bessemer , 470 U.S. 564, 575 (1985) ("[F]actors other than demeanor and inflection go into a decision whether or not to believe a witness. Documents or objective evidence may contradict the witness' story; or the story itself may be so internally inconsistent or implausible on its face that a reasonable fact finder would not creditit"). 
+
+  51  AICPA Professional Standards, ET § 101.02 (Jan. 12, 1988). 
+
+  52  In October 1998, the Commission issued a final rule amendment to Rule 102(e) to clarify the standard for determining what constitutes "improper professional conduct." Amendment to Rule 102(e) of the Commission's Rules of Practice, Securities Act Rel. No. 7593 (Oct. 19, 1998), 68 SEC Docket 707. As noted in that release at note 34, we have long held that we have the authority to bring proceedings for knowing, reckless, or intentional conduct under Rule 102(e). Ponce's misconduct was reckless. The amendment merely codified the Commission's longstanding use of this standard. We are not considering the amendment in connection with our determination of Ponce's mental state. 
+
+  53    Harris v. Department of Veterans Affairs , 126 F.3d 339, 343 (D.C. Cir. 1997) (citing  Banks v. Chesapeake & Potomac Telephone Co. , 802 F.2d 1416, 1427 (D.C. Cir. 1986)).  See   also   Zipes v. Trans World Airlines, Inc. , 455 U.S. 385, 393 (1982) ("filing a timely charge of discrimination with the EEOC is not a jurisdictional prerequisite to suit in federal court, but a requirement that, like a statute of limitations, is subject to waiver, estoppel, and equitable tolling");  Aceveo-Ramos v. United States , 961 F.2d 305, 307 (1st Cir.) (rejecting limitations defense in criminal context and noting that "every circuit that has addressed it has held that the statute of limitations is a waivable affirmative defense rather than a jurisdictional bar"),  cert. denied , 506 U.S. 905 (1992);  Wade v. Orange County Sheriff's Office , 844 F.2d 951, 955 (2d Cir. 1988) (statute of limitations is an affirmative defense that is waived if not raised). 
+
+  54    Laurie Jones Canady , Securities Exchange Act Rel. No. 41250 (Apr. 5, 1999), 69 SEC Docket 1468, 1492 n.53,  appeal pending , No. 99-1407 (D.C. Cir.).  See  17 C.F.R. §§ 201.16(d), 201.17(b) (contentions not raised by a party before a law judge or the Commission on appeal may be deemed waived or abandoned). Similarly, Rule 8(c) of the Federal Rules of Civil Procedure (which do not apply to these proceedings) provides, under the heading "Affirmative Defenses," that "a party shall set forth affirmatively [in its pleading] . . . statute of limitations . . . and any other matter constituting an avoidance or affirmative defense." 
+
+  55    See   e.g. ,  Sharon R. Graham , 68 SEC Docket at 2076 n.47. Statutes of limitation do not act as an evidentiary bar. Therefore courts may admit evidence of misconduct outside of an applicable limitations period.  See ,  e.g. ,  United States v. Gavin , 565 F.2d 519, 523 (8th Cir. 1977) (evidence of events extending beyond statute of limitations admissible to show motive, intent, a continuing scheme, and lack of inadvertent action). 
+
+  56  In September 1999, Ponce's license was revoked. It can be reinstated only by the accountancy board. California Business and Professions Code § 5070.6-5070.7. 
+
+  57  An administrative law judge recently granted partial summary disposition to an accountant in a Rule 102(e)(1)(ii) proceedings based on  Checkosky v. SEC , 139 F.3d 221, 223 (D.C. Cir. 1998), which the law judge interpreted as invalidating Rule 102(e)(1)(ii). The Commission reversed the law judge,finding that  Checkosky  did not call into question the Commission's authority to bring cases under Rule 102(e)(1)(ii).  Albert Glenn Yesner , Securities Exchange Act Rel. No. 42030 (Oct. 19, 1999), 70 SEC Docket 2743. Rather, the circuit court dismissed a Rule 102(e)(1)(ii) proceeding against accountants because the court held that it was not clear what standard of scienter the Commission was attempting to prove was violated. 
+
+ We find that Ponce's conduct was reckless. This standard is not novel and has been used in proceedings that predate both  Checkosky  and Ponce's conduct here.  See   Potts v. SEC , 151 F.3d 810, 812 (8th Cir. 1998) (concluding Potts was reckless and sustaining Commission discipline under Rule 102(e)),  cert. denied , 119 S. Ct. 1128 (March 1, 1999). 
+
+  58  All of the contentions advanced by the parties have been considered. They are rejected or sustained to the extent that they are inconsistent or in accord with the views expressed herein. 
+
+  59    See   Albert Glenn Yesner , Exchange Act Rel. No. 42030, 70 SEC Docket 2743 (Oct. 19, 1999); Amendment to Rule 102(e) of the Commission's Rules of Practice, 63 Fed. Reg. 57164, 57172 (Oct. 26, 1998) (Johnson, Comm'r, dissenting); Norman S. Johnson & Ross A. Albert,  Deja Vu All Over Again: The SEC Once More Attempts to Regulate the Accounting Profession Through Rule 102(e) of Its Rules of Practice , 1999 Utah L. Rev. 553;  see also , Norman S. Johnson,  The Dynamics of SEC Rule 2(e): A Crisis for the Bar , 1975 Utah L. Rev. 629; Norman S. Johnson,  The Expanding Responsibilities of Attorneys in Practice Before the SEC: Disciplinary Proceedings Under Rule 2(e) of the Commission's Rules of Practice , 25 Mercer L. Rev. 637 (1974). 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1298.txt b/raw/aaer/2000/AAER-1298.txt
new file mode 100644
index 0000000000000000000000000000000000000000..3d6660afb97d4f8221e1b67ada18f7fc9fd08807
--- /dev/null
+++ b/raw/aaer/2000/AAER-1298.txt
@@ -0,0 +1,1478 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Theodore Ursu III, CPA 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359196","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Theodore Ursu III, CPA
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Theodore Ursu III, CPA
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  43249 / September 6, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1298 / September 6, 2000
+
+  ADMINISTRATIVE PROCEEDING
+ File No.  10279
+
+
+    
+    In the Matter of  
+
+THEODORE URSU III, CPA   
+Respondent.   
+ 
+
+  
+ ORDER INSTITUTING PUBLIC
+ ADMINISTRATIVE PROCEEDINGS
+ PURSUANT TO RULE 102(e) OF THE  
+ COMMISSION'S RULES OF 
+ PRACTICE, MAKING FINDINGS,
+ AND IMPOSING REMEDIAL 
+ SANCTIONS
+ 
+     I.
+
+    The Securities and Exchange Commission (Commission) deems it appropriate that public administrative proceedings be instituted pursuant to Rule 102(e)(2) of the Commission's Rules of Practice [17 C.F.R. §201.102(e)(2)] against Theodore Ursu III (Ursu).  In anticipation of these administrative proceedings, Ursu has submitted an Offer of Settlement (Offer) which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings contained in the Commission's Order except for findings contained in Paragraphs III.A and III.B below, which are admitted, Ursu hereby consents to the entry of this Order Instituting Public Administrative Proceedings Pursuant to Rule 102(e) of the Commission's Rules of Practice, Making Findings, and Imposing Remedial Sanctions.
+
+  II.
+
+    Accordingly, IT IS ORDERED that public administrative proceedings pursuant to Rule 102(e) of the Commission's Rules of Practice be, and hereby are, instituted.
+
+  III.
+
+    On the basis of this Order and the Offer submitted by Ursu, the Commission finds that:
+
+    A. Ursu, age 46, is a certified public accountant.    
+
+    B. On October 22, 1998, Ursu was convicted, pursuant to his guilty plea, of one count of violating 18 U.S.C. §1001, a felony, in  United States of America v. Theodore Ursu III , No. 98 CR 265 (N.D. Ohio).  Ursu was sentenced to four months of home confinement, followed by two years of probation, and was ordered to pay restitution in the amount of $56,469.   
+
+    C. The criminal information charges that in August and September, 1995, Ursu, the senior financial officer of ABS Industries, Inc. (ABS), was responsible for preparing the financial figures to be contained in ABS' Form 10-Q for the third quarter of the 1995 fiscal year.  The information further alleges that in reckless disregard for the truth of these financial figures and the resulting Form 10-Q, Ursu caused the third quarter sales of ABS to be increased by a substantial amount, thereby creating a materially false impression of the corporation's financial health in violation of 18 U.S.C. §1001.
+
+  IV.
+
+    Based on the foregoing, the Commission finds that Ursu has been convicted of a felony within the meaning of Rule 102(e) of the Commission's Rules of Practice.  1    Accordingly, IT IS HEREBY ORDERED that Theodore Ursu III be, and hereby is, permanently suspended from appearing or practicing before the Commission. 
+
+              By the Commission.
+
+                      Jonathan G. Katz
+
+                     Secretary 
+
+  Footnote 
+
+      1       Rule 102(e)(2) [17 C.F.R. 201.102(e)(2)] provides in relevant part that "any person who has been convicted of a felony ... shall be forthwith suspended from appearing or practicing before the Commission."
+ 
+   
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1299.txt b/raw/aaer/2000/AAER-1299.txt
new file mode 100644
index 0000000000000000000000000000000000000000..a21ceec5739ae231a383a7edfc7c99f4255a7aba
--- /dev/null
+++ b/raw/aaer/2000/AAER-1299.txt
@@ -0,0 +1,1368 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Robert H. Sutton 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483971","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Robert H. Sutton
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Robert H. Sutton
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              UNITED STATES SECURITIES AND EXCHANGE COMMISSION
+
+ Washington, D.C. 
+
+ LITIGATION RELEASE NO.  16692  / SEPTEMBER  7, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT RELEASE NO. 1299 
+
+ SECURITIES AND EXCHANGE COMMISSION V. ROBERT H. SUTTON, U. S. District Court for the Northern District of Illinois, Civil Action No. 99 C 6342 (N.D. Ill. September 27, 1999) 
+
+ The Securities and Exchange Commission announced today that on May 18, 2000, the United States District Court for the Northern District of Illinois ordered the entry of a permanent injunction against Robert H. Sutton, thus settling the Commission's securities fraud action against Sutton. 
+
+ Without admitting or denying the Commission's allegations, Sutton consented to the entry of the judgment, which permanently enjoins him from violating Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 promulgated thereunder. Sutton also consented to the entry of the judgment that Sutton violated Section 13(b)(5) of the Exchange Act and Rule 13b2-1 promulgated thereunder by circumventing internal accounting controls and falsifying books, records and accounts. Sutton was ordered to pay a civil money penalty of $15,000. 
+
+ The Complaint alleged that Sutton, at the time a plant controller for a unit of Material Sciences Corporation ("MSC"), a Delaware corporation based in Elk Grove Village, Illinois, violated the federal securities laws by making false entries in the company's inventory and accounts payable records.  The Complaint alleges that, as a result of Sutton's false entries, MSC overstated by 29% the net earnings disclosed in its financial statements for the fiscal year ended February 29, 1996.  The Complaint also alleges that the false entries caused MSC to overstate the net earnings disclosed on MSC's Forms 10-Q during fiscal years 1996 and 1997 by amounts ranging between 6.27% and more than 300%. 
+
+ According to the Complaint, between March 1, 1995, and February 28, 1997, Sutton intentionally fabricated the inventory work in process and entered these values into the general ledger of MSC's Laminates and Composites unit.  According to the Complaint, Sutton's fabrications falsely increased MSC's earnings by artificially inflating the book value of the unit's inventory on hand and understating the unit's cost of sales.  
+
+ The Complaint also alleges that from March 1, 1996, to February 28, 1997, Sutton intentionally made false ledger entries for the Laminates and Composites unit's accounts payable.  According to the Complaint, Sutton's improper entries falsely increased MSC's earnings by artificially deflating its liabilities. 
+
+  
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1300.txt b/raw/aaer/2000/AAER-1300.txt
new file mode 100644
index 0000000000000000000000000000000000000000..c1bd3e97d811910180ae06a9b9dc1a2f61ea8768
--- /dev/null
+++ b/raw/aaer/2000/AAER-1300.txt
@@ -0,0 +1,1366 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Paul Y. Okuda, Stephen A. Thorpe, and David J. Chester 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/483956","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Paul Y. Okuda, Stephen A. Thorpe, and David J. Chester
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Paul Y. Okuda, Stephen A. Thorpe, and David J. Chester
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION Washington, D.C.
+		
+  Litigation Release No. 16689 / September 6, 2000
+
+  SEC SETTLES FRAUD CASE AGAINST JAN R. KIRK, FORMER FERROFLUIDICS CFO
+
+  SEC v. Ferrofluidics Corp., Ronald Moskowitz, Jerome R. Allen, Jan R. Kirk, Stephen P. Morin, Bruce S. Moody, and the 1991 RPM Irrevocable Trust (97 Civ. 7174 (RMB), S.D.N.Y.)
+
+  	On September 1, 2000, the U.S. District Court for the Southern District of New York entered a final judgment against Jan R. Kirk, the former chief financial officer of Ferrofluidics Corporation (SEC v. Ferrofluidics Corp. et al.).  The judgment enjoins him from violating the antifraud provisions and certain reporting, internal controls, and record-keeping provisions of the federal securities laws.  Without admitting or denying the Commission's allegations, Kirk consented to the entry of the judgment, which bars him from acting as an officer or director of a public company.
+
+  In its complaint, filed on September 25, 1997, the Commission alleged that from early 1991 through June 1993, former Ferrofluidics CEO and chairman Ronald Moskowitz devised and, with the assistance of members of the company's senior management and others, including Kirk, implemented a broad-ranging scheme to defraud the investing public and enrich himself by materially inflating the company's revenues and earnings and by making numerous other materially false and misleading disclosures about the company's business.  As part of the scheme, Kirk recruited three private purchasers and orchestrated their phony stock purchases for a sham private placement.  Kirk ultimately received $23,000 in kickbacks for his efforts.  Kirk also helped prepare and disseminate a series of materially false and misleading public statements concerning sales of the company's products to domestic and foreign companies.  Based on the falsely reported profitability of the company, Kirk received a year-end bonus of $27,500.  He also failed to file a Schedule 13D with respect to Ferrofluidics shares that he and Moskowitz controlled as a voting group, after he agreed with Moskowitz to exercise warrants and vote against a shareholder's proposal regarding executive compensation.
+
+  The judgment enjoins Kirk from violating Sections 17(a) of the Securities Act, Sections 10(b), Section 13(d) of the Exchange Act, and Rules 10b-5, 13b2-1, 13b2-2, 13d-1 thereunder.  The judgment also bars him from acting as an officer or director of any public company and orders him to disgorge $50,500 plus prejudgment interest.  Based on Kirk's financial condition, disgorgement was waived and no penalty was assessed.  Proceedings continue against the remaining defendants, Bruce S. Moody and the 1991 RPM Irrevocable Trust.
+
+  In a related criminal proceeding (U.S. v. Jan R. Kirk, 97 Cr. 1032 (MBM) (S.D.N.Y. 1999)), Kirk was sentenced to five years in prison on two counts, conspiracy to violate the securities laws and conspiracy to obstruct justice.  On May 25, 2000, the U.S. Court of Appeals for the Second Circuit affirmed the criminal judgment and sentence as to Kirk (U.S. v. Ronald Moskowitz and Jan R. Kirk, Nos. 99-1745 (L), 99-1769 (CON) (MBM), 2000 U.S. App. LEXIS 11733).
+
+  	The Commission previously instituted five related administrative proceedings:  In the Matter of Paul Y. Okuda, Stephen A. Thorpe, and David J. Chester, Admin. Proc. File No. 3-9345 (July 1, 1997), In the Matter of Helen Chalut and Saleem Noorani, Admin. Proc. File No. 3-9344 (July 1, 1997); In the Matter of  Sheldon S. Traube and George F. Sweeney, Admin. Proc. File No. 3-9283 (March 27, 1997); In the Matter of Kedar Gupta, Alvan Chorney, and Herbert Moskowitz, Admin. Proc. File No. 3-9435 (September 26, 1997); In the Matter of  Dickinson & Co. and T. Marshall Swartwood, Admin. Proc. File No. 3-9321 (May 28, 1997).  All of these matters have been settled.  In related criminal proceedings, former Ferrofluidics CEO and chairman Ronald Moskowitz was sentenced to eight years in prison (U.S. v. Ronald Moskowitz, 97 Cr. 1122 (MBM) (S.D.N.Y. 1999)), and former Ferrofluidics consultant Jerome Allen was sentenced to six months in prison (U.S. v. Robert Jerome Allen, 97 Cr. 979 & 98 Cr. 884 (MBM) (S.D.N.Y. 2000)).
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1301.txt b/raw/aaer/2000/AAER-1301.txt
new file mode 100644
index 0000000000000000000000000000000000000000..01598d473e2b83833821908a55eea4f1d95983dc
--- /dev/null
+++ b/raw/aaer/2000/AAER-1301.txt
@@ -0,0 +1,1362 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | John F. "Pete" Oliver, et al. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484021","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              John F. "Pete" Oliver, et al.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        John F. "Pete" Oliver, et al.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+ Washington, D.C. 
+
+ Litigation Release No. 16702 / September  14, 2000
+   Accounting and Auditing Enforcement Release No. 1301 
+
+ SEC v. JOHN F. "PETE" OLIVER, et al., No. 98 CV 00075 (DJS) (E.D. Mo.) 
+
+  SEC OBTAINS SETTLED JUDGMENTS AGAINST FINAL THREE DEFENDANTS IN OLIVER TRANSPORTATION ACCOUNTING FRAUD CASE  
+
+   The Securities and Exchange Commission has obtained settled final judgments against the remaining three defendants in its accounting fraud case against eight former officers and employees of Oliver Transportation, Inc., a now-defunct trucking company that operated out of Mexico, Missouri.  The judgments, recently entered by the United States District Court for the Eastern District of Missouri, enjoin defendants Willard A. "Tony" Meador, his wife Julie McNabb-Meador, and Patrick M. Jacobi from violating the antifraud provisions of the Securities Act of 1933 (Section 17(a)) and the antifraud and record-falsification provisions of the Securities Exchange Act of 1934 (Section 10(b) and 13(b)(5) and Rules 10b-5 and 13b2-1 thereunder).  The Court's judgment against Willard Meador, who was Oliver Transportation's president, further enjoins Meador from violating an Exchange Act rule that prohibits corporate directors and officers from misleading company accountants (Rule 13b2-2), prohibits Meador from acting as an officer or director of any public company, and orders Meador to disgorge, with interest, $64,140 in illicit proceeds he received from his participation in the fraud.  Based on the demonstrated inability of all three defendants to pay, the Court did not impose civil penalties on any of them and waived Meador's disgorgement obligation.  All three defendants consented to entry of the judgments without admitting or denying the allegations of the Commission's complaint. 
+
+   The Commission's complaint, filed on December 16, 1998, alleged that from June 1993 through August 1995, the defendants unlawfully inflated the financial results of Oliver Transportation by fabricating customer orders for trucking services and recording phony accounts receivable that were reported in financial statements included in public filings and statements made by Oliver Transportation.  According to the complaint, nearly half of Oliver Transportation's reported accounts receivable were fictitious by the time the fraud was uncovered in August 1995.  When the Commission filed its complaint, five of the eight named defendants settled the case without admitting or denying the Commission's allegations.  See Lit. Rel. 16003/AAER 1089 (December 17, 1998).  The settlements announced today conclude the litigation of this matter.     
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1303.txt b/raw/aaer/2000/AAER-1303.txt
new file mode 100644
index 0000000000000000000000000000000000000000..77ba0e2bd9fc5d4aa9ba9935951f92c6f84a62b5
--- /dev/null
+++ b/raw/aaer/2000/AAER-1303.txt
@@ -0,0 +1,1625 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Pier 1 Imports, Inc. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359141","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Pier 1 Imports, Inc.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Pier 1 Imports, Inc.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+  SECURITIES EXCHANGE ACT OF 1934 
+  Release No.  43301 / September 19, 2000  
+
+  ACCOUNTING AND AUDITING ENFORCEMENT 
+  Release No.  1303 / September 19, 2000  
+
+  ADMINISTRATIVE PROCEEDING 
+  File No. 3-10289  
+
+   In the Matter of
+		 PIER 1 IMPORTS, INC.
+		  Respondent.
+		  
+		 Order Instituting Public Administrative
+Proceedings, Making Findings, and
+Imposing a Cease-and-Desist Order 
+	    I.  
+
+   The Commission deems it appropriate that public administrative proceedings be, and hereby are, instituted against Pier 1 Imports, Inc. ("Pier 1") pursuant to Section 21C of the Securities Exchange Act of 1934 (Exchange Act). 
+
+  II.  
+
+   In anticipation of the institution of these proceedings, Pier 1 has submitted an offer of settlement, which the Commission has determined to accept.  Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings, except that Pier 1 admits that the Commission has jurisdiction over it and over the subject matter of these proceedings, Pier 1 consents to the entry of the findings and the imposition of the cease-and-desist order set forth below. 
+
+  III.  
+
+   The Commission finds the following:  1   
+
+  A. FACTS  
+
+    1. Respondent:  Pier 1 Imports, Inc.   
+
+   Pier 1 is a Delaware corporation with headquarters in Fort Worth, Texas.  It is a retailer of home furnishings.  Pier 1's common stock is registered with the Commission pursuant to Section 12(b) of the Exchange Act and trades on the New York Stock Exchange.  Its fiscal year ends annually on the Saturday closest to the last day of February. 
+
+  2. Summary  
+
+ This matter involves Pier 1's failure to properly account for and timely disclose investment losses.  Pier 1's accounting and disclosure failures were caused by two interrelated frauds, one by Pier 1's outside money manager, and the other by Pier 1's former Chief Financial Officer.  First, from at least 1986 through most of 1995, S. Jay Goldinger, a Beverly Hills-based bond specialist, engaged in fraudulent trading that eventually left his clients with losses totaling $100 million.  One of his clients was Pier 1, which lost nearly $20 million.  Second, Pier 1's CFO, Robert G. Herndon, concealed Pier 1's $20 million loss and various other facts about the company's investments with Goldinger.  Herndon's and Goldinger's conduct caused material misrepresentations and omissions in reports filed by Pier 1 with the Commission, as shown in the following table comparing reported to restated current assets and pretax income: 
+
+     
+		 CURRENT ASSETS 
+		 PRETAX INCOME 
+	   Fiscal Period 
+		 Original Reported 
+		 Restated 
+		 % Orig. Overstated 
+		 Original Reported 
+		 Restated 
+		 % Orig. Overstated 
+	     
+	   1993 3rd Q 
+		 313,710 
+		 311,291 
+		 0.78% 
+		 4,792 
+		 2,373 
+		 101.94% 
+	     
+	   1994 1st Q 
+		 334,216 
+		 330,235 
+		 1.21% 
+		 6,622 
+		 2,641 
+		 150.74% 
+	   1994 2nd Q 
+		 313,287 
+		 303,079 
+		 3.37% 
+		 10,355 
+		 4,128 
+		 150.85% 
+	   1994 3rd Q 
+		 322,439 
+		 307,681 
+		 4.80% 
+		 5,685 
+		 1,135 
+		 400.88% 
+	     
+	   1995 1st Q 
+		 341,999 
+		 340,455 
+		 0.45% 
+		 8,011 
+		 6,467 
+		 23.88% 
+	   1995 2nd Q 
+		 343,017 
+		 337,321 
+		 1.69% 
+		 12,554 
+		 8,402 
+		 49.42% 
+	    1995 3rd Q 
+		 344,762 
+		 333,317 
+		 3.43% 
+		 648 
+		 (5,101) 
+		 112.70% 
+	   1995 10K 
+		 352,887 
+		 350,088 
+		 0.80% 
+		 36,027 
+		 33,228 
+		 8.42% 
+	     
+	   1996 1st Q 
+		 343,798 
+		 324,686 
+		 5.89% 
+		 (3,613)* 
+		 (19,926) 
+		 81.87% 
+	   1996 2nd Q 
+		 373,512 
+		 353,798 
+		 5.57% 
+		 15,836* 
+		 15,234 
+		 3.95%  2   
+	   Goldinger's fraud operated as follows: his clients generally gave him funds to invest primarily in Treasury securities.  Goldinger secretly commingled the funds and placed an enormous number of self-hedging trades in Treasury bond futures without allocating the trades to particular clients.  Later Goldinger would allocate the winning and losing trades to particular clients.  Goldinger also wrote "strangles" in the options market-in effect placing risky bets that interest rates would not fluctuate significantly over certain periods-to enhance profits.  These investments were inherently speculative.  Goldinger's misallocation scheme and the strangles allowed him to pay himself large sums, create tax losses for certain clients, and shift funds among accounts as needed to keep his scheme going, which he managed to do for nearly ten years.  3   
+
+ Herndon's fraud involved his concealment of various aspects of Pier 1's investments with Goldinger from Pier 1's board, its auditors, and the public.  This concealment began in 1986 with the first trade Goldinger placed for Pier 1, and ended in 1995 when Goldinger and his clients suffered catastrophic losses after interest rates rose dramatically.  As a result of Herndon's concealment, Pier 1's financial statements and other disclosures in its 1993, 1994, 1995, and 1996 Forms 10-Q, and its 1995 Form 10-K were materially false and misleading, and therefore during these years Pier 1 violated the periodic reporting, books and records, and internal accounting controls provisions of the federal securities laws.  After Pier 1 learned of and disclosed the losses it suffered in 1995, it restated its financial statements for those periods.  The restated financial statements were filed with the Commission in February, May, June, July, and August, 1996.  
+
+    3. Background  
+
+   Pier 1 began investing with Goldinger at the end of fiscal year 1986, and continued to do so for a number of years.  As Pier 1's CFO, Herndon personally supervised all aspects of Pier 1's relationship with Goldinger, including accounting for the returns.      
+
+   During fiscal year 1992 (March 1991 through February 1992), Pier 1 did not invest with Goldinger.  In fiscal year 1993, Herndon directed Pier 1 to invest its funds with Goldinger.  From at least that point forward, at the end of each fiscal year, Herndon instructed Goldinger to liquidate Pier 1's positions and return Pier 1's money, with profits.  This procedure avoided outside auditing of the investments.  After the start of the next fiscal year, Herndon would direct Pier 1 to send Goldinger additional funds to invest on Pier 1's behalf.    
+
+    4. Fiscal Year 1995: Herndon Makes False Statements to Auditors and Falsifies Audit Confirmation   
+
+   Herndon understood that Goldinger was investing on Pier 1's behalf in financial futures and options and knew, or was reckless in not knowing, that such investments were speculative.  However, from at least fiscal year 1995, Herndon told Pier 1's senior management before each board meeting and Pier 1's auditors during their quarterly reviews that Pier 1 was investing in safe, non-risky investments.    Herndon made similar false statements to Pier 1's senior management and auditors in each subsequent quarter through the third quarter of fiscal year 1996. 
+
+   Pier 1 failed to account for fluctuations in the value of its Goldinger investments on a quarterly basis.  Herndon knew, or was reckless in not knowing, that unless a speculative investment such as a future or an option on a future is employed as a "hedge"-that is, unless it is intended to offset a risk to some other investment asset held by the company-it must be marked to market in each quarter in the company's financial statements to recognize fluctuations in its value.  In addition, Herndon knew Pier 1 did not, in fact, use the options and futures trading Goldinger conducted to hedge against any asset. 
+
+   By the end of fiscal year 1995, Goldinger's misallocation scheme had resulted in a nearly $3 million loss in Pier 1's account.  Shortly thereafter, however, Goldinger recouped Pier 1's loss in a flurry of profitable futures trades that he allocated to Pier 1's account.  4    A week after Pier 1's fiscal year-end, Goldinger wired $3,637,616.65-purportedly the remainder of Pier 1's principal plus a profit-to Pier 1.  Pier 1's accounting staff, at Herndon's instruction, booked this money as though it had been received before the end of the fiscal year. 
+
+   Pier 1's auditors discovered that Pier 1 had received the $3.6 million wire after year-end and asked Pier 1's accounting staff about the late receipt.  In response, Pier 1 sent a confirmation request, signed by Herndon and containing information supplied by him, to Goldinger asking him to confirm that at fiscal year-end Pier 1's account held $3,500,000 invested in Treasury Bills bearing an interest rate of 10.21 percent, purchased on May 10, 1994, with a maturity date of February 28, 1995.  The confirmation also stated that as of February 25, 1995-the last day of the fiscal year-Goldinger held $137,616.65 in unpaid interest for Pier 1.  The information in the audit confirmation was incorrect.  As Herndon intended, Goldinger signed the confirmation, falsely attesting that the information was correct and sent it to Pier 1's auditors. 
+
+   As a result of the false confirmation and other false statements by Herndon to Pier 1's senior management and auditors, Pier 1's financial statements contained in its Form 10-K filed with the Commission on May 26, 1995 failed to reflect losses in the Goldinger investments and instead reflected gains, and the Form 10-K materially misled the public with respect to Pier 1's investment strategy.  
+
+    5. Fiscal Year 1996: Pier 1's Investments With Goldinger Result in Almost Total Losses   
+
+   At the beginning of fiscal year 1996, Pier 1 wired Goldinger $15 million to invest.    Account statements sent to Herndon on a daily and monthly basis directly from firms where Goldinger invested Pier 1's funds showed that Goldinger employed the funds in extremely active trading in Treasury bond futures and options and was taking tremendous losses.  In fact, most of the losses during this time were caused by Goldinger deliberately allocating losses to Pier 1 and gains to the accounts of other customers.  Herndon directed that Pier 1 wire Goldinger an additional $4.5 million on April 26, 1995, bringing the total invested to $19.5 million.  By the end of April 1995 Goldinger had allocated to Pier 1's account losses of approximately $14 million.   
+
+   By the end of May 1995, Goldinger's activities resulted in the loss of $18.4 million of Pier 1's $19.5 million investment.  This was apparent from the account statements Herndon received.  Moreover, in May 1995 Goldinger informed Herndon that the investments were not liquid.  By the end of May 1995, Herndon either knew the extent of the losses or was reckless in not knowing them. 
+
+   Herndon did not inform senior management at Pier 1 of any problems with the investments.  Nor did he cause Pier 1 to reflect a decreased value for the investments in its financial statements for the quarter ended May 27, 1995.  During the quarterly audit review, Herndon falsely represented to the auditors that the Goldinger investments were in "T-bills with no mark to market reserve required." 
+
+   By the end of August 1995 Pier 1's investment losses were almost total, as even the most superficial review of Pier 1's account statements would have shown.  Herndon again spoke with Goldinger in August or September, and Goldinger again said that Pier 1's investments were not liquid.  Herndon understood that if Goldinger liquidated the account, Pier 1 would suffer losses.  Goldinger assured Herndon that he would be able to solve the liquidity problem by the end of Pier 1's fiscal year. Herndon allowed him to continue trading in hopes of recouping what Goldinger characterized as temporary losses.  Herndon continued to keep the losses secret and once again failed to ensure that the losses were disclosed in Pier 1's financial statements for the quarter ended August 26, 1995.  Moreover, Herndon again falsely represented to Pier 1's auditors that the investments were in T-bills and did not need to be marked to market. 
+
+   On December 21, 1995, Goldinger told Herndon that he had lost all of Pier 1's money and could not recoup it.  On Friday, December 22, 1995, Herndon finally reported the Goldinger investment losses to Pier 1's Chief Executive Officer.    On the next business day, Tuesday, December 26, 1995, Pier 1 issued a press release announcing non-recurring pre-tax losses of approximately $20 million.   
+
+  B. LEGAL ANALYSIS  
+
+    1. Pier 1 Violated the Reporting Provisions of the Exchange Act.  
+
+   Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder require issuers of registered securities to file annual and quarterly reports with the Commission.  Financial statements contained in these filings must comply with Regulation S-X, which in turn requires conformity with Generally Accepted Accounting Principles ("GAAP").  The information provided in these reports must be accurate.   See, e.g.,   SEC v. Savoy Industries, Inc. , 587 F.2d 1149, 1165 (D.C. Cir. 1978), cert. denied, 440 U.S. 913 (1979).  Pier 1, at all times relevant herein, was subject to the reporting requirements of Section 13(a) of the Exchange Act and rules promulgated thereunder.  Item 303(b)(1) of Regulation S-K requires that the Management Discussion and Analysis ("MD&A") section of public companies' interim reports contain a discussion of material changes in financial condition from the end of the preceding fiscal year to the date of the quarterly report.  In particular, this provision requires registrants to identify the causes of any material changes.   See  Instruction 3 to Item 303(b), Regulation S-K, 17 C.F.R. 229.303(b).  In addition, Exchange Act Rule 12b-20 requires that these periodic reports contain all information necessary to ensure that statements made in them are not materially misleading.  No showing of scienter is necessary to establish a violation of these provisions.   Savoy , 587 F.2d at 1167. 
+
+   Herndon caused Pier 1 to violate Section 13(a) and Rules 13a-13 and 12b-20 by filing quarterly reports for the third quarter of fiscal year 1993, each quarter in fiscal years 1994 and 1995, and the first and second quarter of fiscal year 1996 that included false financial statements and failed to include disclosures regarding its investment strategy.  Herndon caused Pier 1 to violate Section 13(a) and Rule 13a-1 by filing annual reports for fiscal years 1993, 1994, and 1995 that failed to disclose its investment strategy, and an annual report for fiscal year 1995 that materially misstated Pier 1's current assets and net income.  Consequently, Pier 1 gave investors an incomplete, distorted picture of its financial condition and results of operations and denied them the opportunity to see the company "through the eyes of management."  Management's Discussion and Analysis of Financial Condition and Results of Operations, Securities Act Release No. 6835, Securities Exchange Act Release No. 26831 (May 18, 1989).
+
+     2. Pier 1 Violated the Record-Keeping and Internal Control Provisions of the Exchange Act.   
+
+   Section 13(b)(2) of the Exchange Act was enacted to promote the reliability and completeness of financial information disclosed by issuers.   SEC v. Worldwide Coin Investments, Ltd. , 567 F. Supp. 724, 747 (N.D. Ga. 1983).  Section 13(b)(2)(A) requires issuers to make and keep books, records, and accounts that accurately and fairly reflect the transactions and dispositions of their assets.  Section 13(b)(2)(B) requires that issuers maintain internal controls sufficient to ensure that, among other things, transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability for assets.  No showing of scienter is necessary to establish a violation of these provisions.  Promotion of the Reliability of Financial Information and Prevention of the Concealment of Questionable or Illegal Corporate Payments and Practices, Securities Exchange Act Release No. 15570 (Feb. 15, 1979).   
+
+   As discussed above, Herndon caused Pier 1 to fail to quantify the changes in value of its Goldinger investments from quarter to quarter.  GAAP required Pier 1 to mark-to-market speculative investments in its financial statements.  In addition, GAAP required that realized losses on investments in futures and options be recognized in a separate line item on the income statement.   See  Accounting for Futures Contracts , Statement of Financial Accounting Standards No. 80 (Aug. 1984) ("FAS 80").  Since Pier 1 did not hedge any items with the options and futures trading Goldinger conducted, Pier 1 did not meet the requirements for accounting for its investments as hedges from fiscal year 1993 forward.  Consequently, in accordance with FAS 80, Pier 1 should have reflected the interim losses and gains on the Goldinger investments as they occurred by marking them to market.  In addition, due to Herndon's falsification of an audit confirmation, Pier 1 failed to disclose material investment losses in its 1995 Form 10-K.  
+
+   Thus, Pier 1 violated Section 13(b)(2)(A) of the Exchange Act by maintaining false and misleading books, records and accounts concerning the value of its investment portfolio.  Pier 1 violated 13(b)(2)(B) of the Exchange Act by failing to have internal controls that ensured that Pier 1 properly accounted for its investments with Goldinger. 
+
+  IV.  
+
+   Based on the foregoing, the Commission finds that Pier 1 violated Sections 13(a) and 13(b)(2)(A) and (B) of the Exchange Act, and Rules 12b-20, 13a-1, and 13a-13 thereunder. 
+
+  V.  
+
+   In determining to accept Pier 1's offer of settlement, the Commission considered remedial acts promptly undertaken by Pier 1 and cooperation afforded the Commission staff.  
+
+  VI.  
+
+   In view of the foregoing, the Commission finds that it is appropriate to impose the relief agreed to in Pier 1's offer.  Accordingly, it is hereby ordered, pursuant to Section 21C of the Exchange Act, that: 
+
+ Pier 1 cease and desist from committing or causing any violations, and any future violations, of Sections 13(a) and 13(b)(2)(A) and (B) of the Exchange Act, and Rules 12b-20, 13a-1, and 13a-13 thereunder. 
+
+ By the Commission. 
+
+             Jonathan G. Katz
+             Secretary 
+			
+  Footnotes 
+
+   1   The findings herein are not binding on anyone other than Pier 1. 
+
+   2   Pier 1's fiscal year 1993 and 1994 10-Ks did not need to be restated.  Pier 1 moved a $14 million write-off due to a default from its 2 nd  quarter FY 1996 to the 1 st  when it filed its restated 10-Qs.  The income figures marked by an asterisk reflect that change. 
+
+   3   Goldinger's fraud has already been the subject of four settled Commission enforcement actions brought against him and others.   SEC v. Goldinger , Civil Action No. CV 99-11539-LGB (C.D. Cal. Nov. 8, 1999);  SEC v. Strauch , Civil Action No. CV 99-1384-GLT (C.D. Cal. Nov. 8, 1999);  In the Matter of Pairgain Technologies, Inc. , Securities Exchange Act Release No. 42114 (Nov. 8, 1999);  In the Matter of Goldinger , Securities Exchange Act Release No. 42358 (Jan. 27, 2000).   
+
+   4   As discussed above, Goldinger's misallocation scheme involved executing numerous self-hedging futures transactions.  Goldinger placed two-sided bets without allocating the sides to particular customers.  After finding out which side lost and which side won, Goldinger allocated the sides as needed. 
+ 
+
+
+ 
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1304.txt b/raw/aaer/2000/AAER-1304.txt
new file mode 100644
index 0000000000000000000000000000000000000000..a1b60b094b3dbac6601cc0ac87ac6ff5f0374f67
--- /dev/null
+++ b/raw/aaer/2000/AAER-1304.txt
@@ -0,0 +1,1364 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Ronald R. Charnock, Mark C. Hyer, Walter Wilowatyj and Donald C. Yount 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484056","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Ronald R. Charnock, Mark C. Hyer, Walter Wilowatyj and Donald C. Yount
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Ronald R. Charnock, Mark C. Hyer, Walter Wilowatyj and Donald C. Yount
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION 
+           Washington, D.C.
+
+ Litigation Release No.  16709 \ September 19, 2000 
+   Accounting And Auditing Enforcement Release No.  1304  \ September 19, 2000 
+
+ SEC v. Ronald R. Charnock, Mark C. Hyer, Walter Wilowatyj And Donald C. Yount, Civil Action No. 00 CV 02239 (D.D.C.) 
+
+   SEC Settles Fraud Case Against Former Officers of Versatility, Inc. 
+
+   The Securities and Exchange Commission today announced the filing and settlement of securities fraud charges against Ronald R. Charnock, Mark C. Hyer, Walter Wilowatyj and Donald C. Yount, former officers of Versatility, Inc., formerly a Fairfax, Virginia telemarketing software and services company whose securities were listed on NASDAQ.  The Commission's complaint alleges that for fiscal 1997 and the first two quarters of fiscal 1998, Versatility materially overstated its revenues and earnings by improperly recognizing revenue on certain transactions without binding contracts and before reaching agreed-upon performance milestones.  The complaint alleges that Versatility overstated revenue by 49% and overstated net income by 125% for 1997, and, for the first and second quarters of 1998, overstated revenue by 52% and 32% and net income by 101% and 47% respectively.  On April 28, 1998, Versatility announced the restatement of its revenues and earnings for fiscal 1997 and 1998.  Versatility was later acquired by Oracle Corporation.  
+
+ The complaint alleges that Charnock (the former CEO), Hyer (the former controller), Wilowatyj (the former senior vice president of sales) and Yount (the former CFO), participated in Versatility's material misstatements, and alleges that Charnock, Hyer and Yount provided false or misleading management representation letters to Versatility's auditors.  The complaint alleges that the defendants caused Versatility's books to be falsified and that Charnock, Hyer and Yount aided and abetted Versatility's failure to devise and maintain a required system of internal controls.       
+
+ Charnock, Hyer and Yount consented, without admitting or denying the Commission's allegations, to the entry of a final judgment permanently enjoining each of them from (1) violating the antifraud, books and records and false statements to auditors provisions (Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rules 10b-5, 13b2-1 and 13b2-2 thereunder); and (2) aiding and abetting violations of the internal accounting controls provision (Section 13(b)(2)(B) of the Exchange Act).  Charnock and Yount each consented to pay a $50,000 civil penalty.  Hyer consented to pay a $10,000 civil penalty, based in part on his financial condition, and to disgorge $7,200 of losses avoided from his exercise of Versatility stock options.  Wilowatyj consented, without admitting or denying the Commission's allegations, to the entry of a final judgment permanently enjoining him from violating the antifraud and books and records provisions (Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rules 10b-5 and 13b2-1 thereunder).  Wilowatyj consented to pay a $20,000 civil penalty and to disgorge $20,711 of losses avoided from his exercise of Versatility stock options.  Yount, a certified public accountant, also consented, without admitting or denying the Commission's allegations, to the subsequent entry of an administrative order pursuant to Rule 102(e)(3) of the Commission's Rules of Practice, suspending him from practicing before the Commission as an accountant, with a right to reapply after three years.         
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1305.txt b/raw/aaer/2000/AAER-1305.txt
new file mode 100644
index 0000000000000000000000000000000000000000..abb9ec9b1b2d3d4242f0eb793528abdc13fdc27e
--- /dev/null
+++ b/raw/aaer/2000/AAER-1305.txt
@@ -0,0 +1,1379 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Robert G. Herndon 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484061","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Robert G. Herndon
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Robert G. Herndon
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+               SECURITIES AND EXCHANGE COMMISSION 
+  Washington, D.C.  
+
+  Litigation Release No.  16710 / September 19, 2000  
+
+  Accounting and Auditing Release No.  1305 / September 19, 2000  
+
+  Securities and Exchange Commission v. Robert G. Herndon, Civil Action No. 4-00-CV-1564-A (N.D. Tex.) (Sept. 19, 2000)  
+
+ SEC Charges Robert G. Herndon, Former CFO of Pier 1, With Fraudulently Concealing $20 Million Loss in 1995 
+
+ Pier 1 Consents to Cease and Desist Order for 
+ Related Financial Disclosure Violations 
+
+   The Securities and Exchange Commission today filed two settled enforcement actions involving Pier 1 Imports, Inc., an importer and retailer of home furnishings based in Fort Worth, Texas, and Robert G. Herndon, Pier 1's former Chief Financial Officer.  Both actions stem from Pier 1's relationship with money manager S. Jay Goldinger of Beverly Hills.   
+
+   The first of today's actions, filed in federal district court in Texas, charges Herndon with concealing a $20 million loss in Pier 1's investment funds in 1995 from the company's senior management and its outside auditors, and with circumventing and failing to implement internal controls to properly account for the investments.  Herndon's conduct also caused Pier 1 to violate the books and records and internal accounting control provisions of the securities laws.  Herndon has agreed to settle the Commission's charges.   
+
+   The second action is an administrative proceeding against Pier 1 in which Pier 1 has consented to cease and desist from violating the reporting and record-keeping provisions of the securities laws.   
+
+   These charges stem from the Commission's investigation into a fraud by S. Jay Goldinger, once a well-known Beverly Hills-based money manager, upon his clients, which included Pier 1 and another publicly-traded company, Pairgain Technologies, Inc.  In November 1999 the Commission brought cases against Goldinger, Pairgain's CEO and CFO, and Pairgain itself.   SEC v. Goldinger , Civil Action No. CV 99-11539-LGB (C.D. Cal. Nov. 8, 1999);  SEC v. Strauch , Civil Action No. CV 99-1384-GLT (C.D. Cal. Nov. 8, 1999);  In the Matter of Pairgain Technologies, Inc. , Securities Exchange Act Release No. 42114 (Nov. 8, 1999).  Later, the Commission permanently barred Goldinger from associating with any securities broker or dealer.   In the Matter of Goldinger , Securities Exchange Act Release No. 42358 (Jan. 27, 2000). 
+
+   The complaint filed today against Herndon alleges the following: from at least 1986 through most of 1995, Goldinger engaged in fraudulent trading that eventually left his clients with losses totaling $100 million.  One of his clients was Pier 1, which lost nearly $20 million.  As Pier 1's CFO, Herndon fraudulently concealed Pier 1's $20 million loss and various other facts about the company's investments with Goldinger from both Pier 1's senior management and its outside auditors.  Herndon's fraudulent conduct caused material misrepresentations and omissions in reports filed by Pier 1 with the Commission. 
+
+ Without admitting or denying the complaint's allegations, Herndon agreed to settle the charges against him by consenting to a final judgment.  The final judgment will enjoin Herndon from violating Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5, 13b2-1, and 13b2-2 thereunder; enjoin him from aiding and abetting violations of Sections 13(a), 13(b)(2)(A) and (B) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder; prohibit him from serving as an officer or director of a public company; and order him to pay $75,000 as a civil money penalty.   
+
+ Herndon has also agreed to settle administrative proceedings under Rule 102(e) of the Commission's Rules of Practice, to be instituted after entry of the injunction, which will deny him the privilege of appearing or practicing before the Commission as an accountant. 
+
+ In the related administrative proceeding filed today, Pier 1, without admitting or denying the Commission's findings, consented to an order finding that the company violated the periodic reporting, books and records, and internal control provisions of the Exchange Act in connection with the losses in the Goldinger investments.  The order directed Pier 1 to cease and desist from committing or causing any violations or future violations of the following provisions: Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder.   In the Matter of Pier 1 Imports, Inc. , Exchange Act Release No. 34-43301, September 19, 2000. 
+
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1307.txt b/raw/aaer/2000/AAER-1307.txt
new file mode 100644
index 0000000000000000000000000000000000000000..2680bc07379f5e41843cf5ae13dc99fda0575984
--- /dev/null
+++ b/raw/aaer/2000/AAER-1307.txt
@@ -0,0 +1,1470 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Edward Cheramy 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359086","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Edward Cheramy
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Edward Cheramy
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.43327 / September 22, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1307 / September 22, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No. 3-10297 
+
+   In the Matter of
+		 EDWARD CHERAMY,
+		  Respondent.
+		  
+		 ORDER INSTITUTING PUBLIC  ADMINISTRATIVE PROCEEDING  PURSUANT TO RULE 102(e)  OF THE COMMISSION'S RULES  OF PRACTICE, MAKING FINDINGS  AND IMPOSING REMEDIAL SANCTION 
+	    I.  
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate that a public administrative proceeding be instituted against Edward Cheramy ("Cheramy") pursuant to Rule 102(e) /  of the Commission's Rules of Practice. 
+
+   Accordingly,  IT IS HEREBY ORDERED  that said proceeding be, and hereby is, instituted. 
+
+  II.  
+
+   In anticipation of the institution of this public administrative proceeding, Cheramy has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings contained in this Order, except that Cheramy admits the jurisdiction of the Commission over him and over the subject matter of this proceeding and the entry of a Final Judgment of Permanent Injunction and Other Relief against him as set forth in paragraph III.E., Cheramy consents to the entry of this Order Instituting Public Administrative Proceeding Pursuant to Rule 102(e) of the Commission's Rules of Practice, Making Findings and Imposing Remedial Sanction ("Order") as set forth below. 
+
+  III.  
+
+   On the basis of this Order and the Offer, the Commission finds that: 
+
+   A. Cheramy, age 56, was the President of IDB Communications Group, Inc., a member of its Board of Directors and a member of the Board's audit committee during the relevant period.  Cheramy ceased to be employed by IDB Communications Group, Inc. as of December 30, 1994.  Cheramy is now retired and resides in Jackson Hole, Wyoming.  Previously, Cheramy was licensed as a certified public accountant by the State of California from 1974 to 1989. 
+
+   B. IDB Communications Group, Inc. ("IDB") is a telecommunications company that during the relevant period was based in the Los Angeles, California area.  Until IDB was acquired in 1995, its common stock was registered with the Commission under Section 12(g) of the Securities Exchange Act of 1934 ("Exchange Act") and traded on the over-the-counter market through NASDAQ. 
+
+   C. On September 30, 1997, the Commission filed a Complaint in the United States District Court for the Central District of California alleging that three IDB officers, including Cheramy, had engaged in a scheme to fraudulently inflate IDB's 1994 first quarter earnings from $9 million to $15 million.  Securities and Exchange Commission v. Jeffrey P. Sudikoff, Edward Cheramy and Rudy Wann, Civil Action No. 97-7207 DDP (RCx) (C.D. Cal.).  The Complaint further alleged that Cheramy, among other things, made false statements to securities analysts and IDB's auditors, made false adjusting entries on IDB's books in circumvention of IDB's internal controls in order to inflate IDB's earnings, and publicly disseminated IDB's inflated earnings through an IDB press release and IDB Form 10-Q and Form 8-K filings with the Commission. 
+
+   D. On May 28, 1999, Cheramy pled guilty to one count of securities fraud in violation of Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 thereunder [17 C.F.R. § 240.10b-5], in the related criminal action, United States of America v. Jeffrey Sudikoff and Edward Cheramy, CR 97-1176 DDP (C.D. Cal.).  Pursuant to his guilty plea, on December 16, 1999, Cheramy was sentenced to pay a $250,000 fine, and to three years probation and 500 hours of community service. 
+
+   E. On August 21, 2000, the United States District Court for the Central District of California entered a Final Judgment Of Permanent Injunction And Other Relief Against Defendant Edward Cheramy ("Judgment"), which:  (1) permanently enjoins Cheramy from future violations of Sections 10(b), 13(a), 13(b)(5) and 16(a) of the Exchange Act and Rules 10b-5, 12b-20, 13a-11, 13a-13, 13b2-1, 13b2-2 and 16a-3 thereunder; (2) orders Cheramy to pay a $100,000 civil penalty to the U.S. Treasury under Section 21(d)(3) of the Exchange Act; and (3) bars Cheramy for a period of ten years, pursuant to Section 21(d)(2) of the Exchange Act, from serving as an officer or director of a reporting company.  Cheramy consented to the entry of the Judgment without admitting or denying any of the allegations of the First through Fifth Claims or the Seventh Claim for Relief in the Complaint. 
+
+  IV.  
+
+   Based on the foregoing, the Commission deems it appropriate to accept the Offer submitted by Cheramy and to impose the remedial sanction specified in the Offer. 
+
+   Therefore,  IT IS HEREBY ORDERED , effective immediately, that Cheramy is denied the privilege of appearing or practicing before the Commission as an accountant. 
+
+   By the Commission. 
+
+               Jonathan G. Katz
+               Secretary 
+
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1308.txt b/raw/aaer/2000/AAER-1308.txt
new file mode 100644
index 0000000000000000000000000000000000000000..e9cd44ea40ab4eb85b6b822cb9a79646986a9121
--- /dev/null
+++ b/raw/aaer/2000/AAER-1308.txt
@@ -0,0 +1,1366 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Clifford E. Hotte, et al. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484121","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Clifford E. Hotte, et al.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Clifford E. Hotte, et al.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              UNITED STATES SECURITIES AND EXCHANGE COMMISSION
+  
+LITIGATION RELEASE NO. 16722 / September 25, 2000
+  
+  ACCOUNTING AND AUDITING ENFORCEMENT RELEASE NO.  1308 / September 25, 2000 
+ SECURITIES AND EXCHANGE COMMISSION v. CLIFFORD E. HOTTE, et al. (United States District Court, E.D.N.Y., Civil Action No. CV00-5704)
+  The Securities and Exchange Commission ("Commission") announced the filing, on September 21, 2000, of a complaint in the United States District Court for the Eastern District of New York, alleging a financial fraud conducted by former officers and employees of Health Management, Inc.  Health Management, which was purchased by another company in 1997, was headquartered in Holbrook, New York, and provided outpatient drug therapies to individuals and performed management services for the health care industry.  Without admitting or denying the Commission's allegations, all of the defendants have consented to the entry of Final Judgments and Orders.
+  
+The complaint alleges that, from approximately July 1994 through February 1996, senior officers and employees of Health Management, including defendants Clifford E. Hotte, Chief Executive Officer and Chairman of the Board, currently incarcerated; Drew Bergman, of Merrick, New York, Chief Financial Officer; Michael R. Norman, of Stockton, New Jersey, Chief Operating Officer; Luis E. Gomez, of Jericho, New York, Controller; Irwin Hirsh, of Pittsburgh, Pennsylvania, Vice President of Purchasing; and Michael Escuder, of Flushing, New York, Supervising Pharmacist, took part in a scheme to falsify the books and records of the company in order to meet quarterly and annual earnings expectations.  Beginning with the first quarter of fiscal 1995 and continuing through the second quarter of fiscal 1996, Health Management issued fraudulent financial statements and press releases, which materially overstated its revenues, earnings and financial condition.  Hotte and Bergman directed and supervised the fraudulent scheme at Health Management.  The complaint also alleges insider trading by Bergman and his broker, Theodore R. Hunter, of Kula, Hawaii.
+  
+As part of the scheme, the complaint alleges that the defendants falsified the aging of accounts receivables to mislead Health Management's auditors and to overstate revenues.  The defendants also falsely inflated inventory in order to increase earnings for the fiscal year ended April 30, 1995.  They told the auditors that almost $2 million of inventory had been in transit on the day that inventory was counted, when in fact this inventory did not exist.  As a result, the company reported inflated revenue which, together with other fraudulent adjustments, overstated Health Management's net income for the year by 72 percent.
+  
+The complaint also alleges that defendants Bergman and Hunter engaged in unlawful insider trading in the common stock of Health Management.  In late May 1995, after learning that Health Management would not meet expected earnings estimates for the quarter, Bergman sold Health Management stock from one of his personal brokerage accounts, avoiding approximately $13,563 in losses.  In addition, immediately prior to a June 14, 1995 public announcement by Health Management of the lower than expected earnings, Bergman tipped Hunter about the substance of the announcement.  Following the announcement, the price of Health Management common stock dropped by 28 percent.  While in possession of the material, nonpublic information furnished by Bergman, Hunter traded securities in his own and 27 of his client accounts, including accounts for Bergman, Bergman's children and brother, thereby avoiding losses in the total amount of $95,130.
+  
+The Final Judgments and Orders permanently enjoin all of the defendants from violations of Section 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934 ("Exchange Act").  In addition, Bergman and Hunter are permanently enjoined from violating Section 17(a) of the Securities Act of 1933.  Hotte and Bergman are also permanently enjoined from violating Sections 13(a), 13(b)(2)(A) and 13(b)(5)of the Exchange Act and Rules 12b-20, 13a-1, 13a-13, 13b2-1 and 13b2-2.   Norman, Gomez and Hirsh are also permanently enjoined from violating Section 13(b)(5) of the Exchange Act and Rules 13b2-1 and 13b2-2..  Escuder is also enjoined from violating Section 13(b)(5) of the Exchange Act and Rule 13b2-1.  In addition, the Orders bar Hotte and Bergman from serving as officers or directors of any reporting company.  Bergman is ordered to disgorge $23,775, plus prejudgment interest, and to pay a civil penalty of $53,775.  Gomez, Escuder and Hirsh are ordered to pay civil penalties of $10,000 each.  Hunter is ordered to disgorge $84,918, plus prejudgment interest, and to pay a civil penalty of $84,918.  No civil penalty is ordered against Norman based on his demonstrated inability to pay. 
+  
+Hotte was convicted by a jury of securities fraud, mail fraud and wire fraud, and in October 1998 was sentenced to nine years in prison, and ordered to pay $250,000 in fines and $9.5 million in restitution.  He is currently incarcerated.  Because of the criminal fines and restitution previously imposed, the Commission did not seek additional civil penalties from Hotte.
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1311.txt b/raw/aaer/2000/AAER-1311.txt
new file mode 100644
index 0000000000000000000000000000000000000000..9b8a79f4adae1c459acfb6c04eade459eec08a18
--- /dev/null
+++ b/raw/aaer/2000/AAER-1311.txt
@@ -0,0 +1,1549 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Centennial Technologies, Inc. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359061","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Centennial Technologies, Inc.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Centennial Technologies, Inc.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES ACT of 1933 
+Release No. 7897 / September 26, 2000 
+
+ SECURITIES EXCHANGE ACT of 1934 
+Release No. 43345 / September 26, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT 
+Release No. 1311 / September 26, 2000 
+
+ ADMINISTRATIVE PROCEEDING 
+File No. 3-10303 
+
+  
+
+ 
+	 
+		 
+			 In the Matter of
+			 CENTENNIAL TECHNOLOGIES, INC., 
+			Respondent. 
+			 
+			 ORDER INSTITUTING CEASE- 
+			AND-DESIST PROCEEDINGS 
+			PURSUANT TO SECTION 8A OF 
+			THE SECURITIES ACT OF 1933 
+			AND SECTION 21C OF THE 
+			SECURITIES EXCHANGE ACT 
+			OF 1934, MAKING FINDINGS 
+			AND IMPOSING A CEASE-AND 
+			DESIST ORDER 
+		 
+	 
+ 
+
+ I. 
+
+ The Securities and Exchange Commission ("Commission") deems it appropriate that a public administrative proceeding be, and hereby is, instituted pursuant to Section 8A of the Securities Act of 1933 ("Securities Act") and Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against respondent Centennial Technologies, Inc. ("Centennial"). 
+
+ II. 
+
+ In anticipation of the institution of these cease-and-desist proceedings, Centennial has submitted an Offer of Settlement ("Offer") which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission, or in which the Commission is a party, and without admitting or denying the Commission's findings contained herein, except that the Respondent admits that the Commission has jurisdiction over it and the subject matter of these proceedings, Centennial consents to the issuance of this Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings and Imposing a Cease -and-Desist Order. 
+
+ III. 
+
+ On the basis of this Order and the Offer, the Commission makes the following findings:  1   
+
+ 1. Centennial is a Delaware corporation based in Massachusetts. It is a high-technology company that manufactures computer-related hardware and software, including personal computer cards ("PC cards"). At all relevant times, Centennial's securities were registered with the Commission pursuant to Section 12(b) of the Exchange Act and it was required to file reports with the Commission pursuant to Section 13(a) of the Exchange Act. Centennial began trading as a public company on the American Stock Exchange in April 1994. It became listed on the NYSE in November 1996 and was delisted on March 3, 1997. Its stock currently trades on the over-the-counter bulletin board. 
+
+ 2. Between April 1994 and December 31, 1996, Centennial made material misstatements about its revenues, assets and net income in public announcements and in documents filed with the Commission. On June 12, 1997, Centennial filed restated financial results for each fiscal period from April 1994 through December 31, 1996 (the "restatement period"). Prior to the restatement, Centennial had reported approximately $12 million in profits during the restatement period. In fact, for this period, Centennial had overstated income by approximately $40 million and had actually incurred losses of approximately $28 million. 
+
+ 3. Centennial's misrepresentations and misstatements about its financial condition resulted from multiple fraudulent practices instigated by Centennial's former chief executive officer and its former chief financial officer. Among other things: 
+
+  
+
+ 
+	 Centennial improperly recognized revenue from sales in which the customer had no real obligation to pay for product, from sales where phony product was shipped, and from sales where no product was shipped at all. For example, for the fiscal year ended June 30, 1996, Centennial recognized $1.6 million in revenues from sales of "Flash 98," aCentennial product that did not actually exist. In addition, in December 1996, Centennial's former chief executive officer and its former chief financial officer directed employees to ship fruit baskets and polo shirts to companies owned by the former chief executive officer's friends. Centennial's former chief financial officer then created fictitious sales documentation to make it appear as if $2 million of PC cards had been sold rather than fruit baskets and polo shirts. In total, $22.6 million of improperly recorded revenue was reversed in the restatement.
+	  
+	 
+	 Centennial overstated its inventory values and levels in a variety of ways. It falsified invoices to support inflated inventory pricing, manipulated inventory counts, understated the cost of sales and included phony inventory. For example, in the spring of 1996, Centennial's former chief executive officer and its former chief financial officer caused 27,000 PC cards to be manufactured. Although these PC cards looked like the typical product that Centennial manufactured, they consisted of outer metal casing only and had no inner circuitry. These dummy PC cards were included in inventory and counted by the independent auditors during Centennial's annual audit. These empty cards constituted a material amount of the finished goods inventory Centennial reported on its balance sheet for the quarters ended June 30, 1996 and September 30, 1996. As of December 31, 1996, Centennial's inventory was overstated by $8.8 million, or 78%.
+	  
+	 
+	 Centennial also overstated the value of its fixed assets in several ways. Non-existent additions to fixed assets were made on the company's books and the cost of  bona fide  fixed asset additions was padded to inflate their reported value. These additions consisted primarily of small dollar amounts (less than $5,000) which the former chief financial officer believed, based on his prior experience working for the outside auditing firm, the auditors would not check. Moreover, Centennial's books and records were adjusted to falsely increase the reported value of fixed assets and certain inventory items were improperly reclassified as fixed assets. For the quarter ended June 30, 1996, for example, Centennial's former chief financial officer improperly caused $820,000 of inventory to be reclassified as fixed assets on Centennial's books. To support this reclassification, documentation was altered to falsely reflect fixed asset additions. As of December 31, 1996, Centennial's fixed assets were overstated by $2.7 million, or 95%.
+	  
+	 
+	 Centennial invested in and loaned money to other companies which it improperly valued on its books. For example, in July 1996, Centennial loaned $500,000 to a company owned by close associates of Centennial's former chief executive officer. The borrowing company then lent this money to one of its own affiliates, which in turn used the funds to repay an outstanding debt to Centennial. Centennial also loaned money to small companies (owned by the former chief executive officer's friends and associates) which had no real possibility of repaying the amounts owed. In the restatement, $15.8 million of Centennial's investments and notes were written off. 
+ 
+
+ 4. As a result of the practices described above, and others, Centennial materially misrepresented its financial condition and earnings in its periodic filings of Forms 10-K and Forms 10-Q with the Commission. Centennial's misrepresentations to the Commission included the following: 
+
+  
+
+ 
+	 For the fiscal year ended June 30, 1994, Centennial filed an inaccurate Form 10-KSB in which sales were overstated by $413,000, inventories were overstated by $1.79 million and total assets were overstated by $2.4 million. Centennial reported net income of $464,000, although it had actually lost $1.67 million, an overstatement of $2.1 million.
+	  
+	 
+	 For the fiscal year ended June 30, 1995, Centennial filed a Form 10-K that falsely reported $8.6 million in inventory, assets of $18.2 million, sales of $12.4 million, and net income of $874,000. In fact, sales were overstated by $3.5 million, inventory was overstated by $6.4 million and rather than having net income of $874,000, Centennial incurred a net loss of $5.9 million, resulting in a $6.7 million overstatement.
+	  
+	 
+	 For the fiscal year ended June 30, 1996, Centennial filed a Form 10-K that falsely reported sales of $37.8 million, an overstatement of $4.4 million. In this filing, inventory was reported at $18.2 million, a $9.98 million overstatement. Net income of $4.9 million was reported, representing a $9.2 million overstatement, as Centennial had actually incurred a net loss of almost $4.3 million.
+	  
+	 
+	 On January 30, 1997, Centennial issued a press release announcing its financial results for the three months ended December 31, 1996. The release reported sales of approximately $31.7 million, and net income of approximately $3.5 million. Of the $31.7 million in reported sales, $8.4 million consisted of improperly recognized revenue that was reversed in the restatement. Rather than having net income of $3.5 million, the company had lost $13.5 million. 
+ 
+
+ 5. As a result of the practices described above, Centennial committed or caused violations of Section 17(a) of the Securities Act to be committed by making misrepresentations in documents filed with the Commission in connection with the company's secondary offering of securities in March 1996. 
+
+ 6. Centennial committed or caused violations of Section 10(b) of the Exchange Act and Rule 10b-5 thereunder by making misrepresentations relating to its asset valuation, revenue, sales and net income in documents filed with the Commission. 
+
+ 7. Centennial committed or caused violations of Section 13(a) of the Exchange Act by failing to file with the Commission information and documents in accordance with the rules and regulations prescribed by the Commission. 
+
+ 8. Centennial committed or caused violations of Section 13(b)(2)(A) of the Exchange Act by failing to make and keep books, records and accounts which, in reasonable detail, would accurately and fairly reflect its transactions and dispositions of its assets. 
+
+ 9. Centennial committed or caused violations of Section 13(b)(2)(B) of the Exchange Act by failing to devise and maintain an adequate system of internal accounting controls. 
+
+ 10. Centennial committed or caused violations of Rule 12b-20 of the Exchange Act by failing to include material information that would make required statements not misleading. 
+
+ 11. Centennial committed or caused violations of Rule 13a-1 of the Exchange Act by filing with the Commission false and misleading annual reports. 
+
+ 12. Centennial committed or caused violations of Rule 13a-13 of the Exchange Act by filing with the Commission false and misleading quarterly reports. 
+
+ 13. Centennial committed or caused violations of Rule 13b2-1 of the Exchange Act by maintaining false and misleading books, records and accounts. 
+
+ IV. 
+
+ In determining to accept the Offer, the Commission considered remedial acts undertaken by the Company and the cooperation afforded the Commission staff. 
+
+ V. 
+
+ In view of the foregoing, the Commission deems it appropriate to accept the Offer submitted by Centennial and accordingly, IT IS HEREBY ORDERED, pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act, that Centennial Technologies, Inc. cease and desist from committing or causing any violation and any future violation of Section 17(a) of the Securities Act and Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13 and 13b2-1 thereunder. 
+
+ By the Commission. 
+
+ Jonathan G. Katz 
+
+ Secretary 
+
+  
+
+ 
+ Footnote 
+
+ 
+	 
+		 
+			   1    
+			 The findings herein are not binding on anyone other than the Respondent. 
+		 
+	 
+ 
+
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1312.txt b/raw/aaer/2000/AAER-1312.txt
new file mode 100644
index 0000000000000000000000000000000000000000..872c0f23a48598cdf6d67b2e778a1094bf2b6606
--- /dev/null
+++ b/raw/aaer/2000/AAER-1312.txt
@@ -0,0 +1,1370 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | John Daws, Thomas Butler and Mark Folit, United States District Court for the Northern District of California 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484151","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              John Daws, Thomas Butler and Mark Folit, United States District Court for the Northern District of California
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        John Daws, Thomas Butler and Mark Folit, United States District Court for the Northern District of California
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+               SECURITIES AND EXCHANGE COMMISSION  
+
+ Litigation Release No. 16728 / September 27, 2000  
+
+    Accounting and Auditing Enforcement Release No. 1312  
+
+ SECURITIES AND EXCHANGE COMMISSION v. JOHN DAWS, THOMAS BUTLER AND MARK FOLIT, United States District Court for the Northern District of California, Civil Action No. C00-20797 EAI 
+
+     The U.S. Securities and Exchange Commission today filed an action in federal district court in San Francisco against three former officers of Silicon Valley-based Cylink Corporation ("Cylink" or the "Company") for their roles in a financial reporting fraud that overstated Cylink's results by millions of dollars in 1997 and 1998.  In a separate action, the Commission brought charges against Cylink for related violations.  According to the filings, in order to meet Cylink's ambitious revenue goals, former Cylink officers led the Company to recognize revenue on numerous transactions that violated Cylink's own revenue recognition policy, generally accepted accounting principles or both.  Cylink overstated its quarterly revenue by as much as 97.5% during the period of the fraud, according to the filings.  
+
+    Named in the Commission's federal court suit were:  former Chief Financial officer John Daws, age 56, of Orinda, California; former Vice President of Sales Thomas Butler, age 52, of Pebble Beach, California; and former head of North American Sales Mark Folit, age 39, of New York, New York.  The Commission's complaint charges each defendant with securities fraud (Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder); circumvention of Cylink's internal controls and falsification of records (Section 13(b)(5) of the Exchange Act and Rule 13b2-1 thereunder); and aiding and abetting Cylink's violations of the periodic reporting and books and records provisions (Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder) of the federal securities laws.  In addition, the complaint charges Daws with failing to devise and maintain adequate internal accounting controls (Section 13(b)(2)B) of the Exchange Act) and failing to provide material information to Cylink's outside auditors in connection with Cylink's 1997 audit (Exchange Act Rule 13b2-2).  
+
+    In a separate action, the Commission instituted, and simultaneously settled, administrative cease-and-desist proceedings against Cylink.  The Commission's Order Instituting Proceedings ("Order") finds that Cylink materially misstated its financial results for the fourth quarter of fiscal 1997 and the first two quarters of fiscal 1998 and directs Cylink to cease and desist from violations of the periodic reporting, internal controls and books and records provisions.  Cylink consented to issuance of the Order without admitting or denying its findings.  
+
+    The Commission's complaint alleges that during the first two quarters of fiscal 1998, Daws, Butler and Folit led Cylink fraudulently to recognize millions of dollars in revenue.  For example, the complaint alleges that in the second quarter of fiscal 1998, Cylink recognized over $900,000 in revenue on a transaction that was not final because the customer still had up to 90 days to cancel the order.  In another instance alleged in the complaint, Cylink recognized revenue on orders from a distributor even though the defendants had reason to believe the distributor could not pay for the product.  The complaint also alleges that Cylink recognized revenue on software product orders that were contingent on the customers' rights to exchange the software for Cylink hardware products.  Under both the Company's revenue recognition policy and generally accepted accounting principles, it was improper for Cylink to recognize revenue on these transactions.  
+
+    The complaint further alleges that Daws led Cylink fraudulently to recognize revenue on a fourth quarter fiscal 1997 transaction that was not final because Cylink's customer had not provided a letter of credit to support the order.  Despite the absence of a letter of credit, Cylink shipped product for this order to a warehouse, stored it there for several months pending receipt of the letter of credit, and improperly recognized revenue on the transaction during fiscal 1997.  
+
+    After the fraud was uncovered, Cylink issued restated financials that sharply reduced its results for the periods in question.  For the first quarter of fiscal 1998, the Company restated revenue from $15.8 million to $8 million (a 97.5% overstatement) and net income from continuing operations of $1.1 million to a net loss from continuing operations of $3.4 million.  For the second quarter of fiscal 1998, the Company restated revenue from $18 million to $12.4 million (a 45% overstatement) and net income of $1.7 million to a net loss of $1.7 million.  Finally, for the fourth quarter of fiscal 1997, Cylink restated net income from discontinued operations from $4.5 million to $3.2 million (a 41.7% overstatement).  
+
+    The complaint seeks injunctions against each defendant, as well as disgorgement of personal profits received as a result of the fraud, plus monetary penalties.   
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1313.txt b/raw/aaer/2000/AAER-1313.txt
new file mode 100644
index 0000000000000000000000000000000000000000..db46f76923ce0d62e99ba997a31a5b3fbb962cd0
--- /dev/null
+++ b/raw/aaer/2000/AAER-1313.txt
@@ -0,0 +1,1586 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Cylink Corporation 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359016","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Cylink Corporation
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Cylink Corporation
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  43357 / September 27, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.   1313 / September 27, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No. 3-10311 
+
+
+   In the Matter of
+		 CYLINK CORPORATION
+		  Respondent.
+		  
+		 ORDER INSTITUTING PUBLIC CEASE-AND-DESIST PROCEEDING, MAKING FINDINGS AND ISSUING A CEASE-AND-DESIST ORDER 
+	   I. 
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate that a public cease-and-desist proceeding be instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Cylink Corporation ("Cylink" or the "Company" or the "Respondent"). 
+
+   Accordingly, IT IS HEREBY ORDERED that a cease-and-desist proceeding against Cylink be, and hereby is, instituted. 
+
+ II. 
+
+   In anticipation of the institution of this proceeding, Cylink has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings contained herein except that Cylink admits the jurisdiction of the Commission over it and over the subject matter of this proceeding, Cylink consents to the issuance of this Order Instituting Public Cease-and-Desist Proceeding, Making Findings and Issuing a Cease-and-Desist Order Against Cylink Corporation ("Order"). 
+
+ III. 
+
+   On the basis of this Order and the Offer, the Commission makes the following findings: 
+
+ A. Respondent 
+
+ Cylink is a Santa Clara, California corporation that develops, markets and supports computer network security products to allow the secure transmission of information.  Cylink's common stock is registered with the Commission pursuant to Section 12(g) of the Exchange Act and is quoted on the NASDAQ Stock Market. 
+
+ B. Summary  
+
+   This matter involves financial reporting fraud by former executives of Cylink.  Beginning in the fourth quarter of 1997 and continuing through the first two quarters of 1998, as Cylink struggled to meet quarterly revenue targets, former Company executives engaged in wide-ranging revenue irregularities to boost improperly the Company's revenue. 
+
+   Cylink's problems began when the Company's then-Chief Financial Officer ("CFO") fraudulently directed that Cylink recognize revenue on two transactions in the fourth quarter of 1997.  In the first, Cylink recognized $3.7 million in revenue on product it stored in a third-party warehouse relating to an order from a small international distributor.  The transaction was contingent on the distributor's ability to obtain a letter of credit.  When the distributor failed to obtain a letter of credit prior to the end of December 1997, former Cylink executives decided to store the product in the warehouse.  Cylink's former CFO also directed that Cylink falsify its internal records to reflect open credit, rather than letter of credit, as the payment terms.  Finally, the former CFO directed that Cylink recognize revenue on the transaction in fiscal 1997, even though Cylink did not release the product to the distributor but rather maintained control of the product in the warehouse pending receipt of a letter of credit.  In the second transaction, Cylink's former CFO directed that the Company recognize approximately $900,000 in revenue on a transaction in which Cylink granted a distributor the right to exchange a new Cylink software product for other, better-established Cylink hardware products.  The former CFO knew or was reckless in not knowing that recognizing revenue in light of the exchange right was inconsistent with the Company's revenue recognition policy and Generally Accepted Accounting Principles ("GAAP"). 
+
+ The fraud continued during the first two quarters of 1998, as Cylink failed to meet management's revenue goals for the new year.  To mask the revenue shortfalls, former Cylink executives resorted to a variety of fraudulent practices, including recording revenue: on transactions in which customers retained the right to exchange Cylink software products for hardware; on two transactions with a particular distributor even though Cylink had reason to believe that the distributor had no ability to pay for the product; on shipment of product to a third-party warehouse, even though Cylink agreed not to bill its customers until some later date; and on transactions where Cylink did not have the product the customer ordered and instead sent other product, not requested by the customer, to a third-party warehouse.  Cylink's then-CFO played a key role in the fraud during 1998, as did the Company's then-Vice President of Sales and its then-Director of North American Sales. 
+
+   As a result of the fraud, Cylink materially misstated its financial results in filings with the Commission on Form 10-K for the year ended December 31, 1997 and on Forms 10-Q for the quarters ended March 29, 1998 and June 28, 1998.  In February and April of 1999, Cylink restated these financial statements.  For fiscal 1997, the restatement's main impact was on earnings from discontinued operations, which Cylink restated from $4.5 million to $3.2 million (a 41.7% overstatement).  For the quarter ended March 29, 1998, Cylink restated revenue from $15.8 million to $8.0 million (a 97.5% overstatement).  For the same period, Cylink restated net income from continuing operations from $1.1 million to a net loss from continuing operations of $3.4 million.  For the quarter ended June 28, 1998, Cylink restated revenue from $18.0 million to $12.4 million (a 45% overstatement).  For the same period, the Company restated net income from $1.7 million to a net loss of $1.7 million. 
+
+ C. Cylink's Restructuring and Management's Goals for 1998 
+
+   Historically, Cylink had two major businesses:  the encryption division, which sold encryption hardware products; and the wireless division, which sold wireless communications products.  In the latter half of 1997, Cylink management made two decisions that would transform the Company.  First, Cylink decided to sell its wireless division.  Cylink completed this sale in March 1998.  (As discussed below, pressure to meet the revenue goal for this division in the quarter prior to its sale ultimately led Cylink to recognize improperly revenue on an important transaction in the fourth quarter of fiscal 1997.)  Second, the Company shifted the focus of its encryption business from hardware to software products.  As part of this effort, in September 1997 Cylink acquired an Israeli encryption software firm.  At the time, the encryption software firm had one primary product, PrivateWire, a software product for encrypting data over the Internet. 
+
+   Prior to its acquisition by Cylink, the encryption software firm had generated only a few million dollars in PrivateWire sales.  Despite this, Cylink management decided to rely heavily on PrivateWire to meet the Company's growth targets for 1998.  Cylink set a fiscal 1998 revenue target for the Company of approximately $100 million, more than twice Cylink's total revenue for fiscal 1997. 
+
+   Cylink quickly fell behind its revenue goals in the first and second quarters of 1998.  To mask this revenue shortfall, Cylink improperly recorded revenue on several transactions in each quarter.  As discussed in detail below, Cylink's former CFO, Vice President of Sales and Director of North American Sales were responsible for this wrongdoing. 
+
+    D. The Year Ended December 31, 1997:  Cylink Filed Materially False and Misleading Financial Statements on Form 10-K 
+
+ On March 30, 1998, Cylink filed with the Commission its Form 10-K for the year ended December 31, 1997.  In the financial statements included in the Form 10-K, Cylink reported revenue of $49.3 million, income from discontinued operations of $4.5 million and a net loss of $58.8 million.  As a result of the adjustments in the restatement, revenue was reduced to $47.7 million, income from discontinued operations was reduced to $3.2 million and the net loss widened to $61.7 million.  Originally reported revenue and earnings from discontinued operations were overstated 3.4% and 41.7%, respectively; the originally reported net loss was understated by 4.8%. 
+
+   Cylink's revenue goal for the fourth quarter of 1997 was $25 million, consisting of $10 million from its wireless division and $15 million from its encryption division.  As originally reported, Cylink met its revenue goal, but only barely, and only because Cylink's former CFO directed that the Company improperly recognize revenue on two transactions:  a $3.7 million order for the wireless division and a $900,000 order for Cylink's new software product for the encryption division. 
+
+   1. The Fourth Quarter Wireless Bill and Hold Transaction 
+
+   In November 1997, Cylink's wireless division received a $3.7 million purchase order from a small distributor based in the Middle East.  The distributor's prior orders had been much smaller, in the range of $50,000 to $100,000.  Moreover, the distributor did not have a written contract to resell the goods.  As a result, Cylink's credit department approved the order contingent on the delivery by the distributor of a letter of credit in favor of Cylink. 
+
+   By late December, the distributor had not provided a letter of credit.  Nevertheless, late that month Cylink shipped product for the order to a third-party warehouse.  Cylink decided to ship the product to the warehouse on its own, not in response to any request by the distributor.  Moreover, at the time Cylink shipped the product to the warehouse, there was no fixed schedule for the delivery of the product from the warehouse to the distributor. 
+
+ Also in December, Cylink's former CFO directed that the terms of the distributor's order be changed on Cylink's internal order processing system from "letter of credit" to "120 days open credit."  With the product shipped to a warehouse and Cylink's internal records changed to reflect open credit terms, in fiscal 1997 Cylink recognized some $3.7 million in revenue on the order. 
+
+   Although Cylink shipped the product to the warehouse in December 1997, Cylink did not relinquish control of the goods.  Instead, the product remained in the warehouse under Cylink's control through the end of March 1998, when Cylink sold its wireless division to another company. 
+
+   Revenue recognition during fiscal 1997 was improper because this transaction failed to comply with the requirements for bill-and-hold transactions, in which a vendor ships goods to a third-party location (such as a warehouse) on behalf of a customer, rather than to the customer itself.  In order to recognize revenue upon shipment to the third-party location, a vendor must analyze a number of factors, including whether:  the buyer, rather than the seller, has requested the bill and hold arrangement; the buyer has a substantial business purpose for the request; and there is a fixed schedule for delivery of the goods.  In addition to considering these and other factors, the vendor must also consider the issue of control.  If the vendor retains control of the product, that is an indication that revenue realization has not occurred.  Financial Accounting Standards Board ("FASB") Statement of Concepts No. 5, Para. 83.  See also Accounting and Auditing Enforcement Release No. 108 (Aug. 5, 1986).  All of the factors stated above weighed against recognizing revenue:  the distributor did not request shipment to the warehouse; there was no business purpose from the buyer's perspective for the warehouse arrangement; there was no fixed schedule for delivery to the distributor, and Cylink retained control of the product in the warehouse pending receipt of a letter of credit from the distributor.  Accordingly, revenue recognition was improper on a bill-and-hold basis. 
+
+   More fundamentally, revenue recognition was improper because a key term of the transaction had not been fulfilled-the distributor had failed to provide a letter of credit.  Although Cylink's former CFO directed that the Company change the credit terms on the order from letter of credit to 120 days open credit, the CFO did not in fact intend to release the product to the distributor until the distributor had supplied a letter of credit.  In addition to the reasons stated above, because a key term of the transaction remained unfulfilled, revenue recognition was improper in fiscal 1997. 
+
+ 2. The Fourth Quarter Software-for-Hardware Exchange Transaction 
+
+ Cylink restated a transaction from the fourth quarter of 1997 that involved the shipment of approximately $900,000 of PrivateWire, Cylink's new encryption software product, to a Japanese distributor.  Cylink had acquired PrivateWire just a few months earlier when it bought the encryption software firm.  The sale to the Japanese distributor was Cylink's first significant PrivateWire deal. 
+
+ To obtain this order, Cylink granted the distributor the right to exchange PrivateWire for any of Cylink's encryption hardware products.  The exchange provision was contrary to Cylink's revenue recognition policy, which stated in part that "[r]evenue from sales to distributors is recognized upon shipment; no right of return, stock rotation or price protection is given."  
+
+ The exchange provision also made it improper to recognize revenue under GAAP.  In order to recognize revenue where a right of return is granted, GAAP requires that the seller be able to make a reasonable estimate of the amount of future returns and to establish a reserve for any costs or losses associated with the expected returns.  FASB Current Standards R75.107, 108.  In this case, because PrivateWire was a new product, Cylink had no basis for estimating the amount of future returns or the costs or losses associated with such returns.  Nevertheless, Cylink improperly recognized $900,000 in revenue on this transaction in fiscal 1997. 
+
+ E. The Quarter Ended March 29, 1998:  Cylink Filed Materially False and Misleading Financial Statements on Form 10-Q      
+
+ On May 13, 1998, Cylink filed with the Commission its Form 10-Q for the quarter ended March 29, 1998.  In the financial statements included in the filing, the Company reported revenue of $15.8 million for the period.  As a result of the adjustments in the restatement, revenue was later reduced to $8 million.  Thus, originally reported revenue was overstated by 97.5%.  The Company also originally reported net income from continuing operations of $1.1 million, which was later restated to a net loss from continuing operations of $3.4 million. 
+
+ 1. Cylink's Revenue Goal for Q1 1998      
+
+ Cylink's former management undertook to radically reshape the Company in 1998.  In March 1998, Cylink completed the sale of its wireless division.  At the same time, the Company tried to shift the focus of its remaining core encryption business from its traditional hardware products to software.  In so doing, Cylink counted heavily on its ability to market PrivateWire, the encryption software product it acquired in late 1997. 
+
+   In the midst of these changes, Cylink's former management originally set the Company's 1998 revenue goal at $100 million, compared to fiscal 1997 revenue of $49.3 million (prior to the restatement).  As part of this plan, the Company's initial goal for first quarter encryption revenue was $17.5 million. 
+
+   First quarter revenue quickly fell behind plan, and Cylink later reduced its Q1 encryption revenue target slightly to $16 million.  Nevertheless, Cylink entered the last week of the quarter with a significant revenue shortfall.  According to an internal report dated March 25, 1998, Cylink needed to record another $5.483 million in encryption sales in the following four days to meet its revenue target. 
+
+   2. Faced with a Significant Q1 1998 Shortfall, Former Cylink Executives Schemed Fraudulently to Boost Cylink's Revenue    
+
+ In the last week of the quarter, Cylink closed several transactions that should not have been recorded as revenue, including two that accounted for $2.3 million in revenue (a 28.8% overstatement).  In the first of these, Cylink improperly recognized revenue on the shipment of encryption hardware product to a warehouse on behalf of a domestic end-user.  In the second, Cylink improperly recorded revenue on shipments of PrivateWire software to a warehouse on behalf of a distributor, even though the distributor had no ability, in the absence of a resale, to pay for the product.  To induce the distributor to place the order, Cylink granted the distributor the right to exchange the software for Cylink hardware products. 
+
+ a. The First Quarter Domestic End-User Transaction        
+
+ In late March 1998, Cylink received a $1.3 million purchase encryption hardware order from a domestic end-user.  That month, Cylink shipped product for the order to a third-party warehouse and recognized $1.3 million in first quarter revenue.  It was improper for Cylink to record this transaction as revenue during Q1 1998 because:  Cylink failed to comply with the requirements for bill-and-hold revenue recognition; and Cylink was unable during Q1 to manufacture all the product needed for the order and, instead, partially filled the order with product that the customer did not request. 
+
+   First, although the customer issued a purchase order in March 1998, the customer also instructed Cylink to delay billing until Cylink shipped the product from the warehouse to an actual customer location.  Cylink's former head of North American Sales communicated this fact to Cylink's CFO in late March 1998.  The CFO did not object to the delayed billing arrangement but simply instructed that Cylink falsely document the transaction in the Company's internal records as "50% net 30, 50% net 180", meaning half the purchase amount due within 30 days and half due within 180 days after shipment to the warehouse.  Cylink's former Vice President of Sales was also aware of the true terms of the delayed billing arrangement. 
+
+ Second, Cylink was unable to build all the product for this order prior to the end of the first quarter.  Instead, Cylink's former Vice President of Sales and its former head of North American Sales arranged to partially fill the order with approximately $365,000 in other, excess product that the customer had not requested.  Cylink sent the unordered product (along with that portion of the order that it was then able to fill) to the warehouse at the end of March.  In April, after Cylink was able to manufacture the correct product, the Company used it to replace the unordered product that remained in the warehouse. 
+
+   Revenue recognition was improper.  The transaction failed to qualify for revenue recognition on a bill-and-hold basis because the customer had no obligation to pay on shipment of the product to the warehouse.  Instead, Cylink should have recognized revenue when the product was shipped from the warehouse to an actual customer site.  In addition, for the approximately $365,000 in substituted product, revenue recognition was improper because the customer never agreed to pay for that product. 
+
+     b. The First Quarter Distributor Transaction      
+
+   In March 1998, Cylink recognized $1 million in revenue on the sale of PrivateWire software to a distributor that was attempting to sell encryption products to the government of Argentina.  The transaction included the following terms:  shipment to a bonded warehouse; 180-day payment terms; and the right to exchange the software for Cylink hardware products. 
+
+ Revenue recognition was improper because the exchange provision was contrary to Cylink's revenue recognition policy.  The exchange provision also made it improper to recognize revenue under GAAP.  Cylink's former CFO knew of the exchange provision but nonetheless directed that the Company recognize revenue on the transaction. 
+
+   Revenue recognition was also improper for a more fundamental reason:  Cylink had no reason to believe that the distributor could pay for the product.  Cylink had no basis on which to evaluate this distributor's creditworthiness because, despite requests from Cylink sales personnel, the distributor had refused to provide any information about its finances.  In addition, the distributor had thus far failed to pay for its only prior order from Cylink, a December 1997 order for $450,000 in encryption hardware; indeed in early March 1998 the distributor specifically refused to accept delivery of this product because it could not pay for it.  Under these circumstances, there was no reasonable basis for Cylink to believe that the distributor could pay for the product. 
+
+ F. The Quarter Ended June 28, 1998:  Cylink Filed Materially False and Misleading Financial Statements on Form 10-Q      
+
+   On August 12, 1998, Cylink filed with the Commission its Form 10-Q for the period ended June 28, 1998.  In the financial statements included in Cylink's Form 10-Q, the Company reported revenue and net income for the period of $18 million and $1.7 million, respectively.  As a result of the adjustments in the restatement, revenue was later reduced to $12.4 million (an overstatement of 45%) and the net income was restated to a net loss of $1.7 million. 
+
+   Cylink's revenue target for the second quarter was $18 million.  Near the end of June, with only five business days remaining in the quarter, Cylink needed to close and ship nearly $6.8 million to meet the revenue target.  Cylink met its target but only by recording revenue on many problematic orders it received during the last week of the quarter.  Cylink invoiced at least $6.6 million in revenue during the last week of June, eventually restating $6.1 million   of that amount.  Among the transactions restated were the following three, which totaled $3.3 million in revenue (a 26.6% overstatement). 
+
+   1. The Second Quarter Distributor Transaction 
+
+   By the second quarter of 1998, Cylink's Argentina distributor had two outstanding purchase orders (from December 1997 and March 1998) but had not taken delivery of any product and had not paid for the orders.  In each order, Cylink had granted the distributor the right to exchange product because the distributor had not determined what types or quantities of product it might be able to sell in Argentina.  In fact, Cylink's former Vice President of Sales and former head of North American Sales knew that the distributor did not yet have a buyer for any of the product from either of its two earlier orders.  Nonetheless, in late June 1998, the former head of North American Sales signed a letter offering this distributor 180-day payment terms, storage at a bonded warehouse for up to one year and the right to exchange software for hardware products.  The distributor accepted and placed another $1 million purchase order for PrivateWire software and Cylink recognized the entire order as revenue in the second quarter of fiscal 1998.  In the end, the distributor never took any product from this or any of its prior orders. 
+
+   The revenue recognition issues are the same as those for Cylink's first quarter deal with this distributor.  It was improper for Cylink to recognize revenue on this transaction because the software-for-hardware exchange provision was contrary to the Company's revenue recognition policy.  In addition, the exchange provision made it improper to recognize revenue under GAAP.  Finally, revenue recognition was also improper because Cylink had no reasonable basis to believe that the distributor, in the absence of an order from an end-user, could pay for the product. 
+
+   2. The Second Quarter End-User Transaction 
+
+   At the end of the second quarter, Cylink's former CFO and former head of North American Sales approved a $1.3 million order from an end-user customer for encryption hardware.  In accepting the order, Cylink agreed to ship the product to a bonded warehouse and store it there for up to one and one-half years before deploying it to various customer sites.  In addition, Cylink agreed to delay billing until Cylink had deployed the product from the warehouse to the customer sites.  Both the former CFO and the former head of North American Sales knew of and approved the terms of the transaction.  Cylink recognized $1.3 million in revenue on this transaction in the second quarter of fiscal 1998. 
+
+ Revenue recognition in the second quarter was improper because the transaction failed to comply with the requirements for bill-and-hold revenue recognition.  The customer was not obligated to pay for the product upon shipment to the warehouse.  Rather, the customer was only to be billed, and was only obligated to pay, when the product was shipped from the warehouse to the various customer sites.  In addition, there was no fixed schedule for shipment of the product from the warehouse to the customer sites.  
+
+   3. The Second Quarter Reseller Transaction 
+
+   As Cylink neared the end of the second quarter, the Company was counting on an order from a reseller that had been working for some time to resell Cylink product to a particular end-user.  The reseller was reluctant to place an order with Cylink because it still did not have a contract with its end-user.  In late June, to induce the reseller to place an order, Cylink's former Vice President of Sales signed a letter that gave the reseller the right to cancel its order within 90 days.  On this basis, the reseller issued Cylink a purchase order for $903,000 and Cylink recognized this entire amount as second quarter revenue. 
+
+   Because it was subject to the 90-day cancellation clause, it was improper for Cylink to recognize revenue on this order in the June 1998 quarter. 
+
+ G. Cylink's Lack of Internal Controls 
+
+   The fraud at Cylink was made possible, in part, by the Company's poor internal controls.  Aside from a general statement in its 1997 Form 10-K concerning the Company's basis for recognizing revenue, Cylink had no written policies governing revenue recognition.  For example, the Company had no written policy regarding which positions in the finance department were responsible for reviewing revenue recognition transactions.  Nor did the Company have a written policy regarding what documentation was necessary to determine whether a transaction was eligible for revenue recognition.  Cylink also had no written requirement that senior finance department officials sign off on any unusual sales terms, such as large discounts or extended payment terms. 
+
+   Moreover, Cylink failed to provide any training to inform employees about the Company's revenue recognition policy or about terms that might make revenue recognition improper.  For example, Cylink's order administration department was responsible for tracking orders from intake to invoice through shipping and, in theory, was supposed to have all the documentation necessary to determine whether a transaction was eligible for revenue recognition.  However, the order administration staff received no training or guidance as to how to spot problematic sales terms. 
+
+ H. Legal Conclusions  
+
+   As described in Parts III(B) through (G) above, from the fourth quarter of 1997 through the first two quarters of 1998, former Cylink executives engaged in repeated fraudulent conduct to improperly boost the Company's financial results.  As a result of the fraud, Cylink's financial statements for each of these periods (which were filed with the Commission and disseminated to investors) were materially false and misleading.  In addition, the Company failed to maintain books, records and accounts that, in reasonable detail, accurately and fairly reflected its transactions and dispositions of assets and failed to maintain a system of internal accounting controls sufficient to permit the preparation of financial statements in conformity with GAAP. 
+
+   Based on the foregoing, the Commission concludes that the Company violated Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-13 and 13b2-1. 
+
+ IV. 
+
+   In determining to accept the Offer, the Commission considered remedial acts promptly undertaken by Respondent and cooperation afforded to the Commission staff. 
+
+ V. 
+
+   Based on the foregoing, the Commission deems it appropriate to accept the Offer submitted by Cylink.  Accordingly, IT IS HEREBY ORDERED pursuant to Section 21C of the Exchange Act that: 
+
+   Cylink cease and desist from committing or causing any violations or any future violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-13 and 13b2-1. 
+
+   By the Commission. 
+
+             Jonathan G. Katz
+
+             Secretary 
+
+ 		
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1314.txt b/raw/aaer/2000/AAER-1314.txt
new file mode 100644
index 0000000000000000000000000000000000000000..3d84a824f64b81d875c5a391773022237b85da28
--- /dev/null
+++ b/raw/aaer/2000/AAER-1314.txt
@@ -0,0 +1,1505 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Premier Laser Systems Inc. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359011","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Premier Laser Systems Inc.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Premier Laser Systems Inc.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES ACT OF 1933
+ Release No.    7902 / September 27, 2000 
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  43358 / September 27, 2000
+
+   ACCOUNTING AND AUDITING ENFORCEMENT 
+ Release No.  1314 / September 27, 2000 
+
+ ADMINISTRATIVE PROCEEDING 
+ File No. 3-10312 
+ 
+    In the Matter of  Premier Laser Systems, Inc. Respondent.  
+	 ORDER INSTITUTING  
+CEASE-AND-DESIST PROCEEDING, 
+MAKING FINDINGS AND IMPOSING 
+CEASE-AND-DESIST ORDER 
+   I. 
+
+   The Securities and Exchange Commission (the "Commission") deems it appropriate to institute a cease-and-desist proceeding pursuant to Section 8A of the Securities Act of 1933 ("Securities Act") and Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Premier Laser Systems, Inc. ("Premier"). 
+
+ II. 
+
+   In anticipation of the institution of the cease-and-desist proceeding, Premier has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceedings brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the Commission's findings, except the Commission's jurisdiction over it and over the subject matter of this proceeding, which are admitted, Premier consents to the entry of this Order Instituting Cease-And-Desist Proceeding, Making Findings And Imposing Cease-And-Desist Order ("Order").
+
+     ACCORDINGLY, IT IS ORDERED  that a cease-and-desist proceeding pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act be, and hereby is, instituted. 
+
+               III. 
+
+   On the basis of this Order and the Offer submitted by Premier, the Commission finds that: 
+
+    A. RESPONDENT 
+
+   Premier is a California corporation with executive offices in Irvine, California.  During the relevant period, Premier developed, manufactured and marketed several lines of medical lasers, fiber optic devices and associated products for dental, ophthalmic and surgical applications.  On March 11, 2000, Premier filed for Chapter 11 bankruptcy protection.  Premier's common stock is registered with the Commission pursuant to Section 12(g) of the Exchange Act and traded on NASDAQ until April 3, 2000, when it was delisted. 
+
+   B. FACTS 
+
+     1. Fictitious Customer Order Form Prepared 
+
+ On December 23, 1997, Premier signed a non-binding letter of intent with Henry Schein, Inc. ("Schein"), pursuant to which Schein agreed to market Premier's dental lasers.  The next day, Premier's now-deceased Executive Vice President and acting Vice President of Sales and Marketing (hereinafter referred to as the "Executive Vice President") solicited a laser purchase from Schein.  Schein declined the invitation to place an order, however.  Nevertheless, sometime during the last week of December 1997, Premier's Executive Vice President directed his staff to prepare a Customer Order Form reflecting Schein's proposed purchase of 100 lasers from Premier.  Certain portions of the form inexplicably remained blank, while others apparently were filled in at a later date.  Specifically, the space designated for the "Purchaser's Signature" was not signed.  Moreover, the Customer Order Form bore an "Order Date" of "12/24/98" rather than 12/24/97.  Finally, the "Processor's Signature" block (which would have been completed when the sale was recorded on Premier's books) was dated "9 Jan 98." 
+
+     2. Lasers Moved to a Warehouse 
+
+ After Christmas 1997, Premier's Executive Vice President issued orders to ship the lasers that had been designated for Schein to a warehouse.  Pursuant to these instructions, Premier arranged for the lasers to be stored at its domestic freight forwarder (hereinafter referred to as the "Freight Forwarder").  On December 29, 1997, the Freight Forwarder moved a truckload of inventory, consisting of 50 boxes of lasers and carts, to its warehouse.  The next day, the Freight Forwarder picked up an additional 42 boxes of  "Schein" inventory from Premier.  Yet, Premier was unable to ship all the lasers designated for Schein to the Freight Forwarder before the year-end. Although Premier requested a third shipment, consisting of 56 boxes of cargo, on December 31, 1997, the Freight Forwarder's records indicate that the order was not picked up until January 9, 1998.  Premier also shipped another 39 boxes of inventory designated for Schein to the Freight Forwarder on March 11, 1998.  In total, Premier stored 187 boxes of cargo at the Freight Forwarder's warehouse in an attempt to fill Schein's purported order.  Although the Freight Forwarder was told that the lasers would only be stored at its facility for a few days, the inventory was never forwarded to Schein, no invoice was mailed, and ultimately the lasers were returned to Premier in August 1998. 
+
+     3. Revenue Improperly Recognized in the Third Quarter  
+
+ In January 1998, Premier's Chief Financial Officer (hereinafter referred to as the "CFO") received a Customer Order Form ostensibly documenting Schein's $2.4 million purchase.      Even though the order was the largest Premier had ever received and resulted in the company's first-ever quarterly profit, the CFO did not look at the Customer Order Form closely.  Consequently, he failed to notice that the Customer Order Form was not signed by the purported customer, was dated "12/24/98" (rather than 12/24/97), and had not been recorded on Premier's books until January 9, 1998. 
+
+  Premier's CFO failed yet again to fully investigate, approximately one week before Premier filed its fiscal 1998 third quarter Form 10-Q for the period ended December 31, 1997 ("3Q98"), when he questioned the Executive Vice President about the documentation supporting Schein's purported order.  In response, the Executive Vice President gave Premier's CFO the letter of intent, as well as some notes.  After looking at the letter of intent, the CFO concluded that Schein had agreed to purchase the lasers.  He also recklessly accepted at face value the Executive Vice President's assurances that installation of the lasers was proceeding and payment would be received the following month.  Thus, the CFO improperly booked the $2.4 million laser sale to Schein.  As a result, Premier overstated quarterly revenue in its 3Q98 Form 10-Q by more than a third.  Premier also filed four registration statements which incorporate the false and misleading Form 10-Q by reference. 
+
+     4. Internal Control Deficiencies 
+
+   Premier's false Form 10-Q filing was caused in part by the company's failure to maintain adequate internal controls.  For example, Premier failed to adhere to written guidelines that required distributors to provide signed purchase orders documenting laser sales.  Nor did it observe less stringent procedures required of non-institutional customers, which called for purchasers to sign the company's Customer Order Form.  Indeed, Premier's Customer Order Forms were signed only 60-70 percent of the time.  Premier's accounting department instead relied upon the Sales and Marketing Department to make sure all sales were properly documented.  Consequently, Premier's Executive Vice President was able to control the entire sales process.  Moreover, after sales were booked, he was responsible for collecting virtually all of Premier's outstanding accounts receivable. 
+
+   The accounting staff also was inadequately supervised.  Premier's CFO delegated day-to-day management of the accounting department to a staff accountant.  In addition, Premier's written procedures manual was not used.  Finally, Premier lacked formal procedures governing the collection of accounts receivable.   
+
+   C. VIOLATIONS 
+
+     1. Antifraud Violations 
+
+ Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder make it unlawful for any person, directly or indirectly, in the offer or sale or in connection with the purchase or sale of securities, by use of the means, instruments or instrumentalities of transportation or communication in interstate commerce, or by use of the mails or any facility of any national securities exchange, to employ devices, schemes or artifices to defraud, make untrue statements of material fact or omit to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading, obtain money or property by means of such misstatements or omissions, or engage in transactions, practices, or courses of business which operate or would operate as a fraud or deceit.  Premier violated the foregoing antifraud provisions by improperly reporting approximately $2.4 million in revenue from the purported sale of lasers to Schein, as more particularly described in Sections III.B.1. through III.B.3., above. 
+
+     2. Reporting Violations 
+
+ Section 13(a) of the Exchange Act and Rule 13a-13 thereunder require issuers with securities registered pursuant to Section 12 of the Exchange Act to file quarterly reports with the Commission on Forms 10-Q.  These provisions require that all such filings be accurate.  Rule 12b-20 under the Exchange Act similarly requires that these reports include such further information as may be necessary to make the required statements, in light of the circumstances under which they are made, not misleading.  Premier violated Section 13(a) of the Exchange Act and Rules 12b-20 and 13a-13 thereunder by improperly reporting approximately $2.4 million in revenue from the purported sale of lasers to Schein, as more particularly described in Sections III.B.1. through III.B.3., above. 
+
+ 3. Books and Records Violations 
+
+ Section 13(b)(2)(A) of the Exchange Act requires every issuer that has securities registered pursuant to Section 12 of the Exchange Act to "make and keep books, records, accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the issuer."  Rule 13b2-1 thereunder prohibits any person from, directly or indirectly, falsifying or causing to be falsified, any book, record or account subject to Section 13(b)(2)(A).  Premier violated Section 13(b)(2)(A) of the Exchange Act and Rule 13b2-1 thereunder because its Executive Vice President falsified a Customer Order Form and its CFO improperly booked an approximately $2.4 million sale of lasers to Schein, as more particularly described in Sections III.B.1. through III.B.3., above. 
+
+ 4. Internal Control Violations 
+
+ Section 13(b)(2)(B) of the Exchange Act requires issuers to devise and maintain a system of internal accounting controls sufficient to reasonably assure, among other things, that transactions are recorded as necessary to permit preparation of financial statements in conformity with Generally Accepted Accounting Principles.  Premier violated Section 13(b)(2)(B) of the Exchange Act because it lacked the required internal accounting controls necessary to, among other things, record accurately the purported sale of lasers to Schein, as more particularly described in Section III.B.4., above. 
+
+ IV. 
+
+   In view of the foregoing, the Commission deems it appropriate to accept the Offer submitted by Premier. 
+
+    ACCORDINGLY, IT IS HEREBY ORDERED  that Premier cease and desist from committing or causing any violation, and any future violation, of Section 17(a) of the Securities Act, Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20, 13a-13 and 13b2-1 thereunder. 
+
+   By the Commission. 
+ Jonathan G. Katz 
+ Secretary 
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1315.txt b/raw/aaer/2000/AAER-1315.txt
new file mode 100644
index 0000000000000000000000000000000000000000..959c80e9a7203269076d16e310c60d13c2dff7d2
--- /dev/null
+++ b/raw/aaer/2000/AAER-1315.txt
@@ -0,0 +1,1442 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | YourBankOnline.com, Pakie Plastino and William L. Butcher 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359006","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              YourBankOnline.com, Pakie Plastino and William L. Butcher
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        YourBankOnline.com, Pakie Plastino and William L. Butcher
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.   43359 / September 27, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No      1315 / September 27, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No. 3-10313 
+
+ SEC CHARGES SEATTLE SOFTWARE FIRM WITH FRAUD, FILES RULE 102(e) PROCEEDINGS AGAINST AUDITOR. 
+
+ The Commission announced today that it has instituted cease-and-desist proceedings against YourBankOnline.com, of Mountlake Terrace, Washington ("YourBankOnline" or the "Company"), and its president, Pakie Plastino.  The Commission also instituted administrative proceedings under Rule 102(e) against YourBankOnline's outside auditor, William L. Butcher, of Everett, Washington. 
+
+ The Division of Enforcement alleges that in a March 1999 press release, YourBankOnline - then known as Consolidated Data, Inc. - claimed to have purchased the rights to an Internet banking software program for $10 million in cash and stock.  This press release, which was followed by additional Company statements touting the software program, caused YourBankOnline's stock price to jump from less than $1 to $32 over a two-week period. 
+
+ The Division of Enforcement alleges that the March 1999 press release greatly overstated the value of the software and misrepresented YourBankOnline's financial strength.  YourBankOnline, which had less than $200 in cash at the time, had no ability to make any substantial cash payments to acquire the software.  In addition, the Company stock that YourBankOnline exchanged for the software was worth far less than $10 million.  Moreover, the $10 million value was unreasonable in light of the fact that the same software had been purchased for approximately $400,000 in a separate transaction just a few months earlier. 
+
+ The Division of Enforcement alleges that YourBankOnline also fraudulently inflated the value of the software in financial statements filed with the Commission in August 1999.  Further, according to the Order, Butcher, the Company' outside auditor, engaged in improper professional conduct in his audit of those financial statements.  Butcher failed to take reasonable steps to determine the true value of the software, despite the fact that it was essentially the Company's only asset.  Butcher failed to follow applicable auditing standards and falsely represented that the Company's financial statements complied with generally accepted accounting principles. 
+
+ A hearing will be scheduled before an administrative law judge to determine whether the allegations in the Order are true and, if so, what remedial actions or sanctions are appropriate. 
+
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1316.txt b/raw/aaer/2000/AAER-1316.txt
new file mode 100644
index 0000000000000000000000000000000000000000..187e29f9c7bb4986edbd950676bfcfcf6d24b2df
--- /dev/null
+++ b/raw/aaer/2000/AAER-1316.txt
@@ -0,0 +1,1448 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Countryland Wellness Resorts, Inc. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/359001","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Countryland Wellness Resorts, Inc.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Countryland Wellness Resorts, Inc.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  43360 / September 27, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.   1316 / September 27, 2000
+
+  ADMINISTRATIVE PROCEEDING
+ File No.  3-10314               
+
+ COMMISSION INSTITUTES ADMINISTRATIVE PROCEEDING AGAINST COUNTRYLAND WELLNESS RESORTS, INC. SEEKING TO REVOKE REGISTRATION OF ITS COMMON STOCK
+
+  The Securities and Exchange Commission ("Commission") announced today the institution of an administrative proceeding against Countryland Wellness Resorts, Inc. ("Countryland") seeking to revoke registration of Countryland's common stock.  The Order Instituting Proceeding alleges that Countryland failed to comply with the federal securities laws by falsely reporting assets in periodic filings and a registration statement made with the Commission from February 1997 to the present. 
+
+    Countryland Wellness Resorts, Inc., is a Delaware corporation. Countryland maintains its offices in Las Vegas, Nevada.  Countryland claims to be in the mining and electrical contracting business and purports to plan to operate a longevity center at a wellness resort and casino in Las Vegas.  Countryland stock is not listed on any national securities exchange. 
+
+    The Division of Enforcement alleges that Countryland lied to investors about the following assets reported in various annual reports (Form 10-K) and quarterly reports (Form 10-Q) and in a registration statement:
+
+        gold stored in a warehouse reported in ranges from $19.5 million to over $27.3 million in annual and quarterly reports filed in 1996 through 1999; the purported gold was in fact dirt.  This material, which contained only 0.151 ounces of gold per ton, represented as much as 89% of Countryland's total assets in 1996 and 1997. 
+
+       proven mining reserves reported in ranges from $1.2 billion to $2.1 billion; in fact, Countryland lacked sufficient information to evidence the proven reserves.  Countryland also needed extensive work performed to determine the amount and value of recoverable minerals.  Despite this lack of information, Countryland reported the proved mining reserves in 1997 through 2000 with this asset representing as much as 98% of the total reported assets in 1997. 
+
+       Indonesian bank guarantees reported in ranges from $400 million to $1.1 billion; in fact, the bank guarantees did not exist although they represented between 37-45% of Countryland's reported assets in 1998 and 1999.
+
+   A public hearing will be held to determine whether the allegations included in the Order Instituting Proceeding are true, to offer Countryland an opportunity to establish any defenses to the allegations, and to determine what sanctions, if any, are appropriate.
+
+  In a related but separate enforcement action, on September 27, 2000, the Commission filed a civil complaint against Countryland and others in federal district court in Nevada.  Simultaneous with the filing of the Commission's complaint, Countryland consented to the issuance of a permanent injunction, without admitting or denying the allegations contained in the Commission's complaint.  See Litigation Release No. 16732 (Sept. 27, 2000).
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1317.txt b/raw/aaer/2000/AAER-1317.txt
new file mode 100644
index 0000000000000000000000000000000000000000..8ac06a959c5d4101857585ceebc05e7bf75ab448
--- /dev/null
+++ b/raw/aaer/2000/AAER-1317.txt
@@ -0,0 +1,1511 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Bonnie K. Metz 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358996","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Bonnie K. Metz
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Bonnie K. Metz
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.   43361 / September 27, 2000    
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.     1317 / September 27, 2000  
+
+  ADMINISTRATIVE PROCEEDING
+ File No. 3-10316 
+
+   In the Matter of
+		 BONNIE K. METZ,
+		  Respondent.
+		  
+		 ORDER INSTITUTING A PUBLIC CEASE-AND-DESIST PROCEEDING PURSUANT TO SECTION 21C OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS, AND IMPOSING A CEASE-AND-DESIST ORDER 
+	    I.  
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate that a public cease-and-desist proceeding be and hereby is instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Respondent Bonnie K. Metz ("Metz").
+
+   II.   
+
+   In anticipation of the institution of this proceeding, Metz has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceedings brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings contained herein, except that Metz admits the jurisdiction of the Commission over her and over the subject matter of this proceeding, Metz consents to the entry of this Order Instituting a Public Cease-and-Desist Proceeding Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order ("Order") as set forth below. 
+
+    Accordingly,  IT IS HEREBY ORDERED  that a proceeding pursuant to Section 21C of the Exchange Act be, and hereby is, instituted.
+
+   III.   
+
+   On the basis of this Order and the Offer of Settlement submitted by Metz, the Commission finds that:  1     A. RESPONDENT  
+
+   Bonnie K. Metz ("Metz"), age 50, a resident of Balboa, California, was the Vice-President-Managing Director of the Hong Kong office of Craig Consumer Electronics, Inc. ("Craig") from 1995 to September of 1997, Craig's director of international trade from 1994 to 1995, and its operations director from 1989 to 1993. 
+
+   B. RELATED PARTY  
+
+   Craig Consumer Electronics, Inc. was incorporated in Delaware in 1989.  Its principal place of business before it ceased operations was in Cerritos, California.  Craig's common stock is registered with the Commission pursuant to Section 12(g) of the Exchange Act and during the relevant time period was traded on Nasdaq.  On August 1, 1997, Craig filed a petition for relief under Chapter 11 of the Bankruptcy Code.
+
+   C.   CRAIG'S LIQUIDITY PROBLEMS  
+
+   Craig marketed consumer electronic products under its trademark, "Craig."  Its business was highly seasonal with a majority of its sales occurring in the third and fourth quarters.  2     As such, it required substantial working capital to acquire inventory in advance of its sales.  To meet its cash requirements, Craig relied principally on a line of credit from a bank; the line of credit was secured by accounts receivable and inventory. 
+
+   The credit agreement contained limitations on the credit that would be provided and secured by inventory.  For example, the credit agreement permitted Craig to borrow against only a percentage of its new goods, a lesser percentage against its refurbished goods, and not at all against its defective goods.   
+
+ By at least shortly before Craig's initial public offering in May 1996, the company realized that it could not obtain sufficient credit to maintain its business if it accurately reported certain sales and inventory levels to its bank.  In part, the items falsely reported to the bank were also falsely recorded in Craig's books and records.   
+
+    1. Inventory Transfers and the South American Sale  
+
+   Under Craig's credit agreement with its bank, it could not borrow against accounts receivable resulting from foreign sales.  Moreover, Craig's internal accounting system would not permit a customer to be invoiced for sales of defective product.  Craig circumvented both limitations in a sale of nearly $1.03 million worth of defective product to a customer in South America.  First, Craig billed the shipment to an entity in Brooklyn, New York.  Then Craig, with Metz's knowledge, improperly transferred the known defective inventory within its accounting system to a "new" inventory category.  Metz, knowing that the product was defective and that Craig's accounting system could not bill for sales of defective goods, then created schedules that showed the inventory being moved from a defective to a "new" category.  To these schedules, Metz attached copies of invoices showing that the inventory was billed.  She also authorized the return of the defective goods to the United States. 
+
+    2.   Goods on the Water  
+
+   "Goods on the water" is inventory purchased by Craig that is in transit from Craig's vendors in Asia.  Craig, with Metz's knowledge, reported goods on the water as collateral to its bank that either did not exist or to which it did not have legal title.  Metz directed a Craig   employee to inflate the goods on the water inventory reported to the bank by adding non-existent shipments.  In addition, Metz created false bills of lading to support further overstatements of inventory reported to the bank.  Metz scanned a bill of lading form into her computer and then changed the consignee on the fabricated bill of lading from Craig's supplier to Craig.  By changing the consignee to Craig, Metz made it appear that Craig owned the goods, when actually the supplier owned the goods.  As Metz created the false bills of lading, she removed the originals from the files, hid them, and replaced them with the ones she had fabricated.  Metz replaced the original bills of lading with the fabricated ones so that Craig would have supporting documentation to provide to its bank if questioned.   
+
+  D. LEGAL DISCUSSION  
+
+    1.   Record-Keeping Provisions: Section 13(b)(2)(A) of the Exchange Act and Rule 13b2-1 Thereunder   
+
+   Section 13(b)(2)(A) of the Exchange Act requires every issuer that has securities registered pursuant to Section 12 of the Exchange Act, such as Craig, to "make and keep books, records, and accounts, which in reasonable detail, accurately and fairly reflect the transactions . . . of the issuer."  No showing of scienter is required.  SEC v. World Wide Coin Inv. Ltd., 567 F. Supp. 724, 749, 751 (N.D. Ga. 1983).  Rule 13b2-1 under Section 13(b)(2)(A) of the Exchange Act provides that "no person shall, directly or indirectly, falsify or cause to be falsified, any book, record or account subject to Section 13(b)(2)(A)."  Craig violated Section 13(b)(2)(A) of the Exchange Act by maintaining books and records containing false accounting entries and documents. 
+
+   Metz violated Rule 13b2-1 and caused Craig's violations of Section 13(b)(2)(A) by falsifying or causing others to falsify Craig's corporate documents and/or accounting entries.  Metz created schedules of transfers of known defective inventory to new inventory.  These schedules supported the nearly $1.03 million fraudulent sales transaction, and did not accurately and fairly reflect the physical inventory of Craig.  Such inventory transfers were made within Craig's accounting system.  Further, Metz directed a Craig employee to include in Craig's reports to its bank inventory that did not exist.  Moreover, Metz created false bills of lading to create the illusion that Craig held title to goods on the water that were actually owned by Craig's suppliers.  Metz falsified and caused others to falsify Craig's books and records and caused the company's books and records to be inaccurate and to not fairly reflect Craig's transactions.  
+
+    2. Record-Keeping and Internal Control Provisions: Section 13(b)(5) of the Exchange Act  
+
+   Section 13(b)(5) of the Exchange Act provides, among other things, that no person shall knowingly circumvent a system of internal accounting controls maintained by a reporting issuer, or knowingly falsify any book, record or account maintained by such an issuer.  A  
+
+ corporate officer can violate Section 13(b)(5) by directing a subordinate to record false or improper entries on the corporation's books in circumvention of its system of internal controls. See In the Matter of Westwood One, Inc., William J. Battison and Gary J. Yusko, Exch. Act Rel. No. 34-33489 (Jan. 19, 1994). 
+
+   Metz violated Section 13(b)(5) of the Exchange Act by knowingly circumventing Craig's internal accounting controls and knowingly falsifying the company's books and records as described above.  
+
+  E. CONCLUSION  
+
+   Accordingly, based on the foregoing, the Commission finds that Metz violated Section 13(b)(5) and caused violations of Section 13(b)(2)(A) of the Exchange Act and violated Rule 13b2-1 thereunder.   
+
+  IV.   
+
+   In view of the foregoing, the Commission deems it appropriate to accept the Offer of Settlement submitted by Metz. 
+
+   Accordingly,  IT IS HEREBY ORDERED  that, pursuant to Section 21C of the Exchange Act, Metz shall, effective immediately, cease and desist from committing or causing any violation and any future violation of Section 13(b)(5) of the Exchange Act and Rule  
+
+ 13b2-1 thereunder, and causing any violation and any future violation of Section 13(b)(2)(A) of the Exchange Act. 
+
+   By the Commission. 
+
+             Jonathan G. Katz
+
+             Secretary 
+
+  Footnotes 
+
+  1     The findings herein are made pursuant to the Offer of Settlement of Bonnie K. Metz and are not binding on any other person or entity in this or any other proceeding.
+
+   2    Craig maintained a December 31 fiscal year.
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1319.txt b/raw/aaer/2000/AAER-1319.txt
new file mode 100644
index 0000000000000000000000000000000000000000..ef0267e69b5b29817dc34f289789f70d4c6c5ac9
--- /dev/null
+++ b/raw/aaer/2000/AAER-1319.txt
@@ -0,0 +1,1440 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Isaac Hager 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358986","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Isaac Hager
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Isaac Hager
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES ACT OF 1933  
+Release No.    7903 / September 27, 2000       
+
+ SECURITIES EXCHANGE ACT OF 1934  
+Release No.  43366 / September 27, 2000        
+
+ ACCOUNTING AND AUDITING ENFORCEMENT  
+Release No.    1319 / September 27, 2000       
+
+ ADMINISTRATIVE PROCEEDING  
+File No. 3-10317 
+
+  ADMINISTRATIVE PROCEEDINGS INSTITUTED AGAINST ISAAC HAGER TO DETERMINE WHETHER HE CAUSED VIOLATIONS OF THE ANTIFRAUD PROVISIONS OF THE FEDERAL SECURITIES LAWS  
+
+   On September 27, 2000, the Securities and Exchange Commission instituted public administrative proceedings pursuant to Section 8A of the Securities Act of 1933 ("Securities Act") and Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Isaac Hager ("Hager"), a former officer and director of Power Phone, Inc. ("Power Phone"), to determine whether Hager caused violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder.  The Division of Enforcement alleges that the senior management of Power Phone orchestrated a fraudulent scheme to falsify and inflate the company's financial condition in filings with the Commission.  Power Phone accomplished the fraudulent scheme by claiming in filings with the Commission to own two assets, consisting of software and artwork, even though Power Phone did not own either asset.  These two assets, which comprised ninety-five percent of Power Phone's total assets, were falsely valued at $4 million in Power Phone's audited financial statements for the fiscal year ended June 30, 1995.  Power Phone included those false financial statements in an Annual Report on Form 10-K that was filed with the Commission in 1995, and a Form 10 registration statement that was filed with the Commission in 1996. The Division alleges that as an officer and director of Power Phone, Hager signed and reviewed Power Phone's annual report and registration statement with knowledge that these documents would be filed with the Commission.  Although Hager, one of only three officers of Power Phone, had never seen the ASAP software or the artwork, he failed to take any steps either to verify the existence of the assets or assure himself of the value of the assets which comprised ninety-five percent of Power Phone's balance sheet. Based on these facts, the Commission instituted public administrative proceedings to determine whether Hager caused violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder. 
+
+ A hearing before an administrative law judge will be scheduled to determine whether the allegations in the Order are true and to determine what remedial action, if any, is appropriate in the public interest.  
+
+  See   also   In the Matter of Joseph Salamon , Exch. Act Rel. No. 42125  / November 10, 1999;  SEC v. Noah Steinberg et. al,  Civ. Action No. 99-6050 (E.D.N.Y.)(RJ) Lit. Rel. No. 16303 (September 28, 1999);  In the Matter of Michael, Adest & Blumenkrantz, P.C., David Michael and Paul Adest , Exch. Act Rel. No. 41284; AAER Rel. No. 1125 (April 14, 1999). 
+
+  
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1322.txt b/raw/aaer/2000/AAER-1322.txt
new file mode 100644
index 0000000000000000000000000000000000000000..f9ef0143c412f694d793c7178e16d09c16339a35
--- /dev/null
+++ b/raw/aaer/2000/AAER-1322.txt
@@ -0,0 +1,1485 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Luis E. Gomez, CPA 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358921","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Luis E. Gomez, CPA
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Luis E. Gomez, CPA
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+    SECURITIES EXCHANGE ACT OF 1934 
+    Release No.  43389 / September 29, 2000 
+
+     ACCOUNTING AND AUDITING ENFORCEMENT 
+    Release No.  1322 / September 29, 2000 
+
+     ADMINISTRATIVE PROCEEDING 
+    File No.  3-10333  
+
+
+     In the Matter of
+		 LUIS E. GOMEZ, CPA,
+		  Respondent.
+		  
+		 ORDER INSTITUTING PUBLIC PROCEEDINGS PURSUANT TO RULE 102(e) OF THE COMMISSION'S RULES OF PRACTICE, MAKING FINDINGS AND IMPOSING SANCTIONS 
+	    I.  
+
+     The Securities and Exchange Commission ("Commission") deems it appropriate that public administrative proceedings be, and hereby are, instituted against Luis E. Gomez ("Gomez") pursuant to Rule 102(e) of the Commission's Rules of Practice.  1    In anticipation of the institution of these proceedings, Gomez has submitted an Offer of Settlement ("Offer") which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings contained herein, except for those set forth below in Section II, paragraph C., which is admitted, Gomez, by his Offer, consents to the entry of the findings and imposition of sanctions contained in this Order Instituting Public Proceedings, Making Findings and Imposing Sanctions ("Order").
+
+      Accordingly, IT IS ORDERED that proceedings against Gomez be, and hereby are, instituted.
+
+     II.  
+
+     On the basis of this Order and the Offer submitted by Gomez, the Commission finds that:
+
+      A.  Luis E. Gomez , age 38, is a resident of Jericho, New York, and was Controller of Health Management, Inc. from December 1993 until July 1996.  Gomez has been licensed in the state of New York as a certified public accountant since October 1995.
+
+      B.  Health Management, Inc.  ("Health Management") is a former Delaware Corporation, which ceased to exist after it was purchased in October 1997.  Health Management was headquartered in Holbrook, New York, and was in the business of providing outpatient drug therapies and management services to individuals, hospitals and insurance companies.  Health Management's stock was registered with the Commission pursuant to Section 12(g) of the Exchange Act and traded on the National Association of Securities Dealers Automated Quotation System ("NASDAQ").
+
+      C. On September 26, 2000, a Final Judgment and Order was entered against Gomez by the United States District Court for the Eastern District of New York, in Securities and Exchange Commission v. Clifford E. Hotte, et al., Civil Action No. CV00-5704 pursuant to his consent.  The Final Judgment and Order permanently enjoined Gomez from future violations of Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 and Rules 10b-5, 13b2-1 and 13b2-2 thereunder; and ordered him to pay a civil penalty in the amount of $10,000.
+
+      D. The Commission's Complaint alleged that, throughout fiscal 1995, beginning May 1, 1994, and continuing through the first two quarters of fiscal 1996, Health Management issued false and misleading quarterly and annual financial statements and press releases in which it materially overstated its revenues, earnings and financial condition.
+
+      E. The Complaint alleged, among other things, that as the controller of Health Management, Gomez knowingly participated in the fraudulent accounting scheme at Health Management.  Gomez prepared fraudulent entries in the company's books and directed other Health Management employees in carrying out the scheme.  Gomez also assisted Health Management's Chief Executive Officer and Chief Financial 
+
+    Officer in the preparation of false financial statements filed with the Commission.  Finally, Gomez misled Health Management's independent auditors in order to conceal the scheme, as well as independent counsel appointed by a Special Committee of the board of Health Management to investigate accounting irregularities.
+
+     III.  
+
+     On the basis of the foregoing, the Commission deems it appropriate to accept the Offer submitted by Gomez and to impose the sanctions specified therein.
+
+      Accordingly, IT IS HEREBY ORDERED, effective immediately, that:
+
+      A. Gomez is suspended from appearing or practicing before the Commission as an accountant.
+
+      B. After five years from the date of this Order, Gomez may request that the Commission consider his reinstatement by submitting an application (attention: Office of the Chief Accountant) to resume appearing or practicing before the Commission as:
+
+        1.  a preparer or reviewer, or a person responsible for the preparation or review, of any public company's financial statements that are filed with the Commission. Such an application must satisfy the Commission that Gomez' work in his practice before the Commission will be reviewed either by the independent audit committee of the public company for which he works or in some other acceptable manner, as long as he practices before the Commission in this capacity; and/or
+
+        2.  an independent accountant.  Such an application must satisfy the Commission that:  (a) Gomez or the firm with which he is associated is a member of the SEC Practice Section of the American Institute of Certified Public Accountants Division for CPA Firms ("SEC Practice Section"); (b) Gomez or the firm has received an unqualified report relating to his or the firm's most recent peer review conducted in accordance with the guidelines adopted by the SEC Practice Section; and (c) as long as Gomez appears or practices before the Commission as an independent accountant, he will remain either a member of the SEC Practice Section or associated with a member firm of the SEC Practice Section, and will comply with all applicable SEC Practice Section requirements, including all requirements for periodic peer reviews, concurring partner reviews, and continuing professional education.
+
+    C. The Commission's review of an application by Gomez to resume appearing or practicing before the Commission may include consideration of, in addition to the matters referenced above, any other matters relating to Gomez' character, integrity, professional conduct, or qualifications to appear or practice before the Commission.  
+
+     By the Commission. 
+
+               Jonathan G. Katz
+
+               Secretary 
+
+  Footnotes 
+
+
+   1     Rule 102(e)(3)(i), in relevant part, provides that the Commission may suspend from appearing or practicing before it any accountant who by name has been permanently enjoined, by a court of competent jurisdiction in an action brought by the Commission, from violating any provision of the federal securities laws or the rules and regulations thereunder.  17 C.F.R. 201.102(e)(3)(i).
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1323.txt b/raw/aaer/2000/AAER-1323.txt
new file mode 100644
index 0000000000000000000000000000000000000000..27ea417e070fd9cc09f83a142035b311945f77f9
--- /dev/null
+++ b/raw/aaer/2000/AAER-1323.txt
@@ -0,0 +1,1485 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Donald C. Yount, CPA 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358911","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Donald C. Yount, CPA
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Donald C. Yount, CPA
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+  SECURITIES EXCHANGE ACT OF 1934 
+  Release No.    43391 / September 29, 2000      
+
+   ACCOUNTING AND AUDITING ENFORCEMENT 
+  Release No.    1323 / September 29, 2000          
+
+   ADMINISTRATIVE PROCEEDING 
+  File No.  3-10335  
+
+   In the Matter of
+		 DONALD C. YOUNT,  CPA,
+		  Respondent.
+		  
+		 ORDER INSTITUTING PUBLIC PROCEEDINGS, MAKING FINDINGS AND ORDER PURSUANT TO RULE 102(e) OF THE COMMISSION's RULES OF PRACTICE  
+	   I. 
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate  to institute a public administrative proceeding against Respondent Donald C. Yount pursuant to Rule 102(e) of the Commission's Rules of Practice [17 C.F.R.§ 201.102(e)].  1    In anticipation of the institution of this proceeding, Yount has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings contained herein, except that he admits the jurisdiction of the Commission over him for the purpose of this proceeding and over the matters set forth in this Order and admits the Commission's finding that a Final Judgment of Permanent Injunction has been entered against him as set forth in Section II.,  Yount consents to the entry of findings and the imposition of the remedial sanctions set forth below.  
+
+    II. 
+
+ The Commission finds the following:
+
+    A. Yount, age 39, was at all relevant times Senior Vice President and Chief Financial Officer of Versatility, Inc. ("Versatility") and is a certified public accountant, registered in the state of North Carolina;
+
+    B. Versatility is a Delaware corporation with its principal place of business in Fairfax, VA.  Versatility's common stock was at all relevant times registered with the Commission pursuant to Section 12(g) of the Securities Exchange Act of 1934 ("Exchange Act") and listed on NASDAQ.  
+
+    C. On September 19, 2000, the Commission filed a complaint against Yount and others in the United States District Court for the District of Columbia.  SEC v. Charnock, et al., Civil Action No. 00 2239.  The Commission's complaint alleged, among other things, that (1) from at least May 1996 through December 1997, Yount, as Senior Vice President and Chief Financial Officer of Versatility, knowingly or recklessly participated in the material overstatement of Versatility's assets, revenues and earnings in its financial statements included in periodic reports and registration statements filed with the Commission;  (2) Yount aided and abetted Versatility's failure to devise and maintain a system of internal accounting controls;  and (3)  Yount provided false or misleading management representation letters to Versatility's auditors in connection with Versatility's audit for fiscal year 1997 and in connection with registration statements Versatility filed in December 1996 and March 1997.  
+
+  D. On September 27, 2000, a final judgment was entered by the United States District Court for the District of Columbia permanently enjoining Yount from violating Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Exchange Act and Rules 10b-5, 13b2-1 and 13b2-2 thereunder and aiding and abetting violations of Section 13(b)(2)(B) of the Exchange Act.  Yount consented to the entry of the final judgment without admitting or denying the allegations of the Commission's complaint.    
+
+              III. 
+
+   Based on the foregoing, the Commission deems it appropriate to accept Yount's Offer of Settlement and accordingly, 
+
+    IT IS HEREBY ORDERED, effective immediately, that Yount is suspended from the privilege of appearing or practicing before the Commission as an accountant.
+
+    After three (3) years from the date of this order, Yount may request that the Commission consider his reinstatement by submitting an application (attention:  Office of the Chief Accountant) to resume appearing or practicing before the Commission as:
+
+    1. a preparer or reviewer, or a person responsible for the preparation or review, of any public company's financial statements that are filed with the Commission.  Such an application must satisfy the Commission that Respondent's work in his practice before the Commission will be reviewed either by the independent audit committee of the public company for which he works or in some other acceptable manner, as long as he practices before the Commission in this capacity; and/or 
+
+    2. an independent accountant.  Such an application must satisfy the Commission that:  (a) Yount, or the firm with which he is associated, is a member of the SEC Practice Section of the American Institute of Certified Public Accountants Division for CPA Firms ("SEC Practice Section"), 
+
+      (b) Yount, or the firm, has received an unqualified report relating to his firm's most recent peer review conducted in accordance with the guidelines adopted by the SEC Practice Section, and (c) as long as Yount appears or practices before the Commission as an independent accountant he will remain either a member of the SEC Practice Section or associated with a member firm of the SEC Practice Section, and will comply with all applicable SEC Practice Section requirements, including all requirements for periodic peer reviews, concurring partner reviews, and continuing professional education.
+
+    3. The Commission's review of an application by Yount to resume appearing or practicing before the Commission may include consideration of, in addition to the matters referenced above, any other matters relating to Yount's character, integrity, professional conduct, or qualifications to appear or practice before the Commission.  
+
+
+   By the Commission.  
+
+             Jonathan G. Katz
+
+             Secretary 
+			
+  Footnotes 
+
+   1     Rule 102(e) provides, in pertinent part:
+
+    (3)(i) The Commission, with due regard to the public interest and without preliminary hearing, may, by order . . . suspend from appearing or practicing before it any . . . accountant . . . who . . . has been by name:
+
+      (A) Permanently enjoined by any court of competent jurisdiction by reason of his misconduct in an action brought by the Commission, from violation or aiding and abetting the violation of any provision of the Federal securities laws (15 U.S.C. §§ 77a-80b-20) or of the rules and regulations thereunder . . .
+
+      (iv) . . . A person who has consented to the entry of a permanent injunction.  . . without admitting the facts set forth in the complaint shall be presumed for all purposes under this paragraph (3) to have been enjoined by reason of the misconduct alleged in the complaint.
+
+  
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1324.txt b/raw/aaer/2000/AAER-1324.txt
new file mode 100644
index 0000000000000000000000000000000000000000..8d6a3124625ff1635c7a8f971748eab78332a57c
--- /dev/null
+++ b/raw/aaer/2000/AAER-1324.txt
@@ -0,0 +1,1372 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Michael L. Hiebert 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484156","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Michael L. Hiebert
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Michael L. Hiebert
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+               U.S. SECURITIES AND EXCHANGE COMMISSION  
+
+  Litigation Release No.  16729 / September 27, 2000  
+
+   Accounting and Auditing Enforcement Release No. 1324 / September 27, 2000
+
+  SECURITIES AND EXCHANGE COMMISSION v. MICHAEL L. HIEBERT 
+
+   Civil Action No. SACV-00947 GLT(ANx)(C.D. Cal.)  
+
+     On September 27, 2000, the Securities and Exchange Commission filed a complaint in federal court in Orange County, California alleging financial statement fraud against Michael L. Hiebert (Hiebert), the former Chief Financial Officer of Premier Laser Systems, Inc. (Premier), a now-bankrupt manufacturer of medical lasers and fiber optic devices based in Orange County, California.  
+
+     The complaint alleges that Hiebert caused Premier to recognize $2.4 million in revenue improperly during the company's fiscal third quarter ended December 31, 1997, from the purported sale of lasers to Henry Schein, Inc. (Schein).  The complaint alleges that Schein had not placed an order but had only entered into a non-binding letter of intent pursuant to which it agreed to market Premier's dental lasers.  
+
+    The complaint alleges that Hiebert failed to review adequately documentation supporting the fictitious sale, even though the order was the largest Premier had ever received and resulted in the company's first-ever quarterly profit.  Consequently, the complaint alleges that Premier's now-deceased Executive Vice President was able to perpetrate a fraudulent scheme involving the creation of a fictitious Customer Order Form and the shipment of 100 lasers to a warehouse.  The complaint also alleges that Hiebert failed to recognize several red flags apparent on the face of the Customer Order Form.  Hiebert also concluded without basis that Schein had agreed to purchase the lasers.  Finally, Hiebert recklessly accepted at face value the Executive Vice President's assurances that installation of the lasers was proceeding and that payment would be received the following month.  As a result, Premier overstated quarterly revenue by more than a third in its fiscal third quarter Form 10-Q.  
+
+    The complaint also alleges that Hiebert tolerated internal control deficiencies that led to the improper recognition of the $2.4 million sale.  Hiebert failed to adhere to written guidelines that required the company to obtain signed purchase orders from distributors before recognizing revenue from laser sales.  Hiebert also failed to supervise his accounting staff adequately.  Hiebert delegated day-to-day management of the department to a staff accountant, and did not require the accounting department staff to use Premier's procedures manual.  Hiebert also failed to implement formal procedures for the department governing the collection of accounts receivable.    
+
+    Hiebert agreed to settle this matter by consenting to a judgment, without admitting or denying the allegations in the Commission's complaint.  The judgment permanently enjoins Hiebert from future violations of the antifraud provisions (Section 17(a) of the Securities Act    of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5), reporting provisions (Section 13(a) of the Exchange Act and Rules 12b-20 and 13a-13), books and records provision (Section 13(b)(2)(A) of the Exchange Act), falsifying books and records provision (Rule 13b2-1), and internal control provision (Section 13(b)(2)(B) of the Exchange Act).  The judgment also orders Hiebert to pay a civil penalty of $10,000.  
+
+    In a related matter, Premier consented, without admitting or denying the Commission's findings (outlined above), to the entry of a cease-and-desist order prohibiting the company from violating or causing violations of the aforementioned antifraud, reporting, books-and-records and internal control provisions of the federal securities laws.  See Rel. Nos. 33- 7902 .                     .   
+
+ 
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1325.txt b/raw/aaer/2000/AAER-1325.txt
new file mode 100644
index 0000000000000000000000000000000000000000..2317f286ec410ce17794b2e629611a8d31da9bb4
--- /dev/null
+++ b/raw/aaer/2000/AAER-1325.txt
@@ -0,0 +1,1379 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Maurice B. Newman and Richard A. Gerhart 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484161","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Maurice B. Newman and Richard A. Gerhart
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Maurice B. Newman and Richard A. Gerhart
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+               U.S. SECURITIES AND EXCHANGE COMMISSION  
+
+  Litigation Release No. 16730 / September 27, 2000  
+ 
+  Accounting and Auditing Enforcement Release No. 1325 / September 27, 2000
+
+  SEC v. Maurice B. Newman and Richard A. Gerhart, Civil Action No. SACV-00948GLT (Eex)(C.D. Cal.).  
+
+    On September 27  ,   2000, the Securities and Exchange Commission filed an action alleging financial statement fraud against the former Chief Executive Officer and the former Chief Financial Officer of Sirena Apparel Group, Inc. ("Sirena"), a women's swimwear manufacturer located in Los Angeles County, California.  The complaint alleges that, in order to meet revenue and earnings projections, Maurice B. Newman, former CEO, and Richard A. Gerhart, former CFO, caused Sirena to report false financial information in an earnings press release and a quarterly report for the third quarter ended March 31, 1999.    
+
+    Also on September 27, 2000, the United States Attorney for the Central District of California announced indictments against Newman and Gerhart for conduct similar to that alleged in the Commission's complaint.  
+
+    The Commission's action, filed in federal court in Los Angeles, alleges that Newman and Gerhart materially overstated Sirena's revenue by $3.6 million (or 13%) and earnings by $1.3 million (or 30%).  As part of their fraudulent scheme, the complaint alleges that Newman and Gerhart engaged in the following conduct:  
+
+    Newman and Gerhart instructed Sirena personnel to hold open the March 1999 fiscal quarter until Sirena had reached its sales target for that period.  The quarter was held open by resetting the date on Sirena's computer clock to March 30 or March 31.  Manipulation of the computer clock allowed April shipments to be recorded as March revenue because the computer clock controlled the date that was printed on the company's invoices.  The computer system also automatically recorded revenue earned as of the date of the invoice.  In this way, Newman and Gerhart held the March 1999 quarter open until April 12, 1999.  
+
+     Newman and Gerhart told Sirena's independent auditors that the sales cutoff for the March 31, 1999 quarter was proper; in fact, Newman and Gerhart were circumventing the company's internal controls to extend the cutoff period improperly.   
+
+     Newman and Gerhart ordered Sirena personnel to create false shipping records to conceal their scheme.  Newman and Gerhart knew that the bills of lading for the out-of-period shipments reflected April 1999 shipping dates.  When Newman and Gerhart learned that Sirena's independent auditors would be testing shipping cutoff for the March 31, 1999 quarter, they instructed a subordinate to create false bills of lading to reflect March 1999 shipping dates in order to conceal the fraud from the auditors. 
+    The Commission's complaint alleges that Newman and Gerhart violated the antifraud provision (Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder), the books and records provision (Rule 13b2-1 of the Exchange Act), knowing circumvention of internal controls provision (Section 13(b)(5) of the Exchange Act) and lying-to-an-accountant provision (Rule 13b2-2 of the Exchange Act).  Additionally, the complaint alleges that Newman and Gerhart aided and abetted Sirena's violations of the reporting provision (Section 13(a) of the Exchange Act and Rules 12b-20 and 13a-13 thereunder) and record-keeping provision (Section 13(b)(2)(A) of the Exchange Act).    
+
+  The Commission's complaint seeks permanent injunctions and civil penalties against the defendants.  Additionally, as to Gerhart, the complaint seeks an order barring Gerhart from serving as an officer or director of a public company.  
+
+  Simultaneous with the filing of the Commission's complaint, Newman offered to settle the action by consenting to a permanent injunction, without admitting or denying the allegations in the complaint, for the violations outlined above. Newman also agreed to pay a civil penalty in the amount of $30,000.  
+
+     The defendants named in the Commission's complaint are:  
+     Maurice B. Newman  of Marina Del Rey, California.  Newman was Sirena's Chairman of the Board of Directors and CEO.  Before that, he was the President and CEO of the CaliforniaMart, the largest fashion and textile facility in the United States.  
+
+       Richard A. Gerhart  of Irvine, California.  Gerhart, as CFO, oversaw and reviewed all financial record-keeping and reporting for Sirena.  He also signed Sirena's quarterly report filed with the Commission.  
+   
+ 
+      
+                                   
+               
+     
+
+       
+
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1326.txt b/raw/aaer/2000/AAER-1326.txt
new file mode 100644
index 0000000000000000000000000000000000000000..78266ddd1cfc3e14ffa24deb014cb4871eea7a4c
--- /dev/null
+++ b/raw/aaer/2000/AAER-1326.txt
@@ -0,0 +1,1384 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Bonnie K. Metz 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484166","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Bonnie K. Metz
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Bonnie K. Metz
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+               U.S. SECURITIES AND EXCHANGE COMMISSION  
+
+  Litigation Release No. 16731  / September 27, 2000  
+
+   Accounting and Auditing Enforcement Release No. 1326 / September 27, 2000
+
+   SEC v. Richard I. Berger and Donna M. Richardson, Civil Action No. 00-10351 R (JWJx)(C.D. Cal.).  
+
+   On September 27  ,   2000, the Securities and Exchange Commission filed a complaint alleging financial statement fraud against the former Chief Executive Officer and the former Chief Financial Officer of Craig Consumer Electronics, Inc. ("Craig").  Craig was a former marketer of consumer electronic products that was located in Los Angeles County, California. The complaint charges Richard I. Berger, former CEO, and Donna M. Richardson, former CFO, with fraud in connection with Craig's initial public offering registration statement and in periodic financial reports filed on behalf of Craig in 1996 and 1997.  
+
+    Also on September 27, 2000, the United States Attorney for the Central District of California announced indictments against Berger, Richardson and Bonnie K. Metz for conduct similar to that alleged in the Commission's complaint.  
+
+    The Commission's action, filed in federal court in Los Angeles, alleges that Berger and Richardson failed to disclose the true state of Craig's precarious financial condition and the true state of Craig's cash flow situation in periodic reports and Craig's IPO registration statement.  As part of their fraudulent scheme, the complaint alleges:  
+    Berger and Richardson inflated Craig's accounts receivable that were used to secure a line of credit from a bank.  The credit agreement allowed Craig to borrow against its receivables minus any sales returns.  Berger and Richardson inflated the accounts receivable by delaying the processing of the sales returns in an area of Craig's computer system called the "queue."  Each day, Berger and Richardson manipulated processing of the sales returns to meet Craig's daily cash flow needs.  As a result, Craig exceeded its credit limit by a significant amount. 
+
+      Berger and Richardson also inflated Craig's inventory levels, which were also used to secure its line of credit.  Berger and Richardson directed Craig employees to transfer defective goods into "new" or "refurbished" categories.  Craig's credit agreement allowed it to borrow against new goods and to a lesser extent against refurbished goods, but not at all against defective goods.  As a result of the manipulation of its inventory levels, Craig exceeded its credit limit by a significant amount. 
+
+      Berger and Richardson instructed Craig employees not to tell Craig's outside accountants or the bank about the queue; Berger also instructed employees not to tell the outside accountants or the bank about the improper inventory transfers.   
+    The Complaint further alleges that, in addition to the conduct described above, Berger caused Craig to overstate its revenue and earnings for the first quarter 1997.  As alleged in the complaint, Berger caused Craig to recognize improperly $1.3 million in revenue by recognizing sales of known defective product.  This resulted in Craig overstating its revenue by 11% and understating its pretax loss by 14%.    
+
+  The Commission's complaint alleges that Berger and Richardson violated or aided and abetted violations of the antifraud provisions (Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder), the reporting provision (Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder), record keeping provision (Section 13(b)(2)(A) of the Exchange Act), internal controls provision (Section 13(b)(2)(B) of the Exchange Act), books and records provision (Rule 13b2-1 of the Exchange Act), knowing circumvention of internal controls provisions (Section 13(b)(5) of the Exchange Act) and lying to an accountant provision (Rule  13b2-2 of the Exchange Act).   
+
+  The Commission's complaint seeks permanent injunctions and civil penalties against the defendants.  Additionally, as to Berger, the complaint seeks an order barring him from serving as an officer or director of a public company.  
+
+  Simultaneous with the filing of the Commission's complaint, Berger offered to settle the action by consenting to a permanent injunction, without admitting or denying the allegations in the complaint, for the violations outlined above. Berger also agreed to pay a civil penalty in the amount of $25,000 and to be barred from serving as an officer or director for a period of five years.  
+
+     The defendants named in the Commission's complaint are:  
+
+      Richard I. Berger  of Rolling Hills Estates, California.  Berger was Craig's Chairman of the Board of Directors and CEO.  
+
+        Donna M. Richardson  of Dracut, Massachusetts.  
+
+    In a related administrative proceeding, the Commission found that Craig's Vice-President/Managing Director for Craig's Hong Kong office, Bonnie M. Metz, knowingly circumvented Craig's internal controls by falsifying bills of lading to create the illusion that Craig held title to goods owned by others.  Without admitting or denying the findings in the Commission's Order, Metz agreed to cease and desist from knowingly circumventing Craig's internal controls and falsifying Craig's books and records.  In the Matter of Bonnie K. Metz, Admin. Proc. File No. 3-10316 (Sept. 27, 2000).  
+
+  In another related administrative proceeding, the Commission instituted a proceeding against Craig to determine whether to revoke its registration for common stock.  In the Matter of Craig Consumer Electronics, Inc., Admin. Proc. File No. 3-10315 (Sept. 27, 2000).    
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1327.txt b/raw/aaer/2000/AAER-1327.txt
new file mode 100644
index 0000000000000000000000000000000000000000..1a73382a3dfa2cc646facc1d7c7acb8c42b0d290
--- /dev/null
+++ b/raw/aaer/2000/AAER-1327.txt
@@ -0,0 +1,1388 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Countryland Wellness Resorts, Inc., Fred Cruz (a.k.a. Federico Cruz Gonzalez), Luis R. Hidalgo, Jr., and Donald E. Studer 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484171","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Countryland Wellness Resorts, Inc., Fred Cruz (a.k.a. Federico Cruz Gonzalez), Luis R. Hidalgo, Jr., and Donald E. Studer
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Countryland Wellness Resorts, Inc., Fred Cruz (a.k.a. Federico Cruz Gonzalez), Luis R. Hidalgo, Jr., and Donald E. Studer
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+               U.S. SECURITIES AND EXCHANGE COMMISSION  
+
+  Litigation Release No. 16732 / September 27, 2000  
+
+   Accounting and Auditing Enforcement Release No. 1327 / September 27, 2000
+
+   SEC v. Countryland Wellness Resorts, Inc., Fred Cruz (a.k.a. Federico Cruz Gonzalez), Luis R. Hidalgo, Jr., and Donald E. Studer, Civil Action No. CV-S-00-1160-PMP (RJJ)(D. Nev.).  
+
+  On September 26, 2000, the Securities and Exchange Commission filed an action in federal court in Las Vegas alleging financial statement fraud against Countryland Wellness Resorts, Inc. ("Countryland"), its president and Board Chairman Fred Cruz (a.k.a. Federico Cruz Gonzalez)("Cruz"), its auditor Luis R. Hidalgo, Jr. ("Hidalgo"), and its attorney Donald E. Studer ("Studer") for the false reporting of assets in periodic filings and a registration statement made with the Commission from 1997 to the present.   
+
+    The Commission's action alleges that Countryland lied to investors about the following assets reported in its financial statements and in various Commission filings:    
+   dirt stored in a warehouse was reported as gold with a value ranging from $19.5 million to over $27.3 million.    
+
+     mining reserves were reported to have values ranging from $1.2 billion to $2.1 billion; in fact, extensive work needed to be performed to determine the amount and value, if any, of recoverable minerals.  Nonetheless, Countryland reported the mining reserves as assets from 1997 through 2000.    
+
+     Indonesian bank guarantees were reported to have values ranging from $400 million to $1.1 billion; in fact, the bank guarantees did not exist.   
+
+    With respect to Hidalgo only, the Commission's complaint alleges that Hidalgo rendered false audit reports on Countryland's 1996, 1997 and 1998 financial statements.  The Commission alleges that Hidalgo falsely stated that Countryland's financial statements were presented in conformity with Generally Accepted Accounting Principles and that he conducted his audit in accordance with Generally Accepted Auditing Standards.  In fact, the audits were not performed in accordance with GAAS and the financial statements were not prepared in conformity with GAAP.    
+
+  The complaint further alleges that Cruz, along with Countryland's counsel, Studer, knowingly included an unauthorized audit report in a June 1999 registration statement filed with the Commission.  
+
+  The Commission's complaint alleges that Countryland, Cruz, Hidalgo, and Studer violated the antifraud provisions (Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder).  Additionally, the complaint alleges that Countryland violated and Cruz aided and abetted Countryland's violations of the reporting (Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder), record-keeping (Section 13(b)(a)(A) of the Exchange Act) and internal control provisions (Section 13(b)(2)(B) of the Exchange Act).  Cruz also falsified Countryland's books and records (Rule 13b2-1 of the Exchange Act) and violated the lying-to-an-accountant provisions (Rule 13b2-2 of the Exchange Act).  
+
+  The complaint seeks a permanent injunction against each of the defendants, and civil penalties against Cruz, Hidalgo, and Studer.  
+
+  Simultaneous with the filing of the Commission's complaint, Countryland, Cruz, Hidalgo, and Studer offered to settle the action by consenting to a permanent injunction, without admitting or denying the allegations in the complaint, for the violations outlined above.  Cruz also agreed to pay a civil penalty in the amount of $55,000.  No penalties were assessed against Studer and Hidalgo based on their demonstrated inability to pay.  
+
+     The defendants are:  
+
+      Countryland Wellness Resorts, Inc. , a Delaware corporation. Countryland maintains its offices in Las Vegas, Nevada.  Countryland claims to be in the mining and electrical contracting business and purports to plan to operate a longevity center at a wellness resort and casino in Las Vegas.  Countryland stock is not listed on any national securities exchange.  
+
+       Fred Cruz (a.k.a. Federico Cruz Gonzalez)  of Las Vegas, Nevada.  Since 1987, Cruz has served as Countryland's President, Board Chairman, and as a Director. 
+
+      Luis R. Hidalgo, Jr. , a certified public accountant licensed in California, of Fremont, California. 
+
+      Donald E. Studer , an attorney licensed to practice law in California and Louisiana, of West Monroe, Louisiana.  Studer has served as a Director and corporate counsel for Countryland since 1984. 
+    In a separate enforcement action, on September 27, 2000, the Commission instituted an administrative proceeding against Countryland seeking to revoke the registration of Countryland's common stock.  See Administrative Release No. 3-10314 (Sept. 27, 2000).  
+
+
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1328.txt b/raw/aaer/2000/AAER-1328.txt
new file mode 100644
index 0000000000000000000000000000000000000000..4ef0e6f289061b8dc11018ad9a2b226372202f14
--- /dev/null
+++ b/raw/aaer/2000/AAER-1328.txt
@@ -0,0 +1,1363 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | James Horne and Matthew Welch 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484181","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              James Horne and Matthew Welch
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        James Horne and Matthew Welch
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+  
+LITIGATION RELEASE NO.  16734  /September 27,  2000			
+
+    Accounting and Auditing Enforcement Release No. 1328 / September 27, 2000
+
+  SEC Charges Former President and Controller of OakGrigsby, Inc. with Financial Fraud
+  
+SECURITIES AND EXCHANGE COMMISSION v. MATTHEW R. WELCH AND JAMES C. HORNE (United States District Court for the Northern District of Illinois, Civ. No. 00-C-5935)
+  Today, the Commission filed a complaint in the U.S. District Court for the Northern District of Illinois alleging that between July 1995 and January 3, 1997, defendants James Horne and Matthew Welch, respectively the former president and controller of OakGrigsby, Inc., engaged in a scheme to falsify certain of OakGrigsby's financial records in order to make the company appear more profitable than it was.  Due to the defendants' falsifications, OakGrigsby, which was a Sugar Grove, Illinois division of Oak Industries, Inc., reported operating profits during the period of the fraud that were overstated by 108% to 371%.  Oak Industries incorporated OakGrigsby's inflated numbers in its periodic reports and press releases and, as a result, Oak Industries' income and earnings per share during this period were overstated in amounts ranging from 2% to 15%.  
+  Specifically, the Complaint alleges that Defendants Welch and Horne engaged in a scheme to inflate OakGrigsby's reported earnings by making a series of improper entries on OakGrigsby's books that improperly increased the division's reported profits.  As part of this scheme, Welch fraudulently concealed expenses such as salaries, shipping and travel.  The Complaint alleges that several of these fraudulent entries were made with the knowledge and approval of Defendant Horne, the divisional president of OakGrigsby until March 1996.  OakGrigsby's results were consolidated with other Oak divisions and incorporated into Oak's periodic reports and press releases.  As a result of Welch and Horne's actions, Oak's income per share for the quarter ended December 31, 1995 and the quarters ended March 31, June 30 and September 30, 1996 were materially overstated.
+   According to the Complaint, Welch, a Naperville, Illinois resident, and Horne, a Lake Bluff, Illinois resident, inflated reported OakGrigsby's profits to ensure that the division met specified earnings targets which allowed Horne and Welch to earn bonuses of $55,000 and $15,000, respectively.   
+  Welch's fraud was discovered by the company in January 1997, and on February 10, 1997, Oak filed restated reports covering the fourth quarter of 1995 and the first three quarters of 1996.  In January 2000, Oak, whose shares had been publicly traded on the New York Stock Exchange, was acquired by Corning, Incorporated.
+  As a result of the conduct described in the Complaint, the Commission has charged Welch and Horne with violations of Sections 10(b) of the Securities and Exchange Act of 1934 ("Exchange Act") and Exchange Act Rule 10b-5 thereunder (antifraud provisions) and Exchange Act Rule 13b2-1 (prohibiting falsification of issuer books and records).  The defendants are also charged with aiding and abetting violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder (issuer books and records and internal accounting controls provisions), and, in addition, Welch is charged with violating Section 13(b)(5) of the Exchange Act (prohibiting knowing falsification of issuer books and records and evasion of internal accounting controls).  The Commission's Complaint seeks injunctive relief, disgorgement and civil penalties of bonuses received by Horne and Welch, plus prejudgment interest.
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1329.txt b/raw/aaer/2000/AAER-1329.txt
new file mode 100644
index 0000000000000000000000000000000000000000..58df28fa9c1844e2fa18b05c037b98112853f751
--- /dev/null
+++ b/raw/aaer/2000/AAER-1329.txt
@@ -0,0 +1,1378 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Jay Gilbertson, Albert Bergonzi and Dominick Derosa 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484226","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Jay Gilbertson, Albert Bergonzi and Dominick Derosa
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Jay Gilbertson, Albert Bergonzi and Dominick Derosa
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              UNITED STATES SECURITIES AND EXCHANGE COMMISSION
+
+  Litigation Release No.  16743 / October 2, 2000
+
+  Accounting and Auditing Enforcement Release No. 1329 / October 2, 2000 
+
+  SECURITIES AND EXCHANGE COMMISSION v. JAY GILBERTSON, ALBERT BERGONZI AND DOMINICK DEROSA, United States District Court for the Northern District of California, Civil Action No. C-00-3570 (WHA)
+
+   SEC Charges Former Executives In Massive Financial Reporting Fraud At McKesson HBOC 
+
+    The Securities and Exchange Commission today announced the first charges from its continuing investigation into financial reporting fraud at McKesson HBOC, a Fortune 100 company with headquarters in San Francisco, California.  McKesson HBOC was formed by the January 1999 merger of San Francisco-based McKesson Corporation with HBO & Company, an Atlanta, Georgia-based vendor of healthcare software.  The Commission's action charges three people, including the two top officers of HBO & Company, with participating in a long-running fraudulent scheme to inflate the company's revenue and net income.  In a separate action, the U.S. Attorney's Office for the Northern District of California also filed criminal charges against two of the officers.
+
+  According to the Commission's complaint, the fraud began at HBO & Company in 1997 and continued in successive quarters through the March 1999 quarter, which was the first combined reporting period for McKesson HBOC.  The defendants' fraud enabled HBO & Company to report falsely in press releases and in periodic reports filed with the Commission that the company was having an unbroken run of financial success and that HBO & Company had continually exceeded analysts' quarterly earnings expectations.  However, when McKesson HBOC announced in April 1999 that the company was conducting an internal investigation into financial reporting irregularities, its shares tumbled from approximately $65 to $34, a drop that slashed the company's market value by more than $9 billion.
+
+  The Commission's complaint charges that two former top executives of HBO & Company, Jay P. Gilbertson and Albert J. Bergonzi, were the architects of this fraudulent scheme to "cook the books."  While carrying out this scheme, defendants unjustly enriched themselves with lucrative bonuses tied to the company's financial performance, as well as sales of HBO & Company stock at prices inflated by their fraud.  Gilbertson and Bergonzi were HBO & Company's Co-Presidents and Co-Chief Operating Officers, and Gilbertson was also HBO & Company's Chief Financial Officer until he left the company in November 1998.  Following the January 1999 merger, Bergonzi was an Executive Vice President of McKesson HBOC, and remained President of the HBO & Company division of the combined company until June 1999.
+
+    The Commission's complaint also names as a defendant Dominick A. DeRosa, who was Vice President of Enterprise Sales of HBO & Company until September 1998.  The complaint alleges that Bergonzi, Gilbertson, and DeRosa repeatedly took active steps to perpetuate the fraud and conceal their actions from the public, including:  
+      Concealing contingencies related to software sales contracts in "side letters," which were hidden from HBO & Company's accounting staff responsible for revenue recognition.  These side letter contingencies included such terms as rights to cancel, and even provided in some cases for continuing negotiations of the contract.  Under generally accepted accounting principles, software sales contracts cannot be recorded as revenue until such contingencies are resolved.  
+
+       Fraudulently accounting for quarter- and year-end revenue by routinely backdating contracts so they fell within the prior quarter.
+
+       Making fraudulent journal entries designed to understate expenses and inflate HBO & Company's net income.  
+
+       Swapping product with other companies and creating misleading documentation in order to generate fraudulent software sales revenue.
+   As a result of the fraud, the financial statements of HBO & Company, and later McKesson HBOC, were materially false and misleading during at least the period January 1998 through April 1999.  The Commission's complaint alleges that the defendants violated the antifraud, internal controls, and books and records provisions of the federal securities laws, and also alleges that Gilbertson violated the rule against lying to auditors (Section 17(a) of the Securities Act of 1933, and Sections 10(b) and 13(b)(5) of the Exchange Act of 1934 and Rules 13b2-1 and 13b2-2 thereunder).  The complaint also alleges that each of the defendants was unjustly enriched through significant bonuses tied to meeting earnings expectations, or through sales of HBO & Company stock while the price was inflated due to their fraud, and seeks to compel disgorgement of these sums.  The complaint further seeks to suspend or bar the defendants from serving as officers or directors of public companies.
+
+    Simultaneous with the filing of the Commission's civil complaint, DeRosa consented, without admitting or denying the allegations in the Commission's complaint, to the entry of a permanent injunction against all of the alleged violations.  He agreed to disgorge $361,528.80 in ill-gotten gains (including interest) and to pay a civil penalty of $50,000.  DeRosa also agreed to be barred for five years from serving as an officer or director of a public company.  
+
+    In a separate action, the U.S. Attorney's Office for the Northern District of California announced criminal charges against Gilbertson and Bergonzi for their roles in the fraud.
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1330.txt b/raw/aaer/2000/AAER-1330.txt
new file mode 100644
index 0000000000000000000000000000000000000000..4257a75c5850bb2bf9fd7df2bac00abd3f7d87eb
--- /dev/null
+++ b/raw/aaer/2000/AAER-1330.txt
@@ -0,0 +1,1373 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Walter Königseder 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484296","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Walter Königseder
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Walter Königseder
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+  LITIGATION RELEASE NO. 16757 \ October 5, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT RELEASE NO. 1330
+
+  Securities and Exchange Commission v. Walter K¶nigseder,
+
+  Civil Action No. C-00-3668 (MJJ) (N.D. Cal.  Filed Oct. 5, 2000)
+
+  SECURITIES AND EXCHANGE COMMISSION SUES FORMER INFORMIX CORPORATION SENIOR MANAGER FOR FRAUD AND OTHER VIOLATIONS
+
+  The Securities and Exchange Commission ("Commission") today filed a civil injunctive action in the United States District Court for the Northern District of California against Walter K¶nigseder ("K¶nigseder"), formerly a Vice President of Informix Corporation ("Informix" or "Company").  In its Complaint, the Commission alleges that K¶nigseder approved, ratified, or directed a variety of actions that aided and abetted Informix's material overstatement of revenue and earnings for 1996 and the final three quarters of that year.  The Commission further alleges that, after causing the Company to overstate its revenues and earnings, K¶nigseder lied about his knowledge of, and involvement in, the transactions.  According to the Complaint, as a result of his misconduct, K¶nigseder violated, or aided and abetted violations of, antifraud, reporting, record-keeping, and internal control provisions of the Securities Exchange Act of 1934 ("Exchange Act").
+
+  According to the Complaint, K¶nigseder approved and ratified secret side letter agreements in connection with software license sales contracts that made revenue recognition on those contracts improper, and he approved and signed a purported contract that mischaracterized the underlying transaction so that revenue could be recognized prematurely.  To inflate revenues and earnings further, K¶nigseder directed the Company to enter into a phony software license sales contract.
+
+  The Commission alleges that K¶nigseder's misconduct caused the Company improperly to recognize approximately $25.5 million of revenue on six transactions and thus aided and abetted the Company's overstatement of quarterly and annual net income.  According to the Complaint, K¶nigseder subsequently signed a statement in which he lied about his knowledge of, and involvement in, the transactions for which revenue was recognized improperly.
+
+  The Commission seeks an order permanently enjoining K¶nigseder from violating, or aiding and abetting violations of, sections 10(b), 13(a), 13(b)(2), and 13(b)(5) of the Exchange Act and Exchange Act rules 10b-5, 12b-20, 13a-1, 13a-13, and 13b2-1.
+
+  Separately today, the Office of the United States Attorney for the Northern District of California ("USAO") announced that it had indicted K¶nigseder for wire fraud and criminal securities violations.  Today's civil and criminal actions are the result of investigations by the Commission, the USAO, and the San Francisco office of the Federal Bureau of Investigation.
+
+  Previously, the Commission instituted and simultaneously settled an administrative proceeding against Informix.  Informix Corp., Admin. Proc. No. 3-10130; SA Rel. No. 33-7788; SEA Rel. No. 34-42326; AAE Rel. No. 1215 (Jan. 11, 2000).
+
+  The Commission's investigation is continuing.
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1331.txt b/raw/aaer/2000/AAER-1331.txt
new file mode 100644
index 0000000000000000000000000000000000000000..2e785f985d97b0cf1187568b84cfba7740528ff2
--- /dev/null
+++ b/raw/aaer/2000/AAER-1331.txt
@@ -0,0 +1,1360 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | William F. Mahon and Dean J. Jupiter 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484266","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              William F. Mahon and Dean J. Jupiter
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        William F. Mahon and Dean J. Jupiter
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+
+  Litigation Release No.  16751 \ October 4, 2000
+
+  SEC v. William F. Mahon and Dean J. Jupiter, Civil Action No. S-00-2918
+
+  The Securities and Exchange Commission announced today that on September 28, 2000, it filed a complaint against William F. Mahon, a resident of Timonium, Maryland and Dean J. Jupiter, a resident of Coral Springs, Florida, alleging that Mahon violated the antifraud and certain record-keeping provisions and Jupiter violated the antifraud provisions of the federal securities laws.   The Commission also announced that on September 29, 2000, pursuant to Mahon's consent, the Honorable Frederic N. Smalkin, United States District Judge for the District of Maryland, Northern Division, permanently enjoined Mahon and ordered him to pay disgorgement of $190,000 as well as prejudgment interest.  The Court reserved ruling on the appropriate rate of interest to be used to calculate prejudgment interest and the amount of civil penalties, if any, Mahon will be ordered to pay.  The lawsuit against Jupiter is pending.            
+
+  According to the complaint, from at least 1992 through April 1997, Mahon, a portfolio manager for Alexander & Alexander Services Inc., engaged in a scheme to defraud by trading millions of dollars in high-risk derivative securities and concealing $62 million in losses and $35 million in gains resulting from such trading on Alexander's books and records.  The complaint alleges that this caused Alexander to materially overstate its pretax income by as much as 103.9% in Alexander's first, second and third quarter 1994 and second and third quarter 1995 Forms 10-Q; and 17.8% in Alexander's 1994 and 1995 Forms 10-K.  It also caused Alexander to materially understate its pretax income by as much as 14% in Alexander's third quarter 1993 and second quarter 1996 Forms 10-Q.  The complaint further alleges that Mahon purchased many of these securities through Jupiter, a former registered representative of a registered broker-dealer, a registered municipal securities dealer, and their successors, in exchange for at least $190,000 in kickbacks Jupiter paid Mahon to induce Mahon to continue investing in the high-risk securities through Jupiter.  The complaint alleges Jupiter and Mahon concealed the kickback payments from Alexander and that Jupiter earned at least $14.3 million in commissions from the securities transactions Mahon executed through Jupiter.  
+
+  The Commission's complaint charges that Mahon violated Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 ("the Exchange Act") and Rules 10b-5 and 13b2-1 promulgated thereunder, and that Jupiter violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.  Judge Smalkin's order permanently enjoined Mahon from future violations of Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-1.  The Complaint also seeks an order of permanent injunction from future violations of the federal securities laws, disgorgement of ill-gotten gains, including prejudgment interest, and the imposition of civil penalties against Jupiter for his fraudulent acts.    
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1332.txt b/raw/aaer/2000/AAER-1332.txt
new file mode 100644
index 0000000000000000000000000000000000000000..4545c245cdac6522e3c4600224147b0c6da6b071
--- /dev/null
+++ b/raw/aaer/2000/AAER-1332.txt
@@ -0,0 +1,1513 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Engineering Animation, Inc. and Michael J. Jablo 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358861","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Engineering Animation, Inc. and Michael J. Jablo
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Engineering Animation, Inc. and Michael J. Jablo
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+  
+ Securities Exchange Act of 1934
+ Release No. 43416 / October 5, 2000
+
+  Administrative Proceeding
+ File No. 3-10343 
+
+   In the Matter of  
+		ENGINEERING ANIMATION, INC.  
+		and MICHAEL J. JABLO,  
+		Respondents.
+		 
+		  ORDER INSTITUTING PROCEEDINGS PURSUANT TO SECTION 21C THE SECURITIES EXCHANGE ACT OF 	1934, MAKING FINDINGS, AND IMPOSING A CEASE-AND-DESIST ORDER 
+	   I. 
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate   that public administrative proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Engineering Animation, Inc. ("EAI") and Michael J. Jablo ("Jablo").
+
+  II. 
+
+   In anticipation of the institution of these proceedings, EAI and Jablo have submitted Offers of Settlement that the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission, or in which the Commission is a party, and without admitting or denying the findings contained herein, except that Respondents admit the jurisdiction of the Commission over them and over the subject matter of this proceeding, EAI and Jablo consent to the entry of this Order Instituting Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order ("Order").  The Commission has determined that it is appropriate to accept the Offers of Settlement from EAI and Jablo, and accordingly is issuing this Order.
+
+  III. 
+
+    FACTS 
+
+      Based on the foregoing, the Commission finds that:
+
+  A.  Respondents 
+
+   Engineering Animation, Inc.  is a Delaware corporation with its headquarters in Ames, Iowa.  It provides mechanical engineering, manufacturing, and marketing software to manufacturing enterprises such as the automotive industry.  Its common stock is registered with the Commission pursuant to Section 12(g) of the Exchange Act and is listed on NASDAQ.
+
+   Michael J. Jablo , age 48, was EAI's vice president of software sales until his resignation on September 30, 1999.  He resides in the Chicago, Illinois area.
+
+    B. EAI Improperly Recognized Revenue During the Second Quarter 
+
+       ended June 30, 1999  
+
+    In the second quarter of 1999, EAI had anticipated closing a $7.5 million contract with an automotive supplier ("Customer").  This would have been EAI's largest contract to date.  However, by late June, the Customer had informed EAI that it would not be able to close the transaction by the end of the quarter.  EAI's vice president of software sales, Jablo, and another EAI sales employee then sought out a third party to act as a reseller in order to close the deal by June 30.  1    On June 30, 1999, the reseller signed a contract ("Contract") with EAI.  Pursuant to the Contract, the reseller agreed to purchase the software from EAI and to pay $7.5 million by September 30, 1999.   In connection with the Contract, however, Jablo, on EAI's behalf, gave the reseller a side letter which provided that the reseller was not obligated to pay EAI unless the Customer purchased the software from the reseller.  Jablo then transmitted the Contract, without disclosure of the side letter, to the company's accounting department, which shipped the software and made entries in EAI's books and records to recognize the revenue for that quarter.
+
+    In late September 1999, while preparing to close EAI's third quarter books, EAI's management asked Jablo about the status of the payment due under the Contract.  At that time, Jablo told management about the existence of the side letter.  He also informed management that, because the Customer still had not purchased the software from the reseller, the reseller's $7.5 million payment would not be made by the end of the third quarter.
+
+    Thereafter, EAI restated its second quarter results, reversing the $7.5 million in revenue that it had recognized for the transaction.  As a result, EAI reported a loss of $4.4 million instead of its previously stated profit of $2.2 million for its second quarter of 1999.
+
+  IV. 
+
+    LEGAL ANALYSIS 
+
+  1.  Violations by EAI 
+
+  Section 13(a) of the Exchange Act and Rule 13a-13 thereunder require all issuers whose securities are registered with the Commission pursuant to Section 12 of the Exchange Act to file quarterly reports with the Commission.  Information contained in such reports must be accurate and complete.  Further, Rule 12b-20 of the Exchange Act requires that all reports filed pursuant to Section 13 contain all information necessary to ensure that the statements made are not materially misleading.  The financial information contained in these periodic reports must conform with Regulation S-X, which generally requires conformity with generally accepted accounting principles ("GAAP").  2    EAI violated Section 13(a) of the Exchange Act and Rules 13a-13 and 12b-20 thereunder by filing a quarterly report on Form 10-Q for the quarter ended June 30, 1999 that contained materially false and misleading financial statements.  Because the Contract was contingent upon the resale of the software to a third party, the fee was not fixed and determinable, and collectibility was not probable, on the date the Contract was signed.  As a result, EAI failed to comply with GAAP when it recognized $7.5 million of revenue on this transaction during the second quarter of fiscal 1999.
+
+    Section 13(b)(2)(A) of the Exchange Act requires issuers to make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the issuer.  EAI violated Section 13(b)(2)(A) by maintaining books and records which reflected revenue and income from a sales transaction that failed to comply with the GAAP standards for revenue recognition.
+
+    Section 13(b)(2)(B) of the Exchange Act requires every reporting company to devise and maintain a system of internal controls sufficient to provide reasonable assurances that transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP.  EAI violated Section 13(b)(2)(B) by failing to have adequate procedures to, among other things, verify that all material contingencies are satisfied prior to the recognition of revenue on each software transaction.
+
+    2.  Violations by Jablo  
+
+  Section 10(b) of the Exchange Act and Rule 10b-5 thereunder proscribe making materially false and misleading statements in connection with the purchase or sale of any security.  Section 13(b)(5) of the Exchange Act generally prohibits any person from knowingly circumventing a company's internal accounting controls or knowingly falsifying any company book, record, or account.  Rule 13b2-1 of the Exchange Act makes it unlawful for any person to falsify, or cause to be falsified, any book, record or account of a publicly traded company.
+
+  As described above, Jablo caused EAI's financial statements for the second quarter of fiscal 1999 to be materially misstated.  In particular, Jablo entered into and did not disclose the existence of a side letter with the Reseller in connection with the Contract.  He knew that the letter contained contingencies that made it inappropriate under GAAP for EAI to recognize the $7.5 million contract amount as revenue during the second quarter of fiscal 1999.  In addition, he knew that the large dollar value of the Contract would have a material impact on EAI's reported revenue and net income for that quarter.  As a result, Jablo violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder.  Jablo violated Section 13(b)(5) of the Exchange Act and Exchange Act Rule 13b2-1 by knowingly concealing the side letter, which resulted in material misstatements of EAI's books and records and the circumvention of the company's internal accounting controls.
+
+    V. 
+
+    FINDINGS 
+
+    Based on the above, the Commission finds that:
+
+    A. EAI violated Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 13a-13 and 12b-20 thereunder; and
+
+    B. Jablo violated Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-1 thereunder.
+
+  VI. 
+
+    ORDER 
+
+    Accordingly, IT IS HEREBY ORDERED, pursuant to Section 21C of the Exchange Act, that:
+
+    A. EAI cease and desist from committing or causing any violation, and committing or causing any future violation, of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 13a-13 and 12b-20 thereunder; and 
+
+    B. Jablo cease and desist from committing or causing any violation, and committing or causing any future violation, of Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-1 thereunder. 
+
+By the Commission.  
+
+Jonathan G. Katz 
+Secretary
+
+  Footnotes 
+
+   1     In this context, the term "reseller" refers to a third party that purchases a product, with inventory risk, to resell the product to another third party.  Unlike EAI's prior dealings with resellers, where the resellers used EAI's products in connection with other products and/or services that they were furnishing to their customers, the third party reseller in this case was not adding any other products or services to EAI's software. 
+
+    2    GAAP requires the following for the recognition of revenue from the sale of software: (a) persuasive evidence of an arrangement exists; (b) delivery has occurred; (c) the vendor's fee is fixed or determinable; and (d) collectibility is probable .   SOP No. 97-2.  Under GAAP, revenue from a sale to a reseller, whereby the reseller is only obligated to pay if sales are then made to end-users, may only be recognized when sales are ultimately made to end-users.  SOP No. 97-2.
+
+
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1333.txt b/raw/aaer/2000/AAER-1333.txt
new file mode 100644
index 0000000000000000000000000000000000000000..9abb5c09e23f9f86eeadea62ce2006ebae9e1edb
--- /dev/null
+++ b/raw/aaer/2000/AAER-1333.txt
@@ -0,0 +1,1362 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Michael J. Jablo 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484276","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Michael J. Jablo
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Michael J. Jablo
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+
+  LITIGATION RELEASE NO.  16753  / October 5, 2000
+
+  SEC V. MICHAEL J. JABLO, U.S.D.C. for the District of Columbia, Civ. Action No. 1:00CV02401     
+
+   SEC SETTLES FINANCIAL FRAUD CASE AGAINST MICHAEL J. JABLO 
+
+  The Commission today announced the filing of a Complaint in the U.S. District Court for the District of Columbia against Michael J. Jablo seeking a civil money penalty relating to his role in improper recognition of revenue at Engineering Animation, Inc. ("EAI") during EAI's second fiscal quarter ended June 30, 1999.  Jablo, without admitting or denying the allegations in the Commission Complaint, consented to the entry of a judgment by the U.S. District Court for the District of Columbia against him ordering him to pay a $15,000 civil money penalty in this matter.
+
+  The Commission's Complaint alleged that, in its second quarter of 1999, EAI reported $27,227,000 in revenues that included a June 30, 1999 contract for $7.5 million with a reseller.  The Complaint alleged that in connection with this contract, EAI's vice president of software sales, Jablo, entered into a side letter with the reseller, whereby the reseller was not obligated to pay EAI unless an end-user agreed to purchase the software from it.  The Complaint further alleged that Jablo concealed this side letter from others at EAI until late September 1999.  According to the Complaint, EAI thereafter restated its second quarter results with EAI then reporting a loss of $4.4 million, instead of its previously stated profit of $2.2 million.  
+
+  In a related matter, the Commission entered a cease-and-desist order instituting proceedings pursuant to Section 21C of the Securities Exchange Act of 1934, making findings, and imposing a cease-and-desist order against EAI and Michael J. Jablo.  In that proceeding, the Commission simultaneously accepted Offers of Settlement from EAI and Jablo.  EAI, without admitting or denying the Commission's findings, consented to the entry of the Order which required it to cease and desist from committing or causing violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 13a-13 and 12b-20 thereunder.  Jablo, without admitting or denying the Commission's findings, consented to the entry of the Order which required him to cease and desist from committing or causing violations of Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-1 thereunder.
+  
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1334.txt b/raw/aaer/2000/AAER-1334.txt
new file mode 100644
index 0000000000000000000000000000000000000000..d1e8a40d85c0206c62a87cfb7d439a966afd9df7
--- /dev/null
+++ b/raw/aaer/2000/AAER-1334.txt
@@ -0,0 +1,1482 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Victor Douenias 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358816","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Victor Douenias
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Victor Douenias
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No. 43445 / October 16, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1334 / October 16, 2000
+
+  Administrative Proceeding
+ File No.  3-10347 
+
+   In the Matter of  
+		VICTOR DOUENIAS,  
+		Respondent.
+		 
+		 ORDER INSTITUTING CEASE-AND-DESIST PROCEEDINGS PURSUANT TO SECTION 21C OF THE 	SECURITIES EXCHANGE ACT OF 1934 AND FINDINGS AND ORDER OF THE COMMISSION 
+	   I. 
+
+   The Commission deems it appropriate that public administrative proceedings be, and they hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Victor Douenias ("Douenias" or "Respondent").
+
+  II. 
+
+   In anticipation of the institution of these proceedings, Respondent has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of these proceedings and any other proceeding brought by or on behalf of the Commission or to which the Commission is a party, Respondent, without admitting or denying the matters set forth herein, except that he admits to the jurisdiction of the Commission over him and the matters set forth herein, consents to the issuance and entry of this Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934 and Findings and Order of the Commission ("Order"). 
+
+  III. 
+
+   On the basis of this Order and Respondent's Offer, the Commission finds the following:
+
+    A. Respondent
+
+    Respondent was formerly the shipping manager for The Simone Group, Inc. ("Simone").  He left Simone in 1993.
+
+    B. The Issuer
+
+    Simone was a Delaware corporation located in Moonachie, New Jersey that was engaged in the shoe and handbag business.  Simone's common stock was traded on NASDAQ until July 16, 1990, when its common stock was delisted.  Simone was required to file annual and quarterly reports with the Commission pursuant to Section 13(a) of the Exchange Act.  On July 21, 1993, Simone filed for Chapter 11 Bankruptcy protection.  In January 1995, the Bankruptcy court approved Simone's agreement to sell certain assets.  Upon the completion of this transaction, Simone ceased operations.   
+
+    C. Facts
+
+    Respondent, during the fiscal year ended January 31, 1993 created invoices for goods that had not yet been shipped to Simone's customers.  Such invoices were compiled on the company's daily sales register, which was submitted to a lender.  Respondent maintained these invoices in a file separate from the invoices that were generated upon shipment to Simone's customers.
+
+    As a result of the respondent's actions, Simone's general ledger on a daily basis reflected sales which had not been shipped as of that date, and for which revenue should not have been booked.  The prematurely booked sales were never included in publicly reported financial results, due to the discovery by Simone's independent auditors of discrepancies in the company's financial records in April 1993.              
+
+  IV.
+
+    OPINION
+
+    Section 13(b)(5) of the Exchange Act prohibits the knowing circumvention or failure to implement a system of internal accounting controls.  Rule 13b2-1 under the Exchange Act prohibits the direct or indirect falsification of, or causing to be falsified, any book, record or account that issuers are required to maintain pursuant to the Exchange Act.  By forwarding premature invoices which were compiled as part of the daily sales register, respondent violated Section 13(b)(5) of the Exchange Act and Rule 13b2-1.
+
+  V.
+
+    The Commission finds that Respondent violated Section 13(b)(5) of the Exchange Act and Rule 13b2-1 thereunder.
+
+  VI.
+
+    ORDER
+
+    Accordingly, IT IS HEREBY ORDERED, pursuant to Section 21C of the Exchange Act, that Respondent cease and desist from committing or causing any violation of, and committing or causing any future violation of Section 13(b)(5) of the Exchange Act and Rule 13b2-1 thereunder. 
+
+By the Commission.
+
+ Jonathan G. Katz 
+Secretary 
+
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1335.txt b/raw/aaer/2000/AAER-1335.txt
new file mode 100644
index 0000000000000000000000000000000000000000..4536e98cb2a5e9a19e5fd3fa2271ec3f2febf50d
--- /dev/null
+++ b/raw/aaer/2000/AAER-1335.txt
@@ -0,0 +1,1363 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Jacob Adoni and Victor Douenias 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484346","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Jacob Adoni and Victor Douenias
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Jacob Adoni and Victor Douenias
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+               UNITED STATES SEURITIES AND EXCHANGE COMMISSION  
+
+ Litigation Release No.  16767 / October 16, 2000 
+
+ Accounting and Auditing Enforcement
+  Release No.  1335 / October 16, 2000 
+
+ SECURITIES AND EXCHANGE COMMISSION v. JACOB ADONI AND VICTOR DOUENIAS, Case No. 97-350 (JAG)(D.N.J.) 
+
+ The Securities and Exhange Commission today announced the settlement of a federal court action pending since 1997, against Victor Douenias, former shipping manager for The Simone Group, Inc. (Simone), then a NASDAQ shoe manufacturer.   
+
+ In its complaint, the Commission alleged that Douenias maintained invoices for goods that had not been shipped to customers in a separate file, thus circumventing Simone's internal accounting controls and leading, directly or indirectly, to the falsification of Simone's books and records.  Without admitting or denying the allegations of the Commission's complaint, Douenias has agreed to pay $5,000 pursuant to Section 21(d)(3) of the Securities Exchange Act of 1934 (Exchange Act).    
+
+ At the same time, the Commission issued a settled order pursuant to Section 21C of the Exchange Act against Douenias, requiring him to cease and desist from committing or causing any violations or future violations of Section 13(b)(5) of the Exchange Act and Rule 13b2-1 thereunder.  (See Exchange Act Release No. 34-43445/AAER No.1334 ). 
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1337.txt b/raw/aaer/2000/AAER-1337.txt
new file mode 100644
index 0000000000000000000000000000000000000000..be8c86f6ac7f4b388ce3da696486fbbda5d39107
--- /dev/null
+++ b/raw/aaer/2000/AAER-1337.txt
@@ -0,0 +1,1366 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Solucorp Industries LTD.; Joseph S. Kemprowski; Peter R. Mantia; James G. Spartz; Robert Kuhn; Victor Herman; Arle Pierro; W. Bryan Fair; and Glenn R. Ohlhauser 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484436","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Solucorp Industries LTD.; Joseph S. Kemprowski; Peter R. Mantia; James G. Spartz; Robert Kuhn; Victor Herman; Arle Pierro; W. Bryan Fair; and Glenn R. Ohlhauser
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Solucorp Industries LTD.; Joseph S. Kemprowski; Peter R. Mantia; James G. Spartz; Robert Kuhn; Victor Herman; Arle Pierro; W. Bryan Fair; and Glenn R. Ohlhauser
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+
+ Washington, D.C. 
+
+ Litigation Release No . 16785 / October 31, 2000 
+
+ Accounting and Auditing Enforcement Release No. 1337 / October 31, 2000 
+
+ SECURITIES AND EXCHANGE COMMISSION V. SOLUCORP INDUSTRIES LTD.; JOSEPH S. KEMPROWSKI; PETER R. MANTIA; JAMES G. SPARTZ; ROBERT KUHN; VICTOR HERMAN; ARLE PIERRO; W. BRYAN FAIR; AND GLENN R. OHLHAUSER, 99 Civ. 11965 (WCC) (SDNY) (December 13, 1999) 
+
+  SEC SUES SOLUCORP INDUSTRIES LTD.'S AUDITOR IN PENDING CIVIL ACTION FOR VIOLATING SECTION 10A  
+
+   On October 31, 2000, the Commission filed an Amended Complaint in the above-mentioned action.  The Amended Complaint adds Glenn R. Ohlhauser ("Ohlhauser"), a Chartered Accountant with the Canadian accounting firm MacKay & Partners, as a defendant for failing to take appropriate action on discovering possible illegal conduct during an audit of Solucorp Industries Ltd.'s financial statements in 1998, in violation of Section 10A of the Securities Exchange Act of 1934.  The action is the first civil injunctive action brought by the Commission against an auditor for violating Section 10A, which imposes on auditors certain obligations upon discovering possible illegal conduct.    
+
+ The illegal conduct at issue is Solucorp management's backdating of a license agreement in order to cover-up Solucorp's improper recognition during the quarter ended September 15, 1997 of $500,000 in license fees, or 40% of its revenues.  The Commission's Complaint filed December 13, 1999 alleges that Solucorp recognized the revenue notwithstanding that as of September 30, 1997, Solucorp did not have a final licensing agreement but only an agreement in principle to enter into a licensing agreement.  ( See  Lit. Rel. No. 16388/December 13, 1999)  The Complaint further alleges that the parties did not finalize the terms of their license agreement until on or after November 9, 1997, and did not memorialize their agreement in writing until on or after December 18, 1997.  On executing the agreement on or about December 30, 1997, the Complaint alleges that Mantia directed that the effective and signature dates be backdated to September 15, 1997, which they were.     
+
+ The Commission has amended the Complaint to allege that when Solucorp gave MacKay a copy of the September 15, 1997 agreement during MacKay's audit of the financial statements for the period ended December 31, 1997, Ohlhauser reasonably concluded that the agreement appeared to have been backdated for improper accounting purposes.  Having concluded that Solucorp may have backdated the license agreement for suspect purposes, Ohlhauser should have, but did not comply with the provisions of Section 10A requiring him to take the following steps in accordance with Generally Accepted Auditing Standards ("GAAS"): (1) determine whether it was likely that Solucorp committed an illegal act by backdating the agreement; (2) determine the possible effect of the illegal act on Solucorp's financial statements for the six-month transition period ended December 31, 1997, including the contingent monetary effect of penalties, fines and damages; and (3) inform the appropriate level of Solucorp's management and assure that Solucorp's audit committee was adequately informed about the illegal act.    
+
+  
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1338.txt b/raw/aaer/2000/AAER-1338.txt
new file mode 100644
index 0000000000000000000000000000000000000000..c439af4814e74f717dde649823c21d214a67a49c
--- /dev/null
+++ b/raw/aaer/2000/AAER-1338.txt
@@ -0,0 +1,1444 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Pat A. Rossetti and Jeffrey M. Yonkers 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358776","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Pat A. Rossetti and Jeffrey M. Yonkers
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Pat A. Rossetti and Jeffrey M. Yonkers
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934 
+
+ RELEASE NO.  43497 / October 31, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT 
+
+ RELEASE NO.  1338 / October 31, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+
+ File No.  3-10354 
+
+ IN THE MATTER OF PAT A. ROSSETTI AND JEFFREY M. YONKERS  
+
+   Administrative and cease and desist proceedings have been instituted pursuant to Section 21C of the Securities Exchange Act of 1934 and Rule 102(e) of the Commission's Rules of Practice against Pat A. Rossetti ("Rossetti") and Jeffrey M. Yonkers ("Yonkers"). 
+
+   The Order Instituting Proceedings alleges that Rossetti and Yonkers violated Section 10A of the Securities Exchange Act of 1934 ("Exchange Act"), willfully aided and abetted violations of Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder, and engaged in improper professional conduct.   
+
+   It is alleged that Rossetti and Yonkers, while employed as CPAs with the firm of Marcum & Kliegman, LLC, learned that the firm's client, Detour Magazine, Inc., was preparing its quarterly financial statements using simple fractions of numbers from existing financial statements, rather than actual results of Detour's operations for those quarters and filing those financial statements with the Commission in Forms 10-QSB.  It is alleged that despite this discovery, Rossetti and Yonkers failed to notify the company's management, board of directors or the Commission itself of this illegal act, and that Detour continued to use fractions in its quarterly financial statements throughout 1997 and 1998.    
+
+   It is also alleged that, in the course of their audit of Detour's annual financial statements for 1997 and 1998, Rossetti and Yonkers failed to properly record, or require Detour to record, an expense related to certain options the company issued to consultants in 1997.  It is alleged that these options were issued at a price far below the stock's fair value at the time.  The failure of Rossetti and Yonkers to record the appropriate expense item in connection with the options transaction allegedly caused the financial statements of Detour, as contained in its filings with the Commission during 1997 and 1998, to materially misrepresent the company's financial condition and results of operations.  
+
+   A hearing before an administrative law judge will be scheduled to determine whether the allegations against Rossetti and Yonkers are true and to determine, what sanctions, if any, are appropriate in the public interest with respect to those respondents. 
+
+  
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1339.txt b/raw/aaer/2000/AAER-1339.txt
new file mode 100644
index 0000000000000000000000000000000000000000..ed878dbd181e3b480157b88ea96e6295a5ffc34e
--- /dev/null
+++ b/raw/aaer/2000/AAER-1339.txt
@@ -0,0 +1,1444 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Horton & Company and Edward C. Horton 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358771","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Horton & Company and Edward C. Horton
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Horton & Company and Edward C. Horton
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934 
+
+ RELEASE NO. 43498 / October 31, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+
+ RELEASE NO.  1339 / October 31, 2000 
+
+ ADMINISTRATIVE PROCEEDING NO. 3-10355 
+
+ IN THE MATTER OF HORTON & COMPANY AND EDWARD C. HORTON  
+
+   Proceedings pursuant to Rule 102(e) of the Commission's Rules of Practice have been instituted against Horton & Company and Edward C. Horton ("Horton").   
+
+   The Order Instituting Proceedings alleges that Horton & Company and Horton
+
+have each willfully aided and abetted violations of Section 13(a) of the Securities Exchange Act of 1934 and Rules 13a-1 and 13a-13 thereunder, and have engaged in improper professional conduct.   
+
+   It is alleged that Horton & Company, and its managing partner Edward C. Horton, while the audit firm was engaged as the auditor for Monarch Investment Properties, Inc., failed to properly record, or require Monarch to record, an expense related to certain options Monarch issued to consultants in 1997.  It is alleged that these options were issued at a price far below the stock's fair value at the time.  The failure of Horton and his audit firm to record the appropriate expense item in connection with the options transaction allegedly caused the financial statements of Monarch, as contained in its filings with the Commission during 1997 and 1998, to materially misrepresent the company's financial condition and results of operations.   
+
+   It is also alleged that Horton & Company and Horton lacked independence with respect to Monarch.  During the time Monarch was a client of Horton & Company, the audit firm's staff accountant allegedly made all the bookkeeping entries for Monarch, using raw data such as check stubs and bank statements.  Horton & Company thereafter audited the resulting financial statements.   
+
+   A hearing before an administrative law judge will be scheduled to determine whether the allegations against Horton & Company and Edward C. Horton are true and to determine, what sanctions, if any, are appropriate in the public interest with respect to those respondents. 
+
+  
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1340.txt b/raw/aaer/2000/AAER-1340.txt
new file mode 100644
index 0000000000000000000000000000000000000000..ff447f50d79bbe7f444bb31ee6ed065f74327cb1
--- /dev/null
+++ b/raw/aaer/2000/AAER-1340.txt
@@ -0,0 +1,1376 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Aviation Distributors, Inc., Osamah S. Bakhit, and James J. Goulet 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484471","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Aviation Distributors, Inc., Osamah S. Bakhit, and James J. Goulet
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Aviation Distributors, Inc., Osamah S. Bakhit, and James J. Goulet
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+               UNITED STATES SECURITIES AND EXCHANGE COMMISSION  
+
+ Litigation Release No. 16792 / November 8, 2000 
+ 
+  Accounting and Auditing Enforcement Release No. 1340 / November 8, 2000              
+
+ Securities and Exchange Commission v. Aviation Distributors, Inc., Osamah S. Bakhit, and James J. Goulet, Civil Action No. SACV 00-1089 DOC (EEx) (C.D. Cal.) 
+
+ SEC CHARGES SOUTHERN CALIFORNIA COMPANY AND FORMER 
+
+PRESIDENT AND CEO WITH ACCOUNTING FRAUD 
+
+   The Securities and Exchange Commission ("Commission") yesterday charged Aviation Distributors, Inc. ("ADI"), an airline parts distribution company headquartered in Lake Forest, California, and Osamah S. Bakhit, ADI's founder and former President, Chief Executive Officer, and Chairman, with accounting fraud.  Also named in the Commission's Complaint is James Goulet, ADI's Director of Quality Control.  The Complaint alleges that the three defendants engaged in a scheme to overstate ADI's financial results, which caused the registration statement filed in connection with the company's March 3, 1997 initial public offering, as well as two subsequent quarterly reports, to be materially false and misleading. 
+
+ The Complaint, which was filed in the United States District Court for the Central District of California, alleges that during fiscal years 1995 and 1996, and portions of 1997, ADI routinely recognized revenue in one reporting period on goods that were not shipped until subsequent periods; recognized revenue on goods that were never shipped; created false "inventory exchanges" to offset outstanding receivables; and altered invoices submitted to its bank for financing.  ADI engaged in these practices in order to brighten its financial picture and to obtain vital bank financing.  As a result of its fraudulent practices, ADI filed with the Commission and disseminated to the public a materially false and misleading registration statement and two Forms 10-QSB that misstated ADI's financial results.  In its financial statement for 1996, which was included in the company's registration statement, ADI fraudulently overstated its reported income by approximately 488 percent, overstating its revenues by approximately $788,358 and understating its expenses by approximately $319,500.  Thus, ADI reported pre-tax net income of $227,155 for 1996 when it should have shown a loss of over $800,000.  ADI's registration statement and quarterly reports also falsely stated that the company was in compliance with the terms of its lines of credit. 
+
+   The Complaint alleges that this fraudulent scheme was orchestrated and implemented by Bakhit, ADI's former President, CEO, and Chairman, who is currently a sales and marketing consultant for the company, as well as the company's largest shareholder.  Bakhit directed ADI employees to recognize revenue fraudulently on out-of-period sales and fictitious transactions; falsify ADI's books and records; and submit false documents to ADI's bank.  Bakhit signed both the registration statement and quarterly reports when he knew, or was reckless in not knowing, that these documents contained materially false and misleading information.  Bakhit also made false statements to ADI's former independent auditor in order to conceal this fraudulent scheme. 
+
+   In its Complaint, the Commission charges Bakhit with:  violating the antifraud provisions of the federal securities laws, Section 17(a) of the Securities Act of 1933 ("Securities Act") and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule  
+
+ 10b-5 thereunder; falsifying ADI's books and records, Section 13(b)(5) of the Exchange Act and Exchange Act Rule 13b2-1; making false statements to ADI's former independent auditor, Exchange Act Rule 13b2-2; aiding and abetting ADI's filing of false and misleading quarterly reports, Sections 13(a) of the Exchange Act and Rules 12b-20 and 13a-13 thereunder; and aiding and abetting ADI's books and records and internal accounting control violations, Sections 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act.  The Complaint seeks an injunction against Bakhit for future violations, a civil monetary penalty, and an order prohibiting him from serving as an officer or director of any public company. 
+
+   The Commission's Complaint alleges that Goulet falsified ADI's books and records and aided and abetted violations of the antifraud provisions.  At Bakhit's direction, Goulet performed many of the day-to-day tasks necessary to carry out the fraudulent scheme, including creating false invoices, purchase orders, and shipping documents.   
+
+   ADI and Goulet have agreed to settle the charges brought against them without admitting or denying the allegations set forth in the Complaint.  ADI consented to the entry of a final judgment permanently enjoining it from future violations of Section 17(a) of the Securities Act and Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20, and 13a-13 thereunder.  Goulet consented to the entry of a final judgment permanently enjoining him from future violations of Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5 and 13b2-1 thereunder.  The proposed final judgment for Goulet does not impose a civil monetary penalty based upon his sworn representations concerning his financial condition. 
+
+   Also today, the United States Attorney's Office for the Central District of California is announcing related criminal charges against the three defendants. 
+
+  
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1342.txt b/raw/aaer/2000/AAER-1342.txt
new file mode 100644
index 0000000000000000000000000000000000000000..36d1a0652e2a1913c6516ce6375bf46737bb3a4b
--- /dev/null
+++ b/raw/aaer/2000/AAER-1342.txt
@@ -0,0 +1,1490 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Donald E. Studer 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358756","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Donald E. Studer
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Donald E. Studer
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  43532 / November 8, 2000   
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.   1342 / November 8, 2000   
+
+ ADMINISTRATIVE PROCEEDING
+ File No. 3-10358 
+
+   In the Matter of  
+		DONALD E. STUDER,  
+		Respondent.
+		 
+		 ORDER INSTITUTING A PUBLIC ADMINISTRATIVE PROCEEDING PURSUANT TO RULE 102(e) OF THE 	COMMISSION'S RULES OF PRACTICE, MAKING FINDINGS, AND IMPOSING SANCTIONS 
+	    I.   
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate that a public administrative proceeding be and hereby is instituted pursuant to Rule 102(e)(3)(i)(A)  1   of the Commission's Rules of Practice against Respondent Donald E. Studer ("Studer"). 
+
+  II.   
+
+   In anticipation of the institution of this proceeding, Studer has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of this proceeding and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings contained herein, except that Studer admits the jurisdiction of the Commission over him and over the subject matter of this proceeding, and that a Judgment of Permanent Injunction and Other Relief as set forth in paragraph III.C. has been entered against him, Studer consents to the entry of this Order Instituting a Public Administrative Proceeding Pursuant to Rule 102(e) of the Commission's Rules of Practice, Making Findings, and Imposing Sanctions ("Order") as set forth below. 
+
+   Accordingly,  IT IS HEREBY ORDERED  that a proceeding pursuant to Rule 102(e)(3)(i)(A) be, and hereby is, instituted. 
+
+  III.   
+
+   On the basis of this Order and the Offer of Settlement submitted by Studer, the Commission finds that:  2   
+
+    A. RESPONDENT  
+
+   Donald E. Studer, age 69, resides in West Monroe, Louisiana.  Studer has served as a Director and corporate counsel for Countryland Wellness Resorts, Inc. ("Countryland") since 1984.  Studer maintains licenses to practice law in California and Louisiana. 
+
+  B. RELATED PARTY  
+
+ Countryland (formerly Continental Wellness Casinos, Inc.), most recently incorporated in Delaware in 1999, maintains its offices in Las Vegas, Nevada.  Countryland claims to be engaged in the mining and electrical contracting industries, and plans to operate a longevity center at a wellness resort and casino in Las Vegas, Nevada.  Countryland's stock is registered with the Commission pursuant to Section 12(b) of the Securities Exchange Act of 1934 ("Exchange Act").   
+
+  C. FACTS  
+
+ On September 26, 2000, the Commission filed a complaint against Studer and others in SEC v. Countryland Wellness Resorts, Inc., Fred Cruz (a.k.a. Federico Cruz Gonzalez), Luis R. Hidalgo, Jr., and Donald E. Studer, CV-S-00-1160-PMP-RJJ (D. Nev.) (the "Complaint").  On September 29, 2000, the United States District Court for the District of Nevada entered a Judgment of Permanent Injunction and Other Relief Against Defendant Donald E. Studer ("Judgment"), which, among other things: (1) permanently enjoins Studer from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder; and (2) does not assess a civil penalty based on Studer's demonstrated inability to pay.  Studer consented to the entry of the injunction without admitting or denying any of the allegations in the Complaint.  
+
+ The Commission's Complaint, among other things, alleges that: (1) Countryland filed a registration statement in June 1999 and four amended registration statements in November and December 1999 that contained unauthorized audit reports for the company's financial statements; and (2) Studer knew or was reckless in not knowing that Countryland's auditor had not authorized Countryland to use the audit reports in these registration statements.
+
+
+
+   IV.   
+
+   Studer has submitted an Offer of Settlement in which, without admitting or denying the findings herein, he consents to the Commission's entry of this Order, which:  (1) makes findings, as set forth above; and (2) suspends Studer from appearing or practicing before the Commission.  As set forth in Studer's Offer of Settlement, Studer undertakes to cooperate with Commission staff in preparing for and presenting any civil litigation or administrative proceedings concerning any transaction that is the subject of this Order. 
+
+  V.   
+
+   In view of the foregoing, the Commission deems it appropriate to accept the Offer of Settlement submitted by Studer. 
+
+   Accordingly,  IT IS HEREBY ORDERED , pursuant to Rule 102(e)(3)(i)(A) of the Commission's Rules of Practice, effective immediately, that: 
+
+ A. Studer is suspended from appearing or practicing before the Commission as an attorney. 
+
+ B. Studer shall comply with his undertaking described in Section IV. above. 
+
+By the Commission.
+
+ Jonathan G. Katz
+ Secretary 
+
+  Footnotes 
+
+   1     Rule 102(e)(3)(i) provides, in pertinent part, that "the Commission, with due regard to the public interest and without preliminary hearing, may, by order, . . . suspend from appearing or practicing before it any . . . attorney . . . who has been by name permanently enjoined by any court of competent jurisdiction, by reason of his or her misconduct in an action brought by the Commission, from violating or aiding and abetting the violation of any provision of the Federal securities laws or of the rules and regulations thereunder." 
+
+   2    The findings herein are made pursuant to the Offer of Settlement of Donald E. Studer and are not binding on any other person or entity in this or any other proceeding. 
+
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1343.txt b/raw/aaer/2000/AAER-1343.txt
new file mode 100644
index 0000000000000000000000000000000000000000..c1a7e4ccde401255e554d3cc08648cdd2e981a7b
--- /dev/null
+++ b/raw/aaer/2000/AAER-1343.txt
@@ -0,0 +1,1536 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Per-Se Technologies, Inc., formerly known as Medaphis Corporation 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358736","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Per-Se Technologies, Inc., formerly known as Medaphis Corporation
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Per-Se Technologies, Inc., formerly known as Medaphis Corporation
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  43570 / November 16, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1343 / November 16, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No. 3-10364 
+
+   In the Matter of 
+		 PER-SE TECHNOLOGIES, INC.,
+		  Respondent.
+		  
+		 ORDER INSTITUTING PUBLIC PROCEEDINGS PURSUANT TO SECTION 21C OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS AND IMPOSING CEASE-AND-DESIST ORDER 
+	   
+
+I.
+
+    The Securities and Exchange Commission ("Commission") deems it appropriate that public administrative proceedings be instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Per-Se Technologies, Inc., formerly known as Medaphis Corporation, (hereinafter referred to as "Medaphis" or "Per-Se"). 
+
+   In anticipation of the institution of these proceedings, Per-Se has submitted an Offer of Settlement, which Offer the Commission has determined to accept.  Solely for the purpose of these proceedings and any other proceeding brought by or on behalf of the Commission, or in which the Commission is a party, Per-Se, by its Offer of Settlement, admits the jurisdiction of the Commission over it and the subject matter of these administrative proceedings and consents to the entry of this Order Instituting Public Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings and Imposing Cease-and-Desist Order ("Order"), without admitting or denying the Commission's findings, except as for those contained in paragraph III.A. below, which are admitted. 
+
+II.
+
+   Accordingly, IT IS HEREBY ORDERED THAT proceedings pursuant to Section 21C of the Exchange Act be, and hereby are, instituted. 
+
+III.
+
+   On the basis of this Order and the Offer of Settlement by Per-Se, the Commission makes the following findings  1  : 
+
+ BACKGROUND 
+
+ A. During all relevant times, Medaphis Corporation ("Medaphis" or the "Company") was an Atlanta-based supplier of business management services to physicians and hospitals.  The Company's securities were registered with the Commission pursuant to Section 12(g) of the Exchange Act.  Medaphis changed its name to Per-Se in August 1999. 
+
+MEDAPHIS DEPARTED FROM GENERALLY ACCEPTED ACCOUNTING
+
+ PRINCIPLES THROUGH THE IMPROPER RECOGNITION OF REVENUE IN 1995
+
+ B. In late 1995, a wholly-owned Medaphis subsidiary and a German company agreed to form a joint venture to market the subsidiary's products and services to clients in Europe.  The licensing agreement between the two companies was executed in December 1995, although the joint venture was not actually formed until the following year. 
+
+ C. Upon execution of the licensing agreement, the German company delivered a note for $3.5 million to the subsidiary for the use of its software.  Medaphis, through the subsidiary, recognized this amount as revenue in the fourth quarter of 1995.   
+
+ D. In January 1996, an officer of the Medaphis subsidiary sent a letter to the head of the German partner in the joint venture which stated that the subsidiary would not ask its German partner to actually pay the $3.5 million until the joint venture between the two companies had produced profits sufficient to cover this amount.  The letter also stated that the subsidiary would waive any interest payments due on the $3.5 million.   
+
+ E. This letter materially varied the terms of the payment due to the subsidiary, and thus Medaphis, under the licensing agreement.  The terms of the payment created a contingency for the fee payable that, under generally accepted accounting principles ("GAAP"), precluded recognition of the license fee revenue until the contingency was removed.  Therefore, the Company's recognition of $3.5 million of revenue from the joint venture in the fourth quarter of 1995 was improper. 
+
+MEDAPHIS DEPARTED FROM GAAP BY DIRECTING A SUBSIDIARY
+
+  TO IMPROPERLY REVERSE AN ACCRUAL FOR EMPLOYEE BONUSES 
+
+ F. In the first quarter of 1996, Medaphis directed a second wholly-owned subsidiary to reverse an accrual for vested employee bonuses of $1.4 million into income.  The effect of this directive was to decrease expenses and liabilities by this amount and increase income for the first quarter of 1996 on Medaphis' consolidated financial statements.   
+
+ G. The employee bonus plan at the second subsidiary was a deferred compensation arrangement with vested benefits, rather than one based on operating performance and management discretion.  The employees covered by this plan had already earned these bonuses from past services and their right to payment required no additional services.  Accrual for this liability was appropriate and Medaphis's directive to reverse it into income was a departure from GAAP. 
+
+MEDAPHIS DEPARTED FROM GAAP BY DIRECTING A SUBSIDIARY TO CREATE   UNJUSTIFIED RESERVES AND SUBSEQUENTLY REVERSE THEM INTO EARNINGS 
+
+ H. In the second quarter of 1996, Medaphis acquired an information technology provider and consulting firm based in Texas.  Before the completion of the acquisition, Medaphis directed the Texas firm to make entries that improperly reduced its income for the first quarter of 1996 by $2.5 million by decreasing revenues and increasing reserves.  There was no corresponding probable and reasonably estimable exposure to justify the establishment of this reserve.  In June 1996, Medaphis instructed the Texas firm, now a wholly-owned subsidiary, to reverse this $2.5 million reserve into income.   
+
+ I. After the initial instruction from Medaphis to establish the $2.5 million reserve, the accounting staff at the Texas firm began preparing two sets of financial statements, one for internal use and a second set for reporting to Medaphis.  The financial statements included in this second set of books became part of Medaphis' consolidated financial statements which were filed with the Commission and reported to shareholders. 
+
+ J. Since there were no probable and reasonably estimable exposures to justify the establishment of the $2.5 million reserve, this reserve was not booked in conformity with GAAP.  The improper reversal of this reserve into income at the Texas firm materially inflated Medaphis's earnings through consolidation in the second quarter of 1996. 
+
+MEDAPHIS DEPARTED FROM GAAP BY FAILING TO ACCRUE
+
+  FOR PROBABLE LOSSES ON SOFTWARE DEVELOPMENT CONTRACTS 
+
+ K. In the second quarter of 1996, Medaphis learned that the subsidiary that had entered into the Joint Venture as described above expected to incur additional costs to complete certain software development and consulting contracts.  Medaphis had already recognized as revenue all of the payments it expected to receive under these contracts, but now learned that the subsidiary, and Medaphis through consolidation, would in fact lose $1.4 million on these arrangements. 
+
+ L. Despite being aware by the end of the second quarter that these costs would be incurred, Medaphis departed from GAAP by failing to record the losses on its books and failing to establish any reserves for them.   As a result, Medaphis overstated the earnings from these contracts, and its revenue, during the second quarter by approximately $1.4 million. 
+
+ MEDAPHIS'S LACK OF SUFFICIENT INTERNAL CONTROLS 
+
+ M. During the quarter and year ended December 31, 1995, and the first and second quarters of 1996, Medaphis failed to have internal controls sufficient to ensure that its financial statements were prepared in conformity with GAAP.  Medaphis had no formal written corporate-wide accounting policies and procedures to ensure the application of consistent accounting practices throughout the Company.  Medaphis failed to keep accurate books and records.  Control weaknesses resulted in incorrect books and records and misleading financial statements reported by Medaphis in filings with the Commission.   
+
+ N. The Company had no policy requiring that all contracts and any modifications thereto be sent to the Company's corporate accounting department by operating units to ensure that transactions were correctly recorded.  The Company had no review process to ensure that reversals of accruals into income were proper and had appropriate supporting documentation.  Additionally, Medaphis did not have adequate procedures to determine and establish reserves for estimable expenses and probable losses.  Medaphis improperly established reserves at a subsidiary without probable and reasonably estimable exposures, later reversing them into income.  Medaphis failed to have adequate procedures to ensure the recording of reserves for probable losses on its software development contracts, even though it was aware that such losses were probable and should have been recorded.  
+
+MEDAPHIS' INACCURATE FILINGS WITH
+  THE COMMISSION AND LATER RESTATEMENTS 
+
+ O. On April 1, 1996, Medaphis filed its 1995 Form 10-K with the Commission, inaccurately reporting that it had earned net income of $2.4 million and $0.4 million for the fourth quarter and year ended December 31, 1995, respectively. 
+
+ P. On May 15, 1996, Medaphis filed its Form 10-Q for the first quarter of 1996, reporting net income for the quarter of $13.2 million, a figure which was misstated due to the inclusion of the bonus accrual which Medaphis had improperly reversed into income.   
+
+ Q. Medaphis filed its Form 10-Q for the second quarter of 1996 on August 14, 1996.  The net income figure of $3.3 million reported for this quarter was overstated due to the manipulation of reserves at a company Medaphis acquired during the second quarter and failure to accrue for probable losses on certain software development contracts at a subsidiary.  Additionally, Medaphis overstated its results for the first six months of 1996 in this Form 10-Q because the improper reversal of the bonus accrual in the first quarter of 1996 and the items noted above were included in its year-to-date results. 
+
+ R. The letter sent by an officer of the Medaphis subsidiary to its German partner in the Joint Venture (described above in paragraph III.D) was discovered in September 1996.  On October 22, 1996, Medaphis announced that, because of the discovery of the letter, it was restating its operating results.  It no longer recognized the $3.5 million as revenue and restated its results to report net losses for both the quarter and year ended December 31, 1995. 
+
+ S. In early 1997, Medaphis restated the operating results it had previously reported for each quarter of 1996.  The restatements of the first and second quarters of 1996 were to correct, among other items, the improper reversal into income of the employee bonus plan accrual, the improper reversal of reserves at the Texas firm and its failure to establish reserves for the probable losses on a subsidiary's software development contracts.  The restatement materially reduced the Company's net income for the first and second quarters and changed the net income reported for the second quarter of 1996 into a net loss.  
+
+ VIOLATIONS OF THE FEDERAL SECURITIES LAWS 
+
+ T. Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder require issuers of registered securities to file with the Commission annual and quarterly reports prepared in conformity with the requirements of the Commission's rules and regulations.  Courts have held that it is implicit in this requirement that the information provided be accurate and contain no material misrepresentations or omissions.   See ,  e.g .,  SEC v. Savoy Industries, Inc ., 587 F.2d 1149, 1165 (D.C. Cir. 1978),  cert. denied , 440 U.S. 913 (1979).  In addition, Exchange Act Rule 12b-20 requires that these periodic reports contain all information necessary to ensure that the statements made in them are not materially misleading.  No showing of scienter is necessary to establish a violation of Section 13(a).   Savoy Industries , 587 F.2d at 1167.  A violation occurs when a materially false statement is filed.   SEC v. Kalvex, Inc ., 425 F.Supp. 310, 316 (S.D.N.Y. 1975). 
+
+ U. Section 13(b)(2)(A) of the Exchange Act requires issuers of securities to make and keep books, records and accounts which accurately and fairly reflect their transactions and the dispositions of their assets.  Exchange Act Rule 13b2-1 prohibits any person from, directly or indirectly, falsifying or causing to be falsified any book, record or account subject to Section 13(b)(2)(A).   
+
+ V. Section 13(b)(2)(B) of the Exchange Act requires issuers to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that, among other things, transactions are executed in accordance with management's authorization and that transactions are recorded as necessary to permit the preparation of financial statements in conformity with GAAP and to maintain accountability for assets.   
+
+ W. By the acts and omissions alleged in paragraphs III.A through III.Q, Medaphis committed violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-13 and 13b2-1 thereunder.  Medaphis violated Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 by filing a Form 10-K for the year ended December 31, 1995, and Forms 10-Q for the first and second quarters of 1996 which contained materially misleading information regarding its financial performance.  Medaphis violated Section 13(b)(2)(A) of the Exchange Act by failing to keep books and records which accurately recorded its transactions and assets for the fourth quarter and year ended December 31, 1995, and the first and second quarters of 1996.  Medaphis also violated Rule 13b2-1 thereunder by causing its books and records to falsely record its transactions and revenue over this same period.  Finally, Medaphis violated Section 13(b)(2)(B) of the Exchange Act by failing to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that its transactions were executed in accordance with management's authorization and that its transactions were recorded as necessary to permit the preparation of financial statements in conformity with GAAP.   
+
+IV.
+
+ In view of the foregoing, the Commission deems it appropriate to accept Per-Se's Offer of Settlement. 
+
+ ACCORDINGLY, IT IS HEREBY ORDERED, pursuant to Section 21C of the Exchange Act that Per-Se cease and desist from committing or causing any violation and any future violation of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1, 13a-13, and 13b2-1 thereunder. 
+
+   By the Commission. 
+
+ Jonathan G. Katz
+
+ Secretary 
+
+  Footnote 
+
+     1   
+		 The findings herein are made pursuant to Per-Se's Offer of Settlement and are not binding on any other person or entity named in this or any other proceeding. 
+   
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1344.txt b/raw/aaer/2000/AAER-1344.txt
new file mode 100644
index 0000000000000000000000000000000000000000..e2ec72de0dd17380cb47f86f8e21e71eb815ed3c
--- /dev/null
+++ b/raw/aaer/2000/AAER-1344.txt
@@ -0,0 +1,1498 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Glen Donald Lang 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358731","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Glen Donald Lang
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Glen Donald Lang
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES ACT OF 1933
+ Release No.    7916 / November 16, 2000 
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  43571 / November 16, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1344 / November 16, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No. 3-10365 
+ 
+
+    In the Matter of  GLEN DONALD LANG Respondent.   
+	 ORDER INSTITUTING PUBLIC PROCEEDINGS PURSUANT TO SECTION 8A OF THE SECURITIES ACT OF 1933 AND SECTION 21C OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS AND IMPOSING CEASE-AND-DESIST ORDER 
+   I. 
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate that public administrative proceedings be instituted pursuant to Section 8A of the Securities Act of 1933 ("Securities Act") and Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against Glen Donald Lang ("Lang"). 
+
+   In anticipation of the institution of these proceedings, Lang has submitted an Offer of Settlement, which Offer the Commission has determined to accept.  Solely for the purpose of these proceedings and any other proceeding brought by or on behalf of the Commission, or in which the Commission is a party, Lang, by his Offer of Settlement, admits the jurisdiction of the Commission over him and the subject matter of these administrative proceedings and consents to the entry of this Order Instituting Public Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings and Imposing Cease-and-Desist Order ("Order"), without admitting or denying the Commission's findings, except as for those contained in paragraph III.A. below, which are admitted. 
+
+ II. 
+
+   Accordingly, IT IS HEREBY ORDERED THAT proceedings pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act be, and hereby are, instituted. 
+
+ III. 
+
+   On the basis of this Order and the Offer of Settlement by Lang, the Commission makes the following findings  1  : 
+
+  BACKGROUND  
+
+ A. From January 1995 until August 1996, Lang was the president and chief executive officer of Imonics Corporation ("Imonics"), a computer software development and consulting company based in Cary, North Carolina.  Imonics was a wholly-owned subsidiary of an Atlanta-based supplier of business management services to physicians and hospitals (the "Company").  The Company's securities were registered with the Commission pursuant to Section 12(g) of the Exchange Act. 
+
+ LANG'S EFFECT ON THE COMPANY'S 1995
+
+  FINANCIAL RESULTS AS REPORTED TO THE COMMISSION  
+
+ B. In late 1995, Imonics and a German company agreed to form a joint venture to market Imonics products and services to clients in Europe.  The licensing agreement between the two companies was executed in December 1995, although the joint venture was not actually formed until the following year. 
+
+ C. Upon the execution of the licensing agreement, the German company delivered a note for $3.5 million to Imonics for the use of software developed by Imonics.  The Company, through Imonics, recognized this amount as revenue in the fourth quarter of 1995.   
+
+ D. In January 1996, Lang sent a letter to the head of the German partner in the joint venture in which he stated that Imonics would not ask its German partner to actually pay the $3.5 million until the joint venture between the two companies had produced profits sufficient to cover this amount.  Lang also stated that Imonics would waive any interest payments due on the $3.5 million.  Lang did not send a copy of this letter to the Company's corporate headquarters. 
+
+ E. Lang's letter materially varied the terms of the payment due to Imonics under the licensing agreement.  The terms of the payment created a contingency for the fee payable that, under Generally Accepted Accounting Principles, precluded recognition of the license fee revenue until the contingency was removed.  Therefore, the Company's recognition of $3.5 million of revenue from the Joint Venture in the fourth quarter of 1995 was improper. 
+
+ F. On February 6, 1996, the Company issued an earnings release reporting that it had earned net income of $2.4 million and $0.4 million for the quarter and year ended December 31, 1995, respectively.  On April 1, 1996, the Company filed its 1995 Form 10-K with the Commission, reporting these same amounts.  On April 3, 1996, the Company filed a registration statement on Form S-4 with the Commission to register shares for an acquisition.  This Form S-4 incorporated by reference the financial results provided in the Company's 1995 Form 10-K.  On May 31, 1996, the Company filed another registration statement on Form S-4 with the Commission to register shares for an acquisition.  This statement also incorporated by reference the results provided in the 1995 Form 10-K.  On June 28, 1996, the Company filed a registration statement on Form S-8 with the Commission to register shares for an employee benefits plan.  This statement also incorporated by reference the financial results reported in the Company's 1995 Form 10-K. 
+
+ G. In September 1996, Company operating and financial personnel visiting Germany received a copy of Lang's letter and faxed it back to Atlanta for inspection by the Company's accountants and outside auditors.  On October 22, 1996, the Company announced that, because of the discovery of the letter, it was restating its operating results as originally reported in its 1995 Form 10-K.  It no longer recognized the $3.5 million as revenue and restated its results to report net losses for both the quarter and year ended December 31, 1995. 
+
+  VIOLATIONS OF THE FEDERAL SECURITIES LAWS  
+
+ H. Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder make it unlawful to employ, or cause to be employed, devices, schemes or artifices to defraud, to make any untrue statement of material fact or omit to state material facts in connection with the offer, purchase or sale of securities.  Furthermore, the antifraud provisions make it unlawful to engage in any act, practice or course of business which operates or would operate as a fraud in connection with the offer, purchase or sale of securities. 
+
+ I. Section 13(a) of the Exchange Act and Rule 13a-1 thereunder require issuers of registered securities to file with the Commission annual reports prepared in conformity with the requirements of the Commission's rules and regulations.  Courts have held that it is implicit in this requirement that the information provided be accurate and contain no material misrepresentations or omissions.   See ,  e.g .,  SEC v. Savoy Industries, Inc ., 587 F.2d 1149, 1165 (D.C. Cir. 1978),  cert. denied , 440 U.S. 913 (1979).  In addition, Exchange Act Rule 12b-20 requires that these periodic reports contain all information necessary to ensure that the statements made in them are not materially misleading.  No showing of scienter is necessary to establish a violation of Section 13(a).   Savoy Industries , 587 F.2d at 1167.  A violation occurs when a materially false statement is filed.   SEC v. Kalvex, Inc ., 425 F.Supp. 310, 316 (S.D.N.Y. 1975). 
+
+ J. Section 13(b)(2)(A) of the Exchange Act requires issuers of securities to make and keep books, records and accounts which accurately and fairly reflect their transactions and the dispositions of their assets.  Exchange Act Rule 13b2-1 prohibits any person from, directly or indirectly, falsifying or causing to be falsified any book, record or account subject to Section 13(b)(2)(A).   
+
+ K. Lang directly violated Section 17(a) of the Securities Act and Section 10(b) the Exchange Act and Rule 10b-5 thereunder through his side letter to Imonics' German partner in the joint venture.  This letter contained terms that materially varied the payment obligations and created a contingency that made improper the Company's recognition of the $3.5 million of revenue due from the German company in the fourth quarter of 1995.  The Company reported its materially inflated net income to the investing public in an earnings release on February 6, 1996.  The Company incorporated the financial results reported in its 1995 Form 10-K in three registration statements intended to offer securities filed with the Commission in May, April and June 1996.  Lang also directly violated Rule 13b2-1 by causing the Company's books and records to falsely record the $3.5 million owed to Imonics as revenue for the fourth quarter and year ended December 31, 1995. 
+
+ L. Additionally, Lang caused the Company to violate the federal securities laws.  Lang's letter caused the Company to file an inaccurate 1995 Form 10-K in violation of Section 13(a) of the Exchange Act and Rules 12b-20 and 13a-1 thereunder.  Lang also caused the Company's violation of Section 13(b)(2)(A) of the Exchange Act by causing the Company's books and records to inaccurately record its revenue transactions. 
+
+ M. By the acts and omissions alleged in paragraphs III.A. through III.L., Lang committed violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rules 10b-5 and 13b2-1 thereunder and caused the Company to violate Section 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 12b-20 and 13a-1 thereunder. 
+
+ IV. 
+
+   In view of the foregoing, the Commission deems it appropriate to accept Lang's Offer of Settlement. 
+
+ ACCORDINGLY, IT IS HEREBY ORDERED, pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act that Lang cease and desist from committing or causing any violation and any future violation of Section 17(a) of the Securities Act and Sections 10(b), 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1 and 13b2-1 thereunder. 
+
+   By the Commission. 
+ Jonathan G. Katz
+  Secretary 
+ 
+   Footnote 
+
+     1   
+	 The findings herein are made pursuant to Lang's Offer of Settlement and are not binding on any other person or entity named in this or any other proceeding. 
+   
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1345.txt b/raw/aaer/2000/AAER-1345.txt
new file mode 100644
index 0000000000000000000000000000000000000000..4dce686de12f7d0e9e04dc85750a0b7dbe6901c7
--- /dev/null
+++ b/raw/aaer/2000/AAER-1345.txt
@@ -0,0 +1,1516 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | James Steele Douglass 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358726","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              James Steele Douglass
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        James Steele Douglass
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES ACT OF 1933
+ Release No.  7917 / November 16, 2000 
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No. 43572 / November 16, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1345 / November 16, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No.  3-10366 
+ 
+
+    In the Matter of  JAMES STEELE DOUGLASS Respondent.  
+	 ORDER INSTITUTING PUBLIC PROCEEDINGS PURSUANT TO SECTION 8A OF THE SECURITIES ACT OF 1933 AND SECTION 21C OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS AND IMPOSING CEASE-AND-DESIST ORDER 
+   I. 
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate that public administrative proceedings be instituted pursuant to Section 8A of the Securities Act of 1933 ("Securities Act") and Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against James Steele Douglass ("Douglass"). 
+
+   In anticipation of the institution of these proceedings, Douglass has submitted an Offer of Settlement, which Offer the Commission has determined to accept.  Solely for the purpose of these proceedings and any other proceeding brought by or on behalf of the Commission, or in which the Commission is a party, Douglass, by his Offer of Settlement, admits the jurisdiction of the Commission over him and the subject matter of these administrative proceedings and consents to the entry of this Order Instituting Public Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings and Imposing Cease-and-Desist Order ("Order"), without admitting or denying the Commission's findings, except as for those contained in paragraph III.A, which are admitted. 
+
+ II. 
+
+   Accordingly, IT IS HEREBY ORDERED THAT proceedings pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act be, and hereby are, instituted. 
+
+ III. 
+
+   On the basis of this Order and the Offer of Settlement by Douglass, the Commission makes the following findings  1  : 
+
+  FACTS  
+
+ A. Douglass joined an Atlanta-based supplier of business management services to physicians and hospitals (the "Company") in July 1994 as the Company's controller.  He later became a vice president and the chief accounting officer, reporting to the Company's chief financial officer.  Douglass continued to hold these positions until he voluntarily left the Company in September 1996.  The Company's securities were registered with the Commission pursuant to Section 12(g) of the Exchange Act.   
+
+ B. In the first quarter of 1996, Douglass was involved in the reversal of an accrual for vested employee bonuses of $1.4 million into income by a wholly-owned subsidiary of the Company.  The effect of this reversal was to decrease expenses and liabilities by this amount and increase income for the first quarter of 1996 on the Company's consolidated financial statements.   
+
+ C. The employee bonus plan at this subsidiary was a deferred compensation arrangement with vested benefits.  While the plan contained language allowing management certain discretion to cancel all bonuses, no changes were in fact made to the operation of the plan.  The employees covered by this plan had already earned these bonuses from past services and their right to payment required no additional services.  Accrual for this liability was appropriate and its reversal into income was a departure from generally accepted accounting principles ("GAAP").  The Company determined to reinstate the accrual in the third quarter of 1996.   
+
+ D. In the second quarter of 1996, the Company acquired an information technology provider and consulting firm based in Texas (the "Texas firm").  Before the completion of the acquisition, the Company directed the Texas firm to make entries that improperly reduced its income for the first quarter of 1996 by decreasing revenues and increasing reserves.  Douglass was aware of the establishment of these reserves.  In June 1996, Douglass instructed the Texas firm, now a wholly-owned subsidiary, to reverse this $2.5 million in reserves into income.   
+
+ E. Since there were no probable and reasonably estimable exposures to justify the establishment of these reserves, these reserves were not booked or reversed in conformity with GAAP.  The reversal of these reserves into income materially inflated the Company's earnings through consolidation in the second quarter of 1996. 
+
+ F. In the second quarter of 1996, Douglass learned that a Company subsidiary expected to incur additional costs to complete certain software development and consulting contracts.  The Company had already recognized as revenue all payments provided under these contracts, but Douglass learned that the subsidiary, and the Company through consolidation, would be exposed to additional material costs on these arrangements. 
+
+ G. Despite being aware by the end of the second quarter that additional costs would be incurred, Douglass failed to cause the Company to record the exposures on the Company's books and failed to establish any reserves for them.  As a result, the Company departed from GAAP and overstated the earnings from these contracts, and its revenue, during the second quarter.  In 1997, the Company recorded approximately $1.4 million of additional costs on these contracts as of the second quarter of 1996. 
+
+ H. During the first and second quarters of 1996, the Company failed to have internal controls sufficient to ensure that its financial statements were prepared in conformity with GAAP.  The Company had no formal written corporate-wide accounting policies and procedures to ensure the application of consistent accounting practices throughout the Company.  Control weaknesses resulted in incorrect books and records and misleading financial statements reported by the Company in filings with the Commission.  The Company had no review process to ensure that reversals of accruals into income were proper and had appropriate supporting documentation.  The Company improperly established reserves at a subsidiary without probable and reasonably estimable exposures, later reversing them into income.  The Company failed to have adequate procedures to ensure the recording of reserves for probable losses on its software development contracts, even though it was aware that such losses were probable and should have been recorded. 
+
+ I. Douglass, as the Company's controller and chief accounting officer, failed to implement a system of sufficient internal controls to ensure that the Company's financial statements were prepared in accordance with GAAP. 
+
+ J. Douglass also failed to assure compliance with those internal controls the Company did have with respect to the accounting entries described above. 
+
+ K. On May 15, 1996, the Company filed its Form 10-Q for the first quarter of 1996, reporting net income for the quarter of $13.2 million, a figure which was misstated due to the inclusion of the bonus accrual which a Company subsidiary had improperly reversed into income.  Douglass signed this Form 10-Q as "Vice President - Corporate Controller and Chief Accounting Officer (Principal Accounting Officer)."   
+
+ L. The Company filed its Form 10-Q for the second quarter of 1996 on August 14, 1996.  The net income figure of $3.3 million reported for this quarter was overstated due to the improper establishment and reversal of reserves at a company the Company acquired during the second quarter and the failure to accrue for probable losses on certain software development contracts at a subsidiary.  Additionally, the Company overstated its results for the first six months of 1996 in this Form 10-Q because the improper reversal of the bonus accrual in the first quarter of 1996 was included in its year-to-date results.  Douglass signed this Form 10-Q as "Vice President - Corporate Controller and Chief Accounting Officer (Principal Accounting Officer)." 
+
+ M. On June 28, 1996, the Company filed a registration statement on Form S-8 with the Commission.  This registration statement incorporated by reference the Company's inaccurate Form 10-Q for the first quarter of 1996, as discussed in paragraphs III.B and III.C of the Order.  Douglass signed this registration statement as "Vice President, Corporate Controller and Chief Accounting Officer." 
+
+ N. In early 1997, the Company restated the operating results it had previously reported for each quarter of 1996.  The restatements of the first and second quarters of 1996 were to correct, among other items, the improper reversal into income of the employee bonus plan accrual, the improper reversal of reserves at the Texas firm and its failure to establish reserves for the probable losses on a subsidiary's software development contracts.  The restatement materially reduced the Company's net income for the first and second quarters and changed the net income reported for the second quarter of 1996 into a net loss.  
+
+  VIOLATIONS OF THE FEDERAL SECURITIES LAWS  
+
+ B. Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, collectively, make it unlawful to employ, directly or indirectly, devices, schemes or artifices to defraud, to make any untrue statement of material fact or omit to state material facts necessary in order to make statements made not misleading in connection with the offer, purchase or sale of securities.  Furthermore, these antifraud provisions make it unlawful to engage in any act, practice or course of business which operates or would operate as a fraud in connection with the offer, purchase or sale of securities. 
+
+ B. Section 13(a) of the Exchange Act and Rule 13a-13 thereunder require issuers of registered securities to file with the Commission quarterly reports prepared in conformity with the requirements of the Commission's rules and regulations.  Courts have held that it is implicit in this requirement that the information provided be accurate and contain no material misrepresentations or omissions.   See ,  e.g .,  SEC v. Savoy Industries, Inc ., 587 F.2d 1149, 1165 (D.C. Cir. 1978),  cert. denied , 440 U.S. 913 (1979).  In addition, Exchange Act Rule 12b-20 requires that these periodic reports contain all information necessary to ensure that the statements made in them are not materially misleading.  No showing of scienter is necessary to establish a violation of Section 13(a).   Savoy Industries , 587 F.2d at 1167.  A violation occurs when a materially false statement is filed.   SEC v. Kalvex, Inc ., 425 F.Supp. 310, 316 (S.D.N.Y. 1975). 
+
+ C. Section 13(b)(2)(A) of the Exchange Act requires issuers of securities to make and keep books, records and accounts which accurately and fairly reflect their transactions and the dispositions of their assets.  Exchange Act Rule 13b2-1 prohibits any person from, directly or indirectly, falsifying or causing to be falsified any book, record or account subject to Section 13(b)(2)(A).  Exchange Act Rule 13b2-2 provides that no director or officer of an issuer shall make any false or materially misleading statement, or omit to state or cause another to omit to state any material fact necessary to make statements made not misleading to an accountant in connection with, inter alia, the preparation or filing of any document or report required to be filed with the Commission.   
+
+ D. Section 13(b)(2)(B) of the Exchange Act requires issuers to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that, among other things, transactions are executed in accordance with management's authorization and that transactions are recorded as necessary to permit the preparation of financial statements in conformity with GAAP and to maintain accountability for assets.   
+
+ E. Section 13(b)(5) of the Exchange Act prohibits persons from knowingly circumventing or knowingly failing to implement a system of internal accounting controls or knowingly falsifying any book, record or account described in Section 13(b)(2) of the Exchange Act.   
+
+ F. By engaging in the conduct described above, Douglass violated Section 17(a) of the Securities Act and Section 10(b) the Exchange Act and Rule 10b-5 thereunder.  These acts resulted in the Company filing materially misleading financial statements in its Forms 10-Q for the first and second quarters of 1996 and, through incorporation, in a registration statement on Form S-8 filed in June 1996.   
+
+ G. Douglass violated Rule 13b2-1 by causing the Company's books and records to falsely overstate the Company's income for the first and second quarters of 1996.  Douglass also violated Rule 13b2-2 by omitting to give accurate and complete information to the Company's outside auditors concerning the nature of the entries on the Company's books and records during the first and second quarters of 1996.  
+
+ H. Douglass violated Section 13(b)(5) of the Exchange Act by failing to implement a system of internal accounting controls sufficient to prevent the Company's departures from GAAP. 
+
+ I. Additionally, Douglass caused the Company to violate Section 13(a) of the Exchange Act and Rules 12b-20 and 13a-13 thereunder by causing the Company to file inaccurate Forms 10-Q for the first and second quarters of 1996.  Douglass caused the Company to violate Section 13(b)(2)(A) of the Exchange Act by causing the Company's books and records to inaccurately record its transactions.  Douglass also caused the Company to violate Section 13(b)(2)(B) of the Exchange Act by failing to ensure that the Company had sufficient internal accounting controls to provide reasonable assurances that its financial statements were prepared in accordance with GAAP.   
+
+ J. By the acts and omissions alleged in paragraphs III.B through III.M of the Order, Douglass committed violations of Section 17(a) of the Securities Act and Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5, 13b2-1 and 13b2-2 thereunder and caused the Company to violate Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20 and 13a-13 thereunder. 
+
+ IV. 
+
+   In view of the foregoing, the Commission deems it appropriate to accept Douglass's Offer of Settlement. 
+
+ ACCORDINGLY, IT IS HEREBY ORDERED, pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act that Douglass cease and desist from committing or causing any violation and any future violation of Section 17(a) of the Securities Act and Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B) and 13(b)(5) of the Exchange Act and Rules 10b-5, 12b-20, 13a-13, 13b2-1 and 13b2-2 thereunder. 
+
+   By the Commission. 
+
+               Jonathan G. Katz
+                Secretary 
+ 
+   Footnote 
+     1   
+	 The findings herein are made pursuant to Douglass's Offer of Settlement and are not binding on any other person or entity named in this or any other proceeding. 
+   
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1346.txt b/raw/aaer/2000/AAER-1346.txt
new file mode 100644
index 0000000000000000000000000000000000000000..536ef3a2a2fca91265991c0db7c7d4bb86ee9caa
--- /dev/null
+++ b/raw/aaer/2000/AAER-1346.txt
@@ -0,0 +1,1504 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Barry H. Peterson-Ross 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358706","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Barry H. Peterson-Ross
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Barry H. Peterson-Ross
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES ACT OF 1933
+ Release No.    7920 / November 22, 2000 
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  43609 / November 22. 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.   1346 / November 22, 2000 
+
+ ADMINISTRATIVE PROCEEDING 
+ File No.  3-10368 
+
+   In the Matter of  BARRY H. PETERSON-ROSS  
+	 ORDER INSTITUTING CEASE-AND-DESIST
+ PROCEEDINGS PURSUANT TO SECTION 8A
+ OF THE SECURITIES ACT OF 1933 AND
+ SECTION 21C OF THE SECURITIES EXCHANGE
+ ACT OF 1934, MAKING FINDINGS AND
+ IMPOSING CEASE-AND-DESIST ORDER> 
+   I. 
+
+   The Securities and Exchange Commission (the "Commission") deems it appropriate that cease-and-desist proceedings pursuant to Section 8A of the Securities Act of 1933 ("Securities Act") and Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") be instituted with respect to Barry H. Peterson-Ross ("Ross"). 
+
+ II. 
+
+   In anticipation of these proceedings, Ross has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept.  Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings contained herein, except that Ross admits the jurisdiction of the Commission over him and the subject matter of this proceeding and the matters described in paragraphs III.A. and B. of this Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings and Imposing Cease-and-Desist Order ("Order"), Ross has consented to the findings and sanctions set forth below. 
+
+   Accordingly, IT IS ORDERED that proceedings pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act be, and they hereby are, instituted. 
+
+ III. 
+
+   On the basis of this Order and the Offer submitted by Ross, the Commission finds that:  1   
+
+ A. Barry H. Peterson-Ross is a resident of New York, New York and has passed the examination to become a certified public accountant in that state.  Ross was the responsible accounting person, having the title of Chief Financial Officer, for Detour Magazine, Inc. ("Detour"), a reporting company to the Commission, during the time period relevant to this proceeding. 
+
+ B. Detour is a Colorado corporation headquartered in Los Angeles, California.  Its common stock has been registered with the Commission pursuant to Section 12(g) of the Exchange Act since 1995.   
+
+ C. During 1997 and 1998 Ross prepared financial statements which were included in Detour's filings with the Commission on Forms 10-QSB.  The statements of operations contained in these financial statements included line items that consisted of fractions of previously prepared statements of operations.  Ross knowingly used fractions, rather than actual results of operations, in each of these Forms 10-QSB. 
+
+ D. In or about November 1997 Detour effected a private placement of its common stock.  The private placement memorandum for that offering contained financial statements that contained, as line items, numbers that were simple fractions of previously prepared statements of operations for longer periods of time, rather than actual results of operations. 
+
+ E. On June 9, 1997, Detour entered into stock option agreements with seven different consulting companies for public relations services.  The option agreements provided that Detour would issue a total of 2.2 million shares of common stock to the consulting companies at an exercise price of $.01 per share (the "consulting options").   
+
+ F Also on June 9, 1997, Detour granted an option for 2,800,000 shares to Anchor Capital Management, Ltd. ("Anchor"), an offshore entity, at a cost of $28,000 with an exercise price of $1.50 per share.  This price, according to Detour's Form 8-K dated June 29, 1997, was established pursuant to arm's length negotiations.   
+
+ G. Detour's board of directors approved both the issuance of the consulting options and the grant of the Anchor option on June 9, 1997.   Detour's board approved the stock option plan relating to the issuance of the options on December 10, 1997.   
+
+ H. At the time the option agreements and the Anchor agreement were signed, Detour's stock was not yet trading publicly.  Trading in its shares began on December 10, 1997, on the OTC Bulletin Board at $1.00 bid, $1.50 ask.   
+
+ I. In late 1996, Detour effected a private placement of its common stock.  In this offering the company sold its shares for net proceeds of approximately $.76 a share.  In or about November 1997, Detour effected a second private placement at a price of $1.50 per share.   
+
+ J. On December 23, 1997 Detour filed a registration statement on Form S-8 with respect to the shares underlying the consulting options.  
+
+ K. The exercise price for the consulting options, $.01 per share, was far less than the fair value of the underlying shares, given (1) the $.76 per share price at which Detour common stock was offered in the 1996 private placement; (2) the $1.50 per share price at which Detour stock was offered in the November 1997 private placement; (3) the $1.50 per share price concurrently granted to Anchor in an arm's length transaction; and (4) the price at which the stock opened for trading the day before Detour's board approved the stock option plan relating to the consulting options.   
+
+ L. In its financial statements for the year ended December 31, 1997, Detour failed to include in its statement of operations any expense item that would reflect the difference between the price at which the consulting options were issued and the fair value of the underlying shares at the time they were issued.  These financial statements were included in Detour`s Form 10-KSB which was filed with the Commission on or about April 15, 1998.   
+
+ M. Detour's failure to record such an expense and include certain disclosures associated with the issuance of the consulting options caused the financial statements of Detour, as contained in its Form 10-KSB for the year ended December 31, 1997, and subsequent filings, to deviate from Generally Accepted Accounting Principles and to materially misrepresent its financial condition and results of operations.   
+
+ N. Ross caused Detour to fail to make and keep books, records, and accounts which, in reasonable detail, accurately and fairly reflected the transactions and dispositions of the assets of Detour, as more particularly described in paragraphs III.C. through M. above. 
+
+ O. Ross caused Detour to fail to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that:  (1) transactions were executed in accordance with management's general or specific authorization, (2) transactions were recorded as necessary (i) to permit preparation of financial statements in conformity with GAAP or any other criteria applicable to such statements, and (ii) to maintain accountability for assets as more particularly described in paragraphs III.C. through M. above. 
+
+ P. By the conduct described in paragraphs C. and L. above, Ross caused Detour's books, records or accounts to be falsified. 
+
+ Q. By the conduct described in paragraphs C. through P. above, Ross caused Detour to violate Section 17(a) of the Securities Act and Sections 10(b) and 13(a) and (b) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13 and 13b2-1 thereunder. 
+
+ IV. 
+
+   In view of the foregoing, it is appropriate to impose the sanctions agreed to in the Offer submitted by Ross.  Accordingly, 
+
+   IT IS ORDERED, pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act, that Ross cease and desist from committing or causing any violations and any future violations of Section 17(a) of the Securities Act and Sections 10(b) and 13(a) and (b) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13 and 13b2-1 thereunder; and 
+
+ Ross undertakes, pursuant to agreement with the Commission and not pursuant to Section 21C of the Exchange Act, on reasonable notice and without service of a subpoena, to provide discovery and testify truthfully at any deposition and at any judicial or administrative proceeding arising from or relating to the matters described in this Order.  
+
+   By the Commission. 
+ Jonathan G. Katz
+  Secretary 
+ 
+   Footnote 
+
+     1    
+	 The findings herein are made pursuant to Respondent's offer of settlement and are not binding on any other person or entity in this or any other proceeding. 
+   
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1347.txt b/raw/aaer/2000/AAER-1347.txt
new file mode 100644
index 0000000000000000000000000000000000000000..3183934ca0779f516f4ea5449f1b4ec06459f8e4
--- /dev/null
+++ b/raw/aaer/2000/AAER-1347.txt
@@ -0,0 +1,1504 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Detour Magazine, Inc. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358701","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Detour Magazine, Inc.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Detour Magazine, Inc.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES ACT OF 1933
+ Release No.    7921 / November 22, 2000 
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  43610 / November 22, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.    1347 / November 22, 2000              
+
+ ADMINISTRATIVE PROCEEDING 
+ File No.  3-10369 
+
+   In the Matter of  DETOUR MAGAZINE, INC.  
+	 ORDER INSTITUTING CEASE-AND-DESIST
+ PROCEEDINGS PURSUANT TO SECTION 8A
+ OF THE SECURITIES ACT OF 1933 AND
+ SECTION 21C OF THE SECURITIES EXCHANGE
+ EXCHANGE ACT OF 1934, MAKING 
+ FINDINGS AND IMPOSING CEASE-AND
+ DESIST ORDER 
+   I. 
+
+   The Commission deems it appropriate that cease-and-desist proceedings be instituted pursuant to Section 8A of the Securities Act of 1933 ("Securities Act") and Section 21C of the Securities Exchange Act of 1934 ("Exchange Act"), with respect to Detour Magazine, Inc. ("Detour"). 
+
+ II. 
+
+   In anticipation of these proceedings, Detour has submitted an Offer of Settlement ("Offer") which the Commission has determined to accept.  Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings contained herein, except that Detour admits the jurisdiction of the Commission over it and the subject matter of this proceeding and the matters described in paragraphs III.A. and B. of this Order Instituting Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings and Imposing Cease-and-Desist Order ("Order"), Detour has consented to the findings and sanctions set forth below. 
+
+   Accordingly, IT IS ORDERED that proceedings pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act and be, and they hereby are, instituted. 
+
+               III. 
+
+   On the basis of this Order and the Offer submitted by Detour, the Commission finds that:  1   
+
+ A. Respondent Detour Magazine, Inc., is a Colorado corporation headquartered in Los Angeles, California.  Its common stock has been registered with the Commission pursuant to Section 12(g) of the Exchange Act since 1995. 
+
+ B. During 1997 and 1998 Detour made filings with the Commission on Forms 8-K, 10-QSB and 10-KSB.   
+
+ C. Detour included statements of operations in Form 10-QSB filings with the Commission during 1997 and 1998 which contained as line items numbers that were simple fractions of previously prepared statements of operations for longer periods of time, rather than actual results of operations. 
+
+ D. In or about November 1997 Detour effected a private placement of its common stock.  The private placement memorandum for that offering contained financial statements that contained, as line items, numbers that were simple fractions of previously prepared statements of operations for longer periods of time, rather than actual results of operations. 
+
+ E. On June 9, 1997, Detour entered into stock option agreements with seven different consulting companies for public relations services.  The option agreements provided that Detour would issue a total of 2.2 million shares of common stock to the consulting companies at an exercise price of $.01 per share (the "consulting options").   
+
+ F Also on June 9, 1997, Detour granted an option for 2,800,000 shares to Anchor Capital Management, Ltd. ("Anchor"), an offshore entity, at a cost of $28,000 with an exercise price of $1.50 per share.  This price, according to Detour's Form 8-K dated June 29, 1997, was established pursuant to arm's length negotiations.   
+
+ G. Detour's board of directors approved both the issuance of the consulting options and the grant of the Anchor option on June 9, 1997.   Detour's board approved the stock option plan relating to the issuance of the options on December 10, 1997.   
+
+ H. At the time the option agreements and the Anchor agreement were signed, Detour's stock was not yet trading publicly.  Trading in its shares began on December 10, 1997, on the OTC Bulletin Board at $1.00 bid, $1.50 ask.   
+
+ I. In late 1996, Detour effected a private placement of its common stock.  In this offering the company sold its shares for net proceeds of  approximately $.76 a share.  In or about November 1997, Detour effected a second private placement at a price of $1.50 per share.   
+
+ J. On December 23, 1997 Detour filed a registration statement on Form S-8 with respect to the shares underlying the consulting options.  
+
+ K. The exercise price for the consulting options, $.01 per share, was far less than the fair value of the underlying shares, given (1) the $.76 per share price at which Detour common stock was offered in the 1996 private placement; (2) the $1.50 per share price at which Detour stock was offered in the November 1997 private placement; (3) the $1.50 per share price concurrently granted to Anchor in an arm's length transaction; and (4) the price at which the stock opened for trading the day before Detour's board approved the stock option plan relating to the consulting options.   
+
+ L. In its financial statements for the year ended December 31, 1997, Detour failed to include in its statement of operations any expense item that would reflect the difference between the price at which the consulting options were issued and the fair value of the underlying shares at the time they were issued.  These financial statements were included in Detour`s Form 10-KSB which was filed with the Commission on or about April 15, 1998.   
+
+ M. Detour's failure to record such an expense and include certain disclosures associated with the issuance of the consulting options caused the financial statements of Detour, as contained in its Form 10-KSB for the year ended December 31, 1997, and subsequent filings, to deviate from Generally Accepted Accounting Principles and to materially misrepresent its financial condition and results of operations.   
+
+ N. Detour failed to make and keep books, records, and accounts which, in reasonable detail, accurately and fairly reflected the transactions and dispositions of the assets of Detour, as more particularly described in paragraphs III. C. through M. above. 
+
+ O. Detour failed to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that:  (1) transactions were executed in accordance with management's general or specific authorization, (2) transactions were recorded as necessary (i) to permit preparation of financial statements in conformity with GAAP or any other criteria applicable to such statements, and (ii) to maintain accountability for assets as more particularly described in paragraphs III. C. through M. above. 
+
+ P. Detour caused its books, records or accounts to be falsified, as more particularly described in paragraphs III. C. through M. above.  
+
+ Q. By this conduct described in paragraphs III. C. through P. above, Detour violated Section 17(a) of the Securities Act and Sections 10(b) and 13(a) and (b) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13 and 13b2-1 promulgated thereunder. 
+
+               IV. 
+
+   In view of the foregoing, it is appropriate to impose the sanctions agreed to in the Offer submitted by Detour.  Accordingly, 
+
+   IT IS ORDERED, pursuant to Section 8A of the Securities Act and Section 21C of the Exchange Act, that Detour Magazine, Inc. cease and desist from committing or causing any violations and any future violations of Section 17(a) of the Securities Act and Sections 10(b) and 13(a) and (b) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13 and 13b2-1 promulgated thereunder.  
+
+   IT IS FURTHER ORDERED that Detour Magazine, Inc. amend its filings with the Commission to properly reflect its financial condition and operating results and, as required by Section 13(b)(2) of the Exchange Act, make and keep books, records, and accounts which, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; and devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that, among other things, transactions are recorded as necessary to permit the preparation of financial statements in conformity with generally accepted accounting principles. 
+
+   By the Commission. 
+ Jonathan G. Katz
+  Secretary 
+ 
+   Footnote 
+     1   
+	 The findings herein are made pursuant to Respondent's offer of settlement and are not binding on any other person or entity in this or any other proceeding. 
+   
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1348.txt b/raw/aaer/2000/AAER-1348.txt
new file mode 100644
index 0000000000000000000000000000000000000000..76e123b7549296971de5e82c578c6a9370051801
--- /dev/null
+++ b/raw/aaer/2000/AAER-1348.txt
@@ -0,0 +1,1544 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | H.J. Meyers & Co., Inc., James A. Villa and James C. Witzel 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358696","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              H.J. Meyers & Co., Inc., James A. Villa and James C. Witzel
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        H.J. Meyers & Co., Inc., James A. Villa and James C. Witzel
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.   43622 / November 27, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.    1348 / November 27, 2000 
+
+ ADMINISTRATIVE PROCEEDING
+ File No. 3-10141 
+
+        In the Matter of 
+  H.J. Meyers & Co., Inc.,
+ James A. Villa, 
+ and James C. Witzel,
+  Respondents.   
+    : : : : : : : :   
+   ORDER MAKING FINDINGS
+ AND IMPOSING REMEDIAL
+ SANCTIONS, CEASE-AND-DESIST
+ ORDER, AND CIVIL
+ MONEY PENALTY AS TO
+ JAMES WITZEL 
+     
+
+ 
+
+
+  I.  
+
+ In the public administrative proceeding File No. 3-10141, ordered pursuant to Sections 15(b), 19(h) and 21C of the Exchange Act and Rule 102(e) of the Commission's Rules of Practice, Respondent James Witzel (Witzel) submitted an Offer of Settlement (Offer), which the Commission has determined to accept.  1    Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings contained in this Order, except for the Commission's jurisdiction with respect to the matters set forth in this Order and those facts which are set forth in paragraph II.A. below, which Witzel admits, Witzel consents to the entry of this Order. 
+
+  II.  
+
+   On the basis of this Order, the Order Instituting Public Administrative Proceedings in this matter and the Offer submitted by Witzel, the Commission finds that: 
+
+   Respondent   
+
+   A.  James C. Witzel (Witzel), age 46 and a resident of Pittsford, New York, was the Chief Financial Officer (CFO) and Financial and Operations Principal (FINOP) of H.J. Meyers & Co., Inc., (H.J. Meyers) a registered broker-dealer.  At all times relevant hereto, Witzel held a Series 27 FINOP license and was licensed as a Certified Public Accountant (CPA) in the State of New York.  The accounting department at H.J. Meyers reported to Witzel and he was responsible for the department's supervision.  Witzel, as the firm's CFO and FINOP, reported directly to the firm's president.  
+
+   H.J. Meyers' Inaccurate Accounting Records    
+
+   B.  In June 1998, an outside investor agreed to loan $2.5 million jointly to H.J. Meyers and H.J. Meyers Group (HJM Group).  HJM Group was a holding company that owned H.J. Meyers.  HJM Group, in turn, was owned by the president of H.J. Meyers.        
+
+   C.  Pursuant to the terms of the loan, H.J. Meyers and HJM Group were jointly and severally bound to repay the full $2.5 million plus interest of 15% per annum payable monthly.  One of the loan documents stated that the $2.5 million loan was to be secured by collateral -- 130,000 shares of a specified common stock then in H.J. Meyers' inventory.  
+
+   D.  On or about June 29, 1998, the president of H.J. Meyers executed a number of loan documents on behalf of both H.J. Meyers and HJM Group in order to facilitate the loan transaction.  Each of the five documents that the firm's president signed was prepared with dual signature blocks for his signature on behalf of HJM Group and H.J. Meyers. 
+
+   E.    Although the loan documents were signed in June, neither H.J. Meyers nor HJM Group received any funds from the outside investor until July 1998. 
+
+ F.   Nevertheless, on or before the time Witzel filed H.J. Meyers' June FOCUS report in July, Witzel through others under his supervision made entries to the accounting records of H.J. Meyers which inaccurately indicated that H.J. Meyers had received $2.25 million of cash in June 1998. 
+
+   G.  In its June 1998 FOCUS Report, H.J. Meyers reported an excess net capital of approximately $808,770.  Without the inaccurate accounting entries described in the previous paragraph, H.J. Meyers would have reported a net capital deficiency of over $360,000 as of the end of June 1998.  2   
+
+   H.  H.J. Meyers ultimately received proceeds from the loan in the early part of  July 1998.  Thereafter, H.J. Meyers, through Witzel and/or others under his supervision, should have recorded a liability to the outside investor reflecting the loan.  Neither Witzel nor anyone else at H.J. Meyers ever recorded the loan as a liability on H.J. Meyers' books. 
+
+   I.  Also in July 1998, the 130,000 shares to be pledged as collateral for the loan were transferred to HJM Group and then later were placed in a safe deposit box controlled by the outside investor.  Thereafter, at all times relevant to this proceeding, the shares were owned by HJM Group.  Nevertheless, these same shares were reported as an asset in H.J. Meyers' July FOCUS report that Witzel submitted in August.  The shares were reported as an asset in the firm's deficiency notice dated September 9, 1998 filed by Witzel. 
+
+   J.  Witzel and/or others under his supervision made inaccurate entries to the firm's accounting records that inaccurately recorded a transfer of the shares from HJM Group back to H.J. Meyers.  No such transfer ever occurred.   
+
+   K.  H.J. Meyers reported excess net capital of approximately $685,704 for July 1998 and a deficit of about $1,050,840 for August 1998.  Without the inaccurate accounting entries described above, H.J. Meyers would have reported net capital deficiencies for July 1988 and August 1998 of about $3,078,697 and $4,548,162.  3   
+
+    The Filing of Inaccurate FOCUS Reports and Notice under  
+     Rule 17a-11 of the Exchange Act   
+
+   L.  H.J. Meyers acting through Witzel filed inaccurate FOCUS reports on behalf of H.J. Meyers for the months of June and July 1998 that contained inaccurate net capital calculations.  H.J. Meyers acting through Witzel also filed an inaccurate net capital deficiency notice dated September 9, 1998 that contained inaccurate net capital calculations.   
+
+   M.  H.J. Meyers, acting through Witzel, incorrectly reported in the June FOCUS report that the firm had received $2.25 million in cash.  As a result, the June FOCUS report incorrectly reported excess net capital of about $808,770.     
+
+   N.  H.J. Meyers acting through Witzel incorrectly included the value of the 130,000 shares transferred to HJM Group as an asset in the firm's July FOCUS report; failed to report any liability related to the loan from the outside investor; and concealed H.J. Meyers' net capital deficiency by overstating the firm's assets.  The July FOCUS report incorrectly reported excess net capital of about $685,704.  
+
+   O.  By the time that Witzel had to file H.J. Meyers' August FOCUS report in September, the firm's net capital deficiency had grown too large to overlook.  Even with the inaccurate accounting entries described above, the firm's books still indicated that the firm had a net capital deficiency of over $1 million.   
+
+   P.  Accordingly, on September 9, 1998, Witzel notified the Commission of H.J. Meyers' net capital deficiency.  However, Witzel's net capital deficiency notice submitted on behalf of H.J. Meyers was inaccurate in that it contained the same incorrect entries described above.  Thus, the notification that Witzel filed incorrectly reported a much smaller net capital deficiency of about $1,050,840.  In reality the deficiency was over $4.5 million, far greater than what Witzel reported.  
+
+   Q.  As CFO and FINOP of H.J. Meyers, it was Witzel's responsibility to accurately complete the firm's net capital computation and to file the firm's monthly FOCUS report.  He was also responsible for submitting all notices of net capital deficiencies to the Commission and the NASD.  Through the conduct described above, HJM acting through Witzel incorrectly reported the firm's net capital deficiencies.      
+
+   R.  H.J. Meyers conducted securities transactions on a continuous basis during the time period from June 30, 1998 through September 9, 1998. 
+
+ S.  These proceedings against Witzel are in the public interest and for the protection of investors. 
+
+     Violations   
+
+   T.  As alleged above, H.J. Meyers willfully violated Section 15(c)(3) of the Exchange Act and Rule 15c3-1 thereunder in that, by the use of the mails, or means or instrumentalities of interstate commerce, H.J. Meyers effected transactions in, or induced or attempted to induce the purchase or sale of, securities (other than an exempted security (except a government security) or commercial paper, bankers' acceptances or commercial bills) in contravention of the rules and regulations prescribed by the Commission as necessary or appropriate in the public interest for the protection of investors to provide safeguards with respect to the financial responsibility and related practices of brokers and dealers. 
+
+   U.  As alleged above, H.J. Meyers willfully violated Section 17(a)(1) of the Exchange Act and Rules 17a-3 and 17a-5, respectively, which require registered brokers and dealers to make and keep current books and records relating to its brokerage business, and to make certain reports and filings with the Commission. 
+
+   V.  As alleged above, H.J. Meyers willfully violated Rule 17a-11(b) which requires that every registered broker or dealer whose net capital falls below the minimum amount required by Rule 15c3-1 give telegraphic notice of such deficiency that same day to the Commission.  
+
+   W.  As alleged above, the H.J. Meyers willfully violated Rule 17a-11(d) under the Exchange Act which requires every broker or dealer who fails to make or keep current the books and records required by Rule 17a-3 to give notice to the Commission of the fact that same day. 
+
+   X.  As alleged above, Witzel caused and willfully aided and abetted H.J. Meyers' willful violations of Sections 15(c)(3) and 17(a)(1) of the Exchange Act and Rules 15c3-1, 17a-3, 17a-5 and 17a-11(b) and 17a-11(d) thereunder.  
+
+  III.  
+
+   In view of the foregoing, the Commission finds that it appropriate in the public interest and for the protection of investors to impose the sanctions specified in the Offer. 
+
+ Accordingly,  IT IS HEREBY ORDERED that: 
+
+   1. Pursuant to Section 21C of the Exchange Act, Witzel is hereby ordered to cease and desist from committing or causing any violation and any future violation of Sections 15(c)(3) and 17(a) (1) of the Exchange Act, and Rules 15c3-1, 17a-3, 17a-5, and 17a-11 thereunder; 
+
+   2. Witzel be, and hereby is, suspended from association with any broker or dealer for a period of twelve months; 
+
+   3. Witzel shall, within 30 days of the entry of this Order, pay a civil money penalty in the amount of $10,000 to the United States Treasury.  Such payment shall be: (A) made by United States postal money order, certified check, bank cashier's check or bank money order; (B) made payable to the Securities Exchange Commission; (C) hand-delivered or mailed to the Comptroller, Securities and Exchange Commission, Operations Center, 6432 General Green Way, Stop 0-3, Alexandria, Virginia, 22312; and (D) submitted under cover letter that identifies Witzel as a Respondent in these proceedings and the file number of these proceedings, a copy of which cover letter and money order or check shall be sent to Joy M. Boddie, Esquire, Special Counsel, Securities and Exchange Commission, 500 West Madison Street, Suite 1400, Chicago, Illinois, 60661; and 
+
+ 4. Pursuant to Rule 102(e)(iii) of the Commission's Rules of Practice, Witzel is hereby temporarily denied the privilege of appearing or practicing before the Commission as an accountant for a period of twelve months.  Twelve months from the date of the Order, Witzel may resume appearing or practicing before the Commission as an accountant provided that if: 
+
+   (a) Witzel acts as a preparer or reviewer, or any person responsible for the preparation or review, of financial statements of any public company or a broker-dealer that are filed with the Commission, Witzel's work in his practice before the Commission will be reviewed either by the independent audit committee of the public company for which he works or in some other acceptable manner for a period of twenty-four months from his assumption of such a position; and/or 
+
+   (b) Witzel acts as an independent accountant that: 
+
+     (i) Witzel, or the firm with which he is associated, is a member of the SEC Practice Section of the American Institute of Certified Public Accountants Division for CPA firms ("SEC Practice Section"); 
+
+     (ii) Witzel or the firm has received an unqualified report relating to his or the firm's most recent peer review conducted in accordance with the guidelines adopted by the SEC Practice Section; and 
+
+                         (iii) As long as Witzel appears or practices before the Commission as an independent accountant he will remain either a member of the SEC Practice Section or associated with a member firm of the SEC Practice Section, and will comply with all applicable SEC Practice Section Requirements, including all requirements for periodic peer reviews, concurring partner reviews, and continuing professional education.  
+
+   By the Commission. 
+
+               Jonathan G. Katz
+               Secretary 
+ 
+
+ 
+ Footnotes 
+     1       The Order Instituting Proceeding in this matter was issued on February 7, 2000.      2       The discrepancy between H.J. Meyers' reported and actual net capital balances did not equal the amount of the loan primarily because, in connection with its receipt of the loan proceeds, the firm transferred to HJM Group 130,000 shares of stock.      3       These discrepancies in part consisted of the loan proceeds and the value of the 130,000 shares.     
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1349.txt b/raw/aaer/2000/AAER-1349.txt
new file mode 100644
index 0000000000000000000000000000000000000000..380b31ffd9676f968cc31f6af49a4138d75ac346
--- /dev/null
+++ b/raw/aaer/2000/AAER-1349.txt
@@ -0,0 +1,1490 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Monarch Investment Properties Inc. and Anthony E. Gurino 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358621","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Monarch Investment Properties Inc. and Anthony E. Gurino
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Monarch Investment Properties Inc. and Anthony E. Gurino
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  43682 / December 6, 2000 
+
+ ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.    1349 / Decmeber  6, 2000
+
+ File No. 3-10377  
+
+   In the Matter of
+		 MONARCH INVESTMENT
+		 PROPERTIES, INC.  
+		 and 
+		 ANTHONY E. GURINO  
+		 ORDER INSTITUTING CEASE-AND-DESIST PROCEEDINGS PURSUANT TO SECTION 21C OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS AND IMPOSING CEASE-AND-DESIST ORDER 
+	   I. 
+
+   The Commission deems it appropriate that cease-and-desist proceedings be instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act"), with respect to Monarch Investment Properties, Inc., formerly known as Iron Holdings, Inc. ("Monarch") and Anthony E. Gurino ("Gurino"). 
+
+ II. 
+
+   In anticipation of these proceedings, Monarch and Gurino have each submitted an Offer of Settlement ("Offer"), both of  which the Commission has determined to accept.  Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings contained herein, except that Monarch and Gurino admit the jurisdiction of the Commission over each of them and the subject matter of this proceeding and the matters described in paragraphs III.A. and III.B. of this Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings and Imposing Cease-and-Desist Order ("Order"), Monarch and Gurino have consented to the findings and sanctions set forth below. 
+
+   Accordingly, IT IS ORDERED that proceedings pursuant to Section 21C of the Exchange Act be, and they hereby are, instituted. 
+
+ III. 
+
+   On the basis of this Order and the Offers submitted by Monarch and Gurino, the Commission finds that:  1   
+
+ A. Gurino is 48 years of age and a resident of the State of New York.  He is the controlling person and sole officer and director of Monarch.   
+
+ B. Monarch is a Nevada corporation headquartered in Ozone Park, New York.  Its common stock was registered with the Commission pursuant to Section 12(g) of the Exchange Act from August 1994 through February 1999. 
+
+ C. On April 21, 1997, Monarch entered into stock option agreements with four different consulting companies for public relations services.  The option agreements provided that Monarch would issue a total of one million shares of common stock to the consulting companies at an exercise price of $.01 per share (the "consulting options").   
+
+ D. Also on April 21, 1997, Monarch granted an option for 2,800,000 shares to Anchor Capital Management, Ltd. ("Anchor"), an offshore entity, at a cost of $28,000 with an exercise price of $1.50 per share.  This price, according to Monarch's Form 10-KSB, was established pursuant to arm's length negotiations.   
+
+ E. At the time the option agreements and the Anchor agreement were signed, Monarch's stock was not yet trading publicly.  Trading in its shares began on June 26, 1997, on the OTC Bulletin Board at $1.00 bid, $1.50 ask.   
+
+ F. The exercise price for the consulting options, $.01 per share, was far less than the fair value of the underlying shares, given (1) the $1.50 per share price concurrently granted to Anchor in an arm's length transaction; and (2) the price at which the stock opened for trading.   
+
+ G. In its financial statements for the six month transition period ended June 30, 1997, Monarch failed to include in its statement of operations any expense item that would reflect the difference between the price at which the consulting options were issued and the fair value of the underlying shares at the time they were issued.  These financial statements were included in Monarch's Form 10-KSB which Gurino caused Monarch to file with the Commission on or about October 9, 1997. 
+
+ H. Monarch's failure to record such an expense and include certain disclosures associated with the issuance of the consulting options caused the financial statements of Monarch, as contained in its Form 10-KSB for their transition period ended June 30, 1997, and subsequent filings, to deviate from Generally Accepted Accounting Principles and to materially misrepresent its financial condition and results of operations.   
+
+ I. Gurino signed the option agreements on behalf of Monarch and signed Monarch's periodic filings with the Commission as its responsible accounting person.  On behalf of Monarch, he also provided all relevant financial information to the auditors and signed the management representation letter on which they relied in issuing their audit opinion. 
+
+ J. Gurino caused Monarch to fail to, and Monarch did fail to, make and keep books, records, and accounts which, in reasonable detail, accurately and fairly reflected the transactions and dispositions of the assets of Monarch, as more particularly described in paragraphs III. C. through I. above. 
+
+ K. Gurino caused Monarch to fail to devise and maintain, and Monarch did fail to devise and maintain, a system of internal accounting controls sufficient to provide reasonable assurances that: (1) transactions were executed in accordance with management's general or specific authorization,  (2) transactions were recorded as necessary (i) to permit preparation of financial statements in conformity with GAAP or any other criteria applicable to such statements, and (ii) to maintain accountability for assets as more particularly described in paragraphs III. A. through I. above. 
+
+ L. Gurino and Monarch caused Monarch's books, records or accounts to be falsified, as more particularly described in paragraphs III. A. through I. above. 
+
+ M. By the conduct described in paragraphs A. through L. above, (1) Monarch violated Sections 10(b), 13(a) and 13(b) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13 and 13b2-1 thereunder; and (2) Gurino violated Section 10(b) of the Exchange Act and Rules 10b-5 and 13b2-1 thereunder and caused violations of Sections 13(a) and 13(b) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder. 
+
+ IV. 
+
+   In view of the foregoing, it is appropriate to impose the sanctions agreed to in the Offers submitted by Monarch and Gurino.  Accordingly, 
+
+   IT IS ORDERED, pursuant to Section 21C of the Exchange Act, that Monarch and Gurino cease and desist from committing or causing any violations and any future violations of Sections 10(b), 13(a) and 13(b) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13 and 13b2-1 promulgated thereunder. 
+
+   By the Commission. 
+
+               Jonathan G. Katz
+               Secretary 
+
+  Footnote 
+
+   1     The findings herein are made pursuant to Respondents' offers of settlement and are not binding on any other person or entity in this or any other proceeding. 
+
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1350.txt b/raw/aaer/2000/AAER-1350.txt
new file mode 100644
index 0000000000000000000000000000000000000000..c5cbd29a20ae6a4a11ba7418b351bc64e840e3a0
--- /dev/null
+++ b/raw/aaer/2000/AAER-1350.txt
@@ -0,0 +1,1725 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Microstrategy, Inc. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358546","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Microstrategy, Inc.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Microstrategy, Inc.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No.  43724 / December 14, 2000
+
+  ACCOUNTING AND AUDITING ENFORCEMENT
+ Release No.  1350 / December 14, 2000   
+
+ ADMINISTRATIVE PROCEEDING
+ File No.  3-10388 
+
+   In the Matter of
+		 MICROSTRATEGY, INC.
+		  Respondent.
+		  
+		 ORDER INSTITUTING PUBLIC PROCEEDINGS PURSUANT TO SECTION 21C OF THE SECURITIES EXCHANGE ACT OF 1934, MAKING FINDINGS, REMEDIAL SANCTIONS AND IMPOSING A CEASE-AND-DESIST ORDER 
+	   I. 
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate  that public administrative proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") to determine whether MicroStrategy, Inc. ("MicroStrategy") violated or caused violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder.  1   
+
+ II. 
+
+   In anticipation of the institution of these administrative proceedings, MicroStrategy has submitted an Offer of Settlement ("Offer") that the Commission has determined to accept.  Solely for the purposes of these proceedings and any other proceedings brought by or on behalf of the Commission or to which the Commission is a party, and without admitting or denying the findings contained herein, except as to jurisdiction over it and over the subject matter of these proceedings, which MicroStrategy admits, MicroStrategy consents to the entry of this Order Instituting Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, Remedial Sanctions and Imposing a Cease-and-Desist Order ("Order").  The Commission has determined that it is appropriate to accept the Offer of MicroStrategy and accordingly is issuing this Order.   
+
+   III.
+
+   FACTS 
+
+  Based on the foregoing, the Commission finds that:  2    A. Respondent 
+
+ MicroStrategy, Inc. is a Delaware corporation with principal offices in Vienna, Virginia.  From its IPO on June 11, 1998 to the present, MicroStrategy's common stock was registered pursuant to Section 12(g) of the Exchange Act [15 U.S.C. § 77l(g)] and was quoted on the NASDAQ National Market System. 
+
+ B. Summary 
+
+ From the time of its initial public offering in June 1998 through March 2000, MicroStrategy, Inc., a software company whose securities are listed on NASDAQ, materially overstated its revenues and earnings contrary to Generally Accepted Accounting Principles ("GAAP").  The company's public financial reports during this time showed a growing software and information services company enjoying positive net income.  In fact, as investors later learned, MicroStrategy should have reported net losses from 1997 through the present. 
+
+   The company's restatement reduced revenues over the three-year period by approximately $66 million of the $365 million reported.  Approximately $54 million, or 80%, of these restated revenues were in 1999.  The company's reporting failures primarily derived from its premature recognition of revenue arising from the misapplication of AICPA Statement of Position 97-2 in connection with multiple element deals in which significant services or future products to be provided by MicroStrategy were not separable from the upfront sale of a license to MicroStrategy's existing software products.  Additional restatements resulted from deals in which MicroStrategy had not properly executed contracts in the same fiscal period that revenue was recorded from those deals, as well as other accounting errors. 
+
+   The incorrect financial results were reported in various periodic reports filed with the Commission and disseminated to the investing public from the fourth quarter of 1998 through year-end 1999, and in registration statements filed in connection with a June 1998 initial public offering and a pending public offering filed in February 2000 that was subsequently withdrawn. 
+
+   On March 20, 2000, MicroStrategy announced that it intended to restate its financial results for the fiscal years 1998 and 1999.  MicroStrategy stock, which had recently reached a high of $333 per share, dropped over 60% of its value in one day, dropping from $260 per share to close at $86 per share on March 20, 2000.  The stock price continued to drop in the following weeks.  By April 13, 2000, after MicroStrategy announced that it would also restate its fiscal 1997 financial results, the company's stock closed at $33 per share.  
+
+ C. MicroStrategy's Background 
+
+   MicroStrategy was incorporated in Delaware in November 1989.  The company's primary business in the early years consisted of providing software consulting services to help customers build custom software systems to access, analyze and use information contained in large-scale transaction-level databases.  During 1994 and 1995, MicroStrategy began focusing its efforts on the development and sale of data-mining and decision support software and related products. 
+
+   By 1996 a majority of MicroStrategy's revenues resulted from software license sales.  The company licensed its software through its direct sales force and through value added resellers ("VAR") and original equipment manufacturers ("OEM").  By 1997 sales through VARs and OEMs, sometimes known as "channel partners," accounted for more than 25% of MicroStrategy's total revenues. 
+
+   Since 1996, MicroStrategy's revenues have been derived primarily from three sources: (i) product licenses; (ii) fees for maintenance, technical support and training; and (iii) consulting and development services. 
+
+   Shortly after going public in June 1998, MicroStrategy began in the third quarter 1998 to engage in a series of increasingly larger and more complex transactions involving the sale of software as well as extensive software application development and consulting services. 
+
+   By late 1998, MicroStrategy began developing an information network - initially known as Telepath, now known as Strategy.com - supported by the MicroStrategy software platform.  The network as conceived would deliver personalized finance, news, weather, traffic, travel and entertainment information to individuals through cell phones, fax machines, e-mails, etc.  For a fee, an entity could become a Strategy.com affiliate and offer the Strategy.com channels and services on a co-branded basis directly to their customers and in turn share with MicroStrategy a percentage of the subscription revenues from end-users. 
+
+   During the relevant time period, Strategy.com affiliate deals ranged from the relatively simple purchase of the right to offer customers access to the Strategy.com channels for a flat fee to much more complex transactions involving, in addition to an affiliation with MicroStrategy, a large scale commitment of consulting and development services to build custom information delivery systems. 
+
+ D. Accounting For Software Sales 
+
+   Generally Accepted Accounting Principles require that revenue from the sale of software be recognized consistent with Statement of Position 97-2.  SOP 97-2 contains specific guidance on whether a company may recognize revenue from a software license sale at the time of the sale, or whether the sale must be recognized consistent with contract accounting principles. 
+
+   If an arrangement to deliver software or a software system does not require significant production, modification, or customization, SOP 97-2 specifies that the following four criteria must be met prior to recognizing revenue for a single-element arrangement or for amounts allocated to individual elements of a multiple-element arrangement: (i) persuasive evidence of an arrangement, (ii) delivery has occurred, (iii) vendor's fee is fixed or determinable, and (iv) collectibility is probable. 
+
+   SOP 97-2 further requires that if the software being licensed requires significant production, modification, or customization or any of the above four criteria are not present the company may not recognize revenue from the software or software system at the time of the transaction but instead must apply contract accounting. 
+
+   Where the software transaction contains multiple-elements (i.e., software, upgrades/enhancements and/or consulting services) SOP 97-2 provides guidance concerning when the software license component may be considered a separate element and thus permit the company to recognize some revenue at the time of the transaction.  SOP 97-2 provides that when an arrangement contains multiple-elements, the company must also assess whether the services being sold as part of the arrangement are considered by the customer to be integral to the functionality of the software product license component.  If the company determines that the service component of the arrangement is integral to the functionality of the software license component, the company must apply contract accounting. 
+
+   MicroStrategy's Form 10-K and Annual Report for the fiscal year-end December 31, 1998 and subsequent public filings all stated that "subsequent to December 31, 1997, the Company began recognizing revenue in accordance with SOP 97-2, `Software Revenue Recognition'."  In addition, MicroStrategy's internal revenue recognition policy in effect during the relevant time period stated that the company recognized revenue in accordance with SOP 97-2.  MicroStrategy, however, had not complied with SOP 97-2, instead recognizing revenue earlier than allowed under GAAP. 
+
+ E. Accounting Errors 
+
+    Contract Signing By MicroStrategy  
+
+   As is common in the software industry, the majority of MicroStrategy's transactions closed in the final days of the fiscal period.  As a result, at the end of a quarter MicroStrategy's contracts department received numerous contracts signed by customers that needed (according to company policy) to be signed by MicroStrategy. 
+
+   To maintain maximum flexibility to achieve the desired quarterly financial results, MicroStrategy held, until after the close of the quarter, contracts that had been signed by customers but had not yet been signed by MicroStrategy.  Only after MicroStrategy determined the desired financial results were the unsigned contracts apportioned, between the just-ended quarter and the then-current quarter, signed and given an "effective date."  In some instances, the contracts were signed without affixing a date, allowing the company further flexibility to assign a date at a later time. 
+
+   GAAP and MicroStrategy's own accounting policies required the signature of both MicroStrategy and the customer prior to recognizing revenue.   
+
+  Other Contracts Not Signed by Quarter Close  
+
+   In at least three instances, MicroStrategy recognized revenue on transactions that were not completed or signed by either party prior to the close of the quarter.  On December 31, 1999, MicroStrategy was engaged in final negotiations with Primark Corporation, a Massachusetts based financial, economic and market research information company.  Sometime prior to midnight negotiations broke down over an issue that was not resolved until the following week.  Although neither the Primark representative nor MicroStrategy signed the final contract until the week of January 3, 2000, $5 million was recognized by MicroStrategy in its quarter ended December 31, 1998.  As discussed below, the Primark transaction was ultimately restated due to a misapplication of the multiple-element transaction requirements of SOP 97-2.  Revenue improperly recognized from this contract was material to MicroStrategy's reported financial results for the quarter. 
+
+   Similarly, on September 30, 1999, the last day of MicroStrategy's 1999 third quarter, negotiations with NCR Corporation over a $27.5 million transaction continued past midnight.  MicroStrategy signed the final contract sometime in the early hours of October 1, 1999.  Although the contract had not been signed by the end of the quarter, MicroStrategy recognized $17.5 million in revenue from the transaction in the quarter ended September 30, 1999.  The NCR transaction was ultimately restated due to a misapplication of SOP 97-2's provisions regarding the delivery of future products in a multiple-element arrangement.  Revenue improperly recognized from this contract was material to MicroStrategy's reported financial results for the quarter. 
+
+   For the quarter ended March 31, 1999, MicroStrategy recognized $956,000 in revenue from a contract with Choicepoint, Inc. that had been signed by Choicepoint on April 2, 1999 but dated March 31, 1999.  Revenue improperly recognized from this contract was material to MicroStrategy's reported financial results for the quarter. 
+
+   Accounting for Multiple Element Transactions  
+
+   After the IPO, MicroStrategy's business moved increasingly away from the straight-forward sale of software toward multi-faceted increasingly complex transactions with extensive service obligations. 
+
+   Generally for accounting purposes, product revenue is recognized immediately, while revenue from services is recognized as the services are provided.  Consistent with SOP 97-2, in a transaction with software and service elements, revenue is recognized on the software only if the software sale is separable from the sale of services and only after revenue attributable to the service element is deducted.   In a number of the restated transactions, MicroStrategy improperly (i) separated product license sales from service elements, and (ii) characterized revenue in multiple element transactions as product or software revenue and recognized it at the time of the transaction. 
+
+   For example, in the fourth quarter of 1998, MicroStrategy negotiated a $4.5 million transaction with ShopKo Stores, Inc. to provide software licenses as well as, among other things, extensive consulting and development services and a warrant permitting ShopKo to purchase 50,000 shares of MicroStrategy common stock.  The services were, in part, to develop software applications for the MicroStrategy software platform.  The overwhelming majority of the software licenses purchased by Shopko were to be used in conjunction with the to-be-developed applications.  Although the product and the service elements were interdependent, MicroStrategy accounted for the software product element as though it were separate from the service and warrant obligations.  In addition, MicroStrategy recognized the entire $4.5 million received in the transaction as software product license revenue, allocating no revenue to the extensive service obligations or the warrant.  The $4.5 million in revenue improperly recognized was material to MicroStrategy's reported financial results for the quarter. 
+
+   In the fourth quarter of 1999, MicrStrategy negotiated a multiple element transaction with Exchange Applications, Inc. which included, among other things, software and extensive consulting and development service elements.  The focus of the transaction was the development of "Customer Relationship Management" software and applications leveraging existing MicroStrategy and Exchange Applications software technology.  Exchange Applications agreed to pay MicroStrategy $65 million dollars for the: (i) right to resell MicroStrategy's product line as a VAR; (ii) consulting and development services of a dedicated business unit of MicroStrategy employees; and (iii) intellectual property rights to product developed by the dedicated business unit.  Again, MicroStrategy improperly separated the software product element of the transaction from the service component and as a result recognized $14.1 million in the fourth quarter of 1999.  The $14.1 improperly recognized was material to MicroStrategy's reported financial results for the quarter. 
+
+  Strategy.com Transactions  
+
+   The Strategy.com transactions combine similar service and software elements and thus presented similar revenue recognition issues as those discussed in the preceding section. 
+
+     In the fourth quarter of 1998, when the company began to sell the first Strategy.com affiliations, Strategy.com was in the development stage.  At the time, only a single preliminary version of a finance channel existed.  For the affiliation fee, the affiliate had access to certain MicroStrategy software for the limited purpose of providing access to the Strategy.com network. This software was not delivered to the affiliate, nor did the affiliate have the ability to use the software outside the context of the network.  MicroStrategy, in essence, hosted the network.  Since there was little initially to host or to offer affiliate subscribers, many of the early Strategy.com transactions had a development component - some required that MicroStrategy develop additional or specialized channels, others required the development of customized applications for the channels.  These often involved additional software, licenses and services. MicroStrategy improperly recognized revenue up front on certain Strategy.com transactions by improperly characterizing transactions as the sale of software product. 
+
+   For example, in the second quarter of 1999, MicroStrategy recognized $6 million in product revenue from a Strategy.com transaction with Ameritrade Holding Corporation.  As part of the arrangement, MicroStrategy agreed to develop customized systems for Ameritrade to provide certain channels to its customers.  Ameritrade also purchased from MicroStrategy the software product licenses necessary in order to eventually provide its customers with access to the to-be-developed applications.  Since the service element of the transaction was not separable from the software element, MicroStrategy should have recognized revenue over the term of the contract.  Instead, MicroStrategy characterized the entire $6 million received from Ameritrade at the time of the transaction as software product license and recognized it at the time of the transaction. The $6 million in revenue improperly recognized was material to MicroStrategy's reported financial results for the quarter. 
+
+   The same issue arises in several other Strategy.com deals, including Metrocall, Inc. in the fourth quarter of 1998, and Primark in the fourth quarter of 1999.  In each of these transactions, MicroStrategy was obligated to provide services related to the development or delivery of channels.  In both cases, MicroStrategy improperly recognized the full contract revenue ($1 million for Metrocall, $5 million for Primark) as product revenue, rather than recognizing the revenue over the term of the agreement. 
+
+  Other Accounting Issues  
+
+   MicroStrategy's financial statements suffered from other revenue recognition problems.  For example, MicroStrategy's agreement with NCR included a license to "all current and future generally available software products in MicroStrategy's product line."  Because a company cannot provide "Vendor Specific Objective Evidence" of the fair market value for unspecified future products, SOP 97-2 requires the application of contract accounting to arrangements containing unspecified future product obligations.  The $17.5 million in revenue improperly recognized from this transaction was material to MicroStrategy's reported financial results for the third quarter of 1999. 
+
+ In the third quarter of 1999, MicroStrategy recognized $5 million of revenue from a transaction with Sybase, Inc. in which the two companies essentially swapped $5 million of software.  Consistent with GAAP, this transaction should have been accounted for as a barter transaction and would have resulted in no revenue being recognized until such time as the software was used by MicroStrategy internally or was sold to another party.  The $5 million in revenue improperly recognized was material to MicroStrategy's reported financial results for the quarter. 
+
+     In the first quarter of 1999, MicroStrategy entered into an arrangement with KMart Corporation to provide software licenses, maintenance and services.  In connection with the transaction, the sales staff issued a side letter to KMart promising the delivery of future product at no cost.  MicroStrategy improperly recognized approximately $2.3 million in revenue that quarter. The revenue was later deferred since the value of the future product could not be determined and the product had yet to be delivered.  The $2.3 million in revenue improperly recognized was material to MicroStrategy's reported financial results for the quarter. 
+
+   F. MicroStrategy's Share Price 
+
+   MicroStrategy's June 12, 1998 IPO was priced at $6 per share (adjusting for a January 2000 2 for 1 stock split) and on the first day of trading the shares rose approximately $4.50.  During January 1999, MicroStrategy shares traded in a range between $15 and $18 per share.  The shares continued to trade in this range through September 1999.  During the first week of October 1999, MicroStrategy shares rose to between $30 and $35 per share and by mid-December the shares traded for more than $110 per share.  MicroStrategy shares continued to rise, eventually reaching $333 per share on March 10, 2000. 
+
+ G. MicroStrategy's Reported Financial Results and Restatement 
+
+   On March 20, 2000 MicroStrategy announced that it would restate its reported financial results for the fiscal years 1998 and 1999.  MicroStrategy thereafter restated its reported financial results for the fiscal years 1997, 1998 and 1999 as follows: 
+
+     
+		  Revenue  (In thousands) 
+		  Net Income  
+	   Reporting period 
+		 Original 
+		 Restated 
+		 Original 
+		 Restated 
+	    Year ended:  
+		   
+	   December 31, 1997 
+		 53,557 
+		 52,551 
+		 121 
+		 (885) 
+	    Quarter ended:  
+		   
+	   March 31, 1998 
+		 19,895 
+		 19,160 
+		 542 
+		 (193) 
+	   June 30, 1998 
+		 23,790 
+		 21,138 
+		 942 
+		 (1,133) 
+	   September 30, 1998 
+		 27,014 
+		 25,960 
+		 1,928 
+		 2,055 
+	   December 31, 1998 
+		 35,731 
+		 29,231 
+		 2,766 
+		 (2,984) 
+	    Year ended:  
+		   
+	   December 31, 1998 
+		 106,430 
+		 95,489 
+		 6,178 
+		 (2,255) 
+	    Quarter ended:  
+		   
+	   March 31, 1999 
+		 35,784 
+		 29,322 
+		 1,859 
+		 (3,804) 
+	   June 30, 1999 
+		 45,638 
+		 40,465 
+		 3,211 
+		 (3) 
+	   September 30, 1999 
+		 54,555 
+		 35,309 
+		 3,794 
+		 (12,774) 
+	   December 31, 1999 
+		 69,352 
+		 46,162 
+		 3,756 
+		 (17,162) 
+	    Year ended:  
+		   
+	   December 31, 1999 
+		 205,329 
+		 151,258 
+		 12,620 
+		 (33,743) 
+	   IV.
+
+ LEGAL DISCUSSION 
+
+ A. MicroStrategy Violated the Reporting Provisions of the Exchange Act 
+
+   Section 13(a) of the Exchange Act requires issuers to file such annual and quarterly reports as the Commission may prescribe and in conformity with such rules as the Commission may promulgate.  Rules 13a-1 and 13a-13 require the filing of annual and quarterly reports that comply with the Commission's Regulation S-X, which requires that financial statements be presented in conformity with GAAP.   
+
+   As described above, the periodic reports and registration statements filed by MicroStrategy between June 1998 and January 2000 were not in conformity with GAAP.  Consequently, MicroStrategy violated Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder.   
+
+ B. MicroStrategy Violated the Record-Keeping and  
+
+   Internal Controls Provisions of the Exchange Act 
+
+             Section 13(b)(2)(A) of the Exchange Act requires public companies such as MicroStrategy to make and keep books and records which accurately and fairly reflect its transactions and dispositions of assets.  As discussed above, MicroStrategy failed to keep accurate books and records reflecting, among other things, the quarter in which revenue was recognized and the amount of recognizable revenue. MicroStrategy violated Section 13(b)(2)(A) of the Exchange Act. 
+
+ Section 13(b)(2)(B) of the Exchange Act requires MicroStrategy to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurance that, among other things, transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain accountability of assets.  As described above, MicroStrategy's internal accounting controls were inadequate.  Specifically, MicroStrategy routinely affixed earlier dates to contracts signed after the close of a quarter and had inadequate procedures to ensure appropriate revenue recognition in conformity with GAAP.  Thus, MicroStrategy violated Section 13(b)(2)(B) of the Exchange Act. 
+
+ V. 
+
+   The Commission finds that MicroStrategy violated Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder. 
+
+ VI. 
+
+   ACCORDINGLY, IT IS HEREBY ORDERED, pursuant to Section 21C of the Exchange Act, that MicroStrategy: 
+
+     Cease and desist from committing or causing any violations and any future violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder; and
+
+       Comply with, and take steps to effect future compliance with, Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder upon such terms and conditions as MicroStrategy has undertaken to implement the following:    Corporate Governance Undertakings 
+
+    1. Corporate Governance and Audit Committee Composition 
+
+   MicroStrategy's Board of Directors currently includes Saylor, Bansal and four independent directors.  MicroStrategy shall add one additional independent director to the Board who is independent of the company and is not objectionable to the Commission.  The new director shall have prior experience as a Chief Financial Officer of a public company (or other officer primarily responsible for external financial reporting) or as a member of an Audit Committee of a public company. 
+
+   2. Non-Management Board Members Departures 
+
+   MicroStrategy shall for a period of three years report to the Commission within ten days on the full facts and circumstances surrounding the departure (for any reason whatsoever) of any non-management member of the Board of Directors including, but not limited to, any disagreements with the departing director on accounting principles, practices or procedures employed by MicroStrategy or over the quality of MicroStrategy's internal control environment.  The statement shall be shown to the departing director before its submission to the Commission and the departing director shall be given the opportunity to comment to the Commission on the statement. 
+
+   3. Audit Committee and Charter Enhancements 
+
+   MicroStrategy shall adopt an updated charter for the Audit Committee consistent with the recommendations of the Blue Ribbon Committee on Improving the Effectiveness of Corporate Audit Committees and the Commission's recently adopted rules on Audit Committee disclosure.  The Charter shall include provisions relating to: 
+
+     the independence of Audit Committee members;
+
+     the oversight responsibilities of the Audit Committee, including those with respect to the positions and functions of the Chief Financial Officer and Director of Internal Audit; and
+
+     the reporting obligations of the Audit Committee under Item 306 of Regulation S-K and Item7(e)(3) of Schedule 14(a).    Management Undertakings  
+
+   MicroStrategy shall add to its management a Director of Internal Audit.  In addition, MicroStrategy shall create an Internal Audit Department appropriate for the size and business.  The Director of Internal Audit shall be an individual with appropriate qualifications and experience for the position and shall be hired after consultation with and approval by the Audit Committee. 
+
+  Compliance Undertakings  
+
+   1. Corporate Code of Conduct 
+
+   MicroStrategy shall adopt and implement through a comprehensive worldwide training effort a Code of Conduct appropriate for the Company's size and business within 30 days of the date of these undertakings.  Prior to its adoption the Code of Conduct shall be reviewed and approved by the Board of Directors. 
+
+   The Code of Conduct shall at a minimum include policies relating to financial reporting, documentation of transactions, confidentiality of Company information, compliance with the Foreign Corrupt Practices Act, transactions in Company securities and communications with investors, analysts and the media about Company matters.  The Code of Conduct shall also contain procedures by which employees may report suspected violations of the Code of Conduct or other Company policies. 
+
+   The Company shall require that each officer, director and employee sign a certification of compliance with the Code of Conduct on an annual basis. 
+
+   2. Global Revenue Recognition Policy 
+
+   MicroStrategy shall adopt and implement a Global Revenue Recognition Policy within 30 days of the date of these undertakings.  The Policy shall include procedures to ensure compliance with U.S. generally accepted accounting principles including, but not limited to, AICPA Statement of Position 97-2 and any future amendments. 
+
+   3. Contract Approval, Execution and Processing Policy and Procedures 
+
+   MicroStrategy shall adopt and implement Contract Approval, Execution and Processing Policies and Procedures within 60 days of the date of these undertakings.  The policy shall require the development of standard contract forms complying in all respects with the Company's Global Revenue Recognition Policy and will establish procedures for the Chief Financial Officer's approval prior to execution of any non-standard agreement.  The policy shall reflect the requirement in the Company's Global Revenue Recognition Policy that all material terms of all contracts (except purchase orders issued against previously executed reseller or other similar agreements) shall be signed by all parties to the transaction at least by the end of the period in which revenue on the contract will be recognized.  The Policy shall also, at a minimum: 
+
+     formalize procedures governing the signing and dating of contracts, including the creation and maintenance of a contract signature log to track contracts through the approval and execution process,
+
+     establish procedures requiring the delivery of contracts signed by all parties (or valid purchase orders) to the appropriate accounting personnel prior to revenue recognition, invoicing or delivery of software, and
+
+     implement procedures for the retention of all necessary contract documents, including drafts and correspondence.   4. Comprehensive Policies and Procedures Manual 
+
+   MicroStrategy shall adopt and implement within 90 days of the date of these undertakings a Comprehensive Policies and Procedures Manual for its accounting, finance, contracts and other related operations personnel.  In addition to the Global Revenue Recognition Policy and the Contract Approval, Execution and Processing Policies and Procedures described above, the Manual shall include polices and procedures relating to the following: 
+
+     reporting and review of material transactions entered into by the Company's foreign subsidiaries,
+
+     establishment and documentation of subjective reserves and allowances,
+
+     bank, payroll and other account reconciliation,
+
+     fixed asset inventories, accounting and security,
+
+     customer credit policies and due diligence,
+
+     collections and accounts receivable,
+
+     non-monetary, barter or reciprocal arrangements,
+
+     documentation or controls relating to reseller arrangements, and 
+
+     documentation of estimates used in contract accounting and other accounting areas dependent on estimates.   5. Training and Education on Policies and Procedures 
+
+   MicroStrategy shall provide all officers, directors and employees subject to the policies and procedures in these undertakings with the necessary training and education on the new policies and procedures.  In addition to the provision of the policies and procedures, together with relevant background materials, such training and education will include, at a minimum, both initial training sessions immediately following adoption of the policy (as part of the implementation process) and annual training updates. 
+
+  Compliance with the Undertakings  
+
+   The new independent member of the Board of Directors, appointed pursuant to these undertakings, shall review the Company's implementation of and compliance with these undertakings.  The new director's review shall begin no earlier than six months from the date of these undertakings and the new director shall report the results of the review to the Company and the Commission within three months after the start of the review. 
+
+ By the Commission. 
+
+                     Jonathan G. Katz
+                 Secretary 
+
+  Footnotes 
+
+   1    This matter is related to   SEC v. Michael Jerry Saylor, Sanjeev Kumar Bansal and Mark Steven Lynch  , (Civ. Action No. 1:00CV02995) and   In the Matter of Antoinette A. Parsons and Stacy L. Hamm   (Admin Proc. No. 3-10389). 
+
+   2    The findings herein are made pursuant to the Respondent's Offer and are not binding on any other person or entity in this or any other proceeding. 
+
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1352.txt b/raw/aaer/2000/AAER-1352.txt
new file mode 100644
index 0000000000000000000000000000000000000000..10c273c4fe5528f21f0755832fb97199558acefb
--- /dev/null
+++ b/raw/aaer/2000/AAER-1352.txt
@@ -0,0 +1,1376 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Michael Jerry Saylor, Sanjeev Kumar Bansal and Mark Steven Lynch 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484661","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              Michael Jerry Saylor, Sanjeev Kumar Bansal and Mark Steven Lynch
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Michael Jerry Saylor, Sanjeev Kumar Bansal and Mark Steven Lynch
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              U.S. Securities and Exchange Commission
+ Washington, D.C 
+
+
+
+ Litigation Release No.  16829 / December 14, 2000   SEC Files Settled Case Against Three Executive Officers of Microstrategy Inc., Obtaining Injunctions, $10 Million in Disgorgement and $ 1 Million in Penalties 
+  SEC v. Michael Jerry Saylor, Sanjeev Kumar Bansal and Mark Steven Lynch , Civ. Action No. 1:00CV02995 (D.D.C.)(filed Dec. 14, 2000) 
+ Accounting and Auditing Enforcement Release No. 1352 / December 14, 2000 
+
+
+
+   The Securities and Exchange Commission filed today a settled civil injunctive action against MicroStrategy Inc.'s top three officers:  Michael Saylor (co-founder and chief executive officer), Sanjeev Bansal (co-founder and chief operating officer) and Mark Lynch (former chief financial officer).  The complaint alleges that from the time of its initial public offering in June 1998 through March 2000, MicroStrategy, a Vienna, Virginia-based software company whose securities are listed on NASDAQ, materially overstated its revenues and earnings from the sales of software and information services contrary to Generally Accepted Accounting Principles.  The company's public financial reports during this time showed positive net income.  In fact, the Commission alleged, MicroStrategy should have reported net losses from 1997 through the present. 
+
+ Without admitting or denying the Commission's allegations, the defendants consented to the entry of a final judgment permanently enjoining each of them from violating the antifraud and record-keeping provisions of the federal securities laws (Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5 and 13b2-1 thereunder), ordering them to pay disgorgement totaling $10 million (Saylor -- $8,280,000, Bansal -- $1,630,000, Lynch -- $138,000) and ordering each to pay a $350,000 civil penalty.  Lynch, the former chief financial officer, also consented to the entry of an administrative order pursuant to Commission Rule 102(e)(3) based on the entry of an injunction, barring Lynch from practicing before the Commission as an accountant, with a right to reapply after three years.
+
+    The complaint alleges that the company's reporting failures primarily derived from its premature recognition of revenue inconsistent with AICPA Statement of Position 97-2, which allows revenue to be recognized from software sales if persuasive evidence of an agreement exists, delivery has occurred, the vendor's fee is fixed and determinable, and collectibility is probable.  If the sale contains other elements (such as software upgrades, enhancements, or consulting services) that are integral to the functionality of the software license, the company must apply contract accounting, which delays revenue recognition.  The Commission alleges that in connection with certain multiple element deals in which significant services or future products to be provided by MicroStrategy were not separable from the sale of a license, MicroStrategy improperly recognized material amounts of revenue upfront.  Additional restatements resulted from deals in which MicroStrategy had not properly executed contracts in the same fiscal period that revenue was recorded from those deals, as well as other accounting errors. 
+
+   The incorrect financial results were reported in various periodic reports filed with the Commission and disseminated to the investing public from the fourth quarter of 1998 through year-end 1999, and in registration statements filed in connection with a June 1998 initial public offering and a pending public offering filed in February 2000 that was subsequently withdrawn. 
+
+   On March 20, 2000, MicroStrategy announced that it intended to restate its financial results for the fiscal years 1998 and 1999.  MicroStrategy stock, which had recently reached a high of $333 per share, dropped over 60% of its value in one day, dropping from $260 per share to close at $86 per share on March 20, 2000.  The stock price continued to drop in the following weeks.  By April 13, 2000, after MicroStrategy announced that it would also restate its fiscal 1997 financial results, the company's stock closed at $33 per share.  The company's restatement reduced revenues over the three-year period by approximately $66 million of the $365 million reported.  Approximately $54 million, or 80%, of these restated revenues were in 1999. 
+
+   The Commission alleges that Lynch, the company's chief financial officer, was principally responsible for ensuring the veracity of MicroStrategy's financial reporting and signed the company's periodic reports.   Saylor, the company's founder, controlling shareholder, and top executive officer, signed the periodic reports and participated in the negotiation of several of the largest restated deals.  Bansal, the company's co-founder, participated in the negotiation of several of the restated deals and signed numerous contracts on which revenue was improperly recognized.
+
+    The Commission simultaneously instituted a settled administrative proceeding against MicroStrategy ordering the company to cease and desist from violating the reporting, books and records and internal controls provisions of the federal securities laws (Sections 13(a), 13(B)(2)(A) and (B) of the Exchange Act and Rules 13a-1 and 13a-13, thereunder), and to engage in certain undertakings to effect future compliance with those provisions.   In the Matter of MicroStrategy, Inc. , Admin. Proc. No. 3-10388.  The Commission also instituted a settled order against MicroStrategy's corporate controller and accounting manager in which the respondents each consented to the entry of a cease-and-desist order prohibiting violations of 13(a) of the Exchange Act and Rules 13a-1, 13a-13 and 13b2-1 thereunder.   In the Matter of Antoinette A. Parsons and Stacy L. Hamm , Admin. Proc. No. 3-10389. 
+
+   The investigation is continuing as to other parties. 
+ 
+
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1353.txt b/raw/aaer/2000/AAER-1353.txt
new file mode 100644
index 0000000000000000000000000000000000000000..791e529600afd574baed3e256aa65d96b0c4ecbf
--- /dev/null
+++ b/raw/aaer/2000/AAER-1353.txt
@@ -0,0 +1,1478 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | Craig Consumer Electronics, Inc. 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358556","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              Craig Consumer Electronics, Inc.
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        Craig Consumer Electronics, Inc.
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ SECURITIES EXCHANGE ACT OF 1934
+ Release No. 43715/ December 13, 2000 
+
+ Accounting and Auditing Enforcement Release No. 1353 
+
+ ADMINISTRATIVE PROCEEDING
+ File No. 3-10315 
+
+   In the Matter of
+		 CRAIG CONSUMER ELECTRONICS,
+		 INC. 
+		  Respondent.
+		  
+		   ORDER MAKING FINDINGS AND IMPOSING SANCTION BY DEFAULT 
+	    Background  
+
+   The Securities and Exchange Commission (Commission) initiated this proceeding on September 27, 2000, by an Order Instituting Proceeding (OIP), issued pursuant to Section 12(j) of the Securities Exchange Act of 1934 (Exchange Act).  The OIP sets out allegations by the Division of Enforcement (Division) charging Respondent Craig Consumer Electronics, Inc. (Craig) with violating Section 13(a) of the Exchange Act and Rules 13a-1, 13a-13 and 12b-20 thereunder.  The OIP was served on Craig's registered agent on October 4, 2000.  (Div. Ex. 1.)  1    Craig has not answered the OIP. 
+
+ The Division filed a "Status Report" on October 13, 2000, which included the Declaration of Roger D. Boudreau, a staff accountant at the Commission's Pacific Regional Office.  Mr. Boudreau conducted an investigation and concluded that Craig "no longer exists as an active corporation."  The Division requested that I postpone the hearing because it believed that no representative of Craig would appear.  Craig's registered agent was served with a copy of the Status Report on October 20, 2000.  2    (Div. Ex. 2.)   
+
+ On October 17, 2000, I issued an Order Scheduling Prehearing (Prehearing Order) for November 6, 2000, at 12:30 p.m.  The Commission's records indicate that the Office of the Secretary received confirmation that a representative of Craig received a copy of the Prehearing Order on October 31, 2000.  Craig was not represented at the telephonic prehearing conference on November 6, 2000.   (Tr. 2-3.)  
+
+ On November 17, 2000, the Division filed a Motion for Default and Supporting Brief of Points and Authorities (Motion for Default) pursuant to Commission Rule 155(a).  17 C.F.R. § 201.155(a).  The service list shows that a copy was sent to Craig's registered representative.  No response was received from Craig. 
+
+  Findings  
+
+   Craig is in default because it failed to answer the OIP, it did not appear at the prehearing conference, and it did not respond to a dispositive motion, the Motion for Default, within the time provided.   See  Commission Rules 155(a)(2) and 220(f), 17 C.F.R. §§ 201.155(a), .220(f).  Accordingly, I find that:  3   
+
+   1. Craig is a Delaware corporation whose common stock is registered with the Commission pursuant to Section 12(g) of the Exchange Act. 
+
+   2. Craig failed to file annual reports on Form 10-K and quarterly reports on Form 10-Q since the fiscal quarter that ended March 31, 1997, in violation of Section 13(a) of the Exchange Act and Rules 13a-1 and 13a-13 thereunder. 
+
+   3. Craig materially misrepresented its precarious financial position and severe liquidity problems through its annual reports on Form 10-K and second and third quarter reports on Form 10-Q for the fiscal year that ended December 31, 1996, and its first quarter report for the fiscal year that ended December 31, 1997, in violation of Section 13(a) of the Exchange Act and Rules 13a-1, 13a-13 and 12b-20 thereunder. 
+
+   4. Craig failed to conform to Generally Accepted Accounting Principles by improperly recognizing and reporting sales of defective merchandise thus materially overstating revenues and understating its pre-tax loss through its first quarter report (Form 10-Q) for the fiscal year that ended December 31, 1997, in violation of Section 13(a) of the Exchange Act and Rules 13a-1, 13a-13 and 12b-20 thereunder.  
+
+   5. Craig filed a voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code on August 1, 1997.  (Div. Ex. 3 at 82, Div. Ex. 4.)  Craig's reorganization efforts were unsuccessful, and the company's assets were liquidated in a process that was completed in January 1998.  (Div. Ex. 3 at 82-83.)  The U.S. Bankruptcy Court for the Central District of California closed the bankruptcy proceeding on August 8, 1998.  (Div. Ex. 4.)  
+
+       Based on these violations of Section 13(a) of the Exchange Act and Rules 13a-1, 13a-13 and 12b-20, I find it necessary for the protection of investors to revoke the registration of Craig pursuant to Section 12(j) of the Exchange Act. 
+
+  ORDER  
+
+   It is ORDERED that the registration pursuant to Section 12(g) of the Exchange Act of the common stock of Craig Consumer Electronics, Inc. is revoked.  
+
+  Brenda P. Murray
+ Chief Administrative Law Judge 
+
+  Footnotes 
+
+
+   1     (Tr. __) refers to the transcript of the prehearing conference.  I will refer to the Exhibits attached to the Division's Motion for Default and Supporting Brief of Points and Authorities as (Div. Ex. __). 
+
+   2      The date on the exhibit is unreadable.  I accept declarant's representation.  Declaration of E. David Hwa In Support of Motion for Default.  
+
+   3     The findings in this order are made pursuant to Craig's default and are not binding on any other person in any other proceeding. 
+
+
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1355.txt b/raw/aaer/2000/AAER-1355.txt
new file mode 100644
index 0000000000000000000000000000000000000000..6c0644a6058027098a3bfa62e98cc65c1c8d518f
--- /dev/null
+++ b/raw/aaer/2000/AAER-1355.txt
@@ -0,0 +1,1513 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | International Business Machines Corporation 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/358506","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                          
+  
+           
+                     
+         
+           Information for Respondents in Administrative Proceedings  
+         
+                             
+                       
+         
+           Open Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Closed Litigated Administrative Proceedings 
+         
+                             
+                       
+         
+           Commission Opinions and Adjudicatory Orders 
+         
+                             
+                       
+         
+           Delinquent Filings 
+         
+                             
+                       
+         
+           Stop Orders 
+         
+                             
+               
+  
+                       
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Administrative Proceedings 
+           
+       
+              International Business Machines Corporation
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        International Business Machines Corporation
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+             
+
+ Securities Exchange Act of 1934
+ Release No.  43761 / December 21, 2000     
+
+ Accounting and Auditing Enforcement
+ Release No.   1355 / December 21, 2000 
+
+ Administrative Proceeding
+ File No. 3-10397 
+
+   In the Matter of  
+		INTERNATIONAL BUSINESS 
+		MACHINES CORPORATION,  
+		Respondent.
+		 
+		 ORDER INSTITUTING PROCEEDINGS PURSUANT TO SECTION 21C THE SECURITIES EXCHANGE ACT
+OF 1934, MAKING FINDINGS, AND IMPOSING A CEASE-AND-DESIST ORDER 
+	   I. 
+
+   The Securities and Exchange Commission ("Commission") deems it appropriate that public administrative proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") against International Business Machines Corporation ("IBM"). 
+
+ II. 
+
+   In anticipation of the institution of these proceedings, IBM has submitted an Offer of Settlement ("Offer") that the Commission has determined to accept.  As set forth in the Offer, IBM admits the jurisdiction of the Commission over it and over the subject matter of this proceeding.  Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission, or to which the Commission is a party, and prior to a hearing and without admitting or denying the findings contained herein, IBM consents to the entry of this Order Instituting Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order ("Order").  The Commission has determined that it is appropriate to accept the Offer from IBM, and accordingly is issuing this Order. 
+
+ III. 
+
+  FINDINGS  
+
+   Based on the foregoing, the Commission finds that: 
+
+   A.    Respondent  
+
+    International Business Machines Corporation  is a New York corporation with its headquarters in Armonk, New York.  The common stock of IBM is registered with the Commission pursuant to Section 12(b) of the Exchange Act and is listed on the New York Stock Exchange.  
+
+   B.  Other Relevant Entities and Persons  
+
+    IBM-Argentina, S.A.  ("IBM-Argentina") is an indirectly wholly-owned subsidiary of IBM with its headquarters in Buenos Aires, Argentina.  IBM-Argentina reports to IBM through the Latin America division of IBM-World Trade Corporation, which division is now headquartered in Miami, Florida. 
+
+    Banco de la Nacion Argentina  ("BNA") is a government-owned commercial bank in Argentina.  BNA entered into a $250 million systems integration contract with IBM-Argentina in 1994 (the "Contract"). 
+
+    Capacitacion Y Computacion Rural, S.A.  ("CCR") is an Argentine corporation that was a subcontractor to IBM-Argentina on the BNA Contract. 
+
+    Gustavo Soriani  ("Soriani") was IBM-Argentina's Vice President of Operations until his termination in September 1995.  He resides in Argentina and is a citizen of that country.  
+
+    Ricardo Martorana  ("Martorana") was IBM-Argentina's General Manager until his resignation in September 1995.  He resides in Argentina and is a citizen of that country.  
+
+    Javier Orcoyen  ("Orcoyen") was IBM-Argentina's Vice President of Finance until his resignation in September 1995.  He resides in Argentina and is a citizen of that country.  
+
+   Soriani, Martorana and Orcoyen were, at the time of their departure, the three highest ranking officials at IBM-Argentina and are referred to herein collectively as "IBM-Argentina's Former Senior Management." 
+
+   C.  Facts  
+
+   This matter involves violations of the books and records provisions of the Exchange Act, arising out of presumed illicit payments to foreign officials during 1994.  As described below, in connection with the Contract, IBM-Argentina's Former Senior Management caused IBM-Argentina to enter into a subcontract with CCR (the "Subcontract"), and money paid to CCR by IBM-Argentina in connection with the Subcontract was apparently subsequently paid by CCR to certain BNA officials. 
+
+   In January 1994, IBM-Argentina submitted a proposal to BNA for a system to modernize and fully integrate the computers in its main and branch offices.  In February 1994, BNA awarded the Contract to IBM-Argentina.  The Contract was one of IBM-Argentina's largest contracts.  Without the knowledge or approval of any IBM employee in the United States, IBM-Argentina's Former Senior Management caused IBM-Argentina to enter into the Subcontract with CCR.  1    During 1994 and 1995, IBM-Argentina paid CCR approximately $22 million under the Subcontract, of which at least $4.5 million was transferred to several BNA directors by CCR. 
+
+   In connection with the Subcontract, IBM-Argentina's Former Senior Management overrode IBM procurement and contracting procedures, and hid the details of the Subcontract from the technical and financial review personnel assigned to the Contract.  Although IBM's procurement procedures specified that a Procurement department employee should have performed and documented certain reviews in connection with the Subcontract,  2   those procedures were overridden by IBM-Argentina's Former Senior Management by providing the Procurement department with fabricated documentation, including a backdated authorization letter and a document that stated incomplete and inaccurate reasons for hiring CCR.  IBM-Argentina's Former Senior Management were able to bypass IBM-Argentina's established procurement review procedures and caused the issuance of a purchase order for CCR's services.  Based on these documents, IBM-Argentina paid CCR approximately $22 million. 
+
+   IBM-Argentina recorded the payments to CCR in its books and records as third-party subcontractor expenses.  While IBM did not falsify or destroy any records, in consolidating its subsidiaries' financial results, and without the knowledge or approval of any employee in the United States, this information was incorporated into IBM's 1994 Form 10-K, which was filed with the Commission on March 23, 1995. 
+
+   After IBM officials learned that its policies and procedures had been circumvented by IBM-Argentina's Former Senior Management, the company took immediate corrective action.  Among other things, Soriani was terminated from his position at IBM-Argentina, Martorana and Orcoyen were asked to, and did, resign from their positions at IBM-Argentina, and all future payments to CCR under the Subcontract were stopped.  IBM also enhanced its internal controls with respect to Foreign Corrupt Practices Act ("FCPA") compliance issues.  This Order and the complaint filed contemporaneously herewith relate to events that occurred in 1994 and 1995, and not the current practices of IBM. 
+
+ IV. 
+
+  LEGAL DISCUSSION  
+
+   Section 13(b)(2)(A) of the Exchange Act, the "books and records" provisions of the FCPA, requires reporting companies to make and keep books, records, and accounts, which, in reasonable detail, accurately and fairly reflect their transactions and disposition of assets.  Such companies are also responsible for ensuring that their wholly-owned foreign subsidiaries comply with Section 13(b)(2)(A). 
+
+   Based upon the foregoing, the Commission concludes that IBM violated Section 13(b)(2)(A) by failing to ensure that IBM-Argentina maintained books and records which accurately reflected IBM-Argentina's transactions and dispositions of assets with respect to the Subcontract.  The presumably illicit payments to the foreign officials were not disclosed in IBM-Argentina's books and records.  Instead, IBM-Argentina's books and records include incomplete and inaccurate descriptions of CCR's services, and a backdated authorization document. 
+
+ V. 
+
+   In determining to accept IBM's Offer, the Commission considered remedial acts promptly undertaken by Respondent and cooperation afforded to the Commission staff. 
+
+ VI. 
+
+   Based upon the foregoing, the Commission deems it appropriate to accept the Offer submitted by IBM. 
+
+ Accordingly, IT IS HEREBY ORDERED, pursuant to Section 21C of the Exchange Act, that IBM cease and desist from committing any violation of Section 13(b)(2)(A) of the Exchange Act by inaccurately recording payments made to CCR pursuant to the Subcontract and from committing or causing any future violation of Section 13(b)(2)(A) of the Exchange Act. 
+
+By the Commission.  
+
+Jonathan G. Katz 
+Secretary
+
+  Footnotes 
+
+
+   1   Under the Subcontract, CCR purportedly agreed to provide certain services to IBM-Argentina, including an alternative banking software system for BNA.  The total amount of the Subcontract was $37 million.
+
+    2   The procurement review process included formal evaluations of both the technical and cost feasibility of all major subcontracts. 
+
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+   
diff --git a/raw/aaer/2000/AAER-1356.txt b/raw/aaer/2000/AAER-1356.txt
new file mode 100644
index 0000000000000000000000000000000000000000..5a53a28af64130623eef65cde60510d74aec7d67
--- /dev/null
+++ b/raw/aaer/2000/AAER-1356.txt
@@ -0,0 +1,1363 @@
+
+
+ 
+ 
+   
+     
+ 
+ 
+ 
+ 
+ 
+ 
+
+     
+     
+     SEC.gov | International Business Machines Corporation 
+     
+     
+     
+     
+     
+     
+     
+         !function(){var e=navigator.userAgent,a=document.documentElement,n=a.className;n=n.replace("no-js","js"),/iPad|iPhone|iPod/.test(e)&&!window.MSStream&&(n+=" ua-ios"),a.className=n}(); 
+     {"path":{"baseUrl":"\/","pathPrefix":"","currentPath":"node\/484711","currentPathIsAdmin":false,"isFront":false,"currentLanguage":"en"},"pluralDelimiter":"\u0003","suppressDeprecationErrors":true,"gtag":{"tagId":"","consentMode":false,"otherIds":[],"events":[],"additionalConfigInfo":[]},"ajaxPageState":{"libraries":"eJxdT0GOwzAI_JBdn_oei2DkeINNZLC22devlaZS2wtiBhhmcKNUTPo97jxyaXEH3GJpiZrFhQW38A4cMqgeYQGlV19JFTKpQ-kUmvQKXP7I0cO4tC2kPnbg2wVdFslM0SCHPMs3vsEPPD7J6hgOGdPCKJyoRxxqUuePHjLLAuzVjimenRJGSLW08NoBK9LUn6SHlrytVOlcpJShB63QLSpBx_WkOzHNePol4fRQo_qMPvQ36ZXsAmd99lMNr2t_GUR9n60EyX9a_wePd5ns","theme":"uswds_sec","theme_token":null},"ajaxTrustedUrl":[],"gtm":{"tagId":null,"settings":{"data_layer":"dataLayer","include_classes":false,"allowlist_classes":"","blocklist_classes":"","include_environment":false,"environment_id":"","environment_token":""},"tagIds":["GTM-TD3BKV"]},"data":{"extlink":{"extTarget":false,"extTargetAppendNewWindowDisplay":true,"extTargetAppendNewWindowLabel":"(opens in a new window)","extTargetNoOverride":false,"extNofollow":false,"extTitleNoOverride":false,"extNoreferrer":false,"extFollowNoOverride":false,"extClass":"0","extLabel":"(link is external)","extImgClass":false,"extSubdomains":true,"extExclude":".*\\.gov|http:\/\/www.xbrl.org\/utr\/2013-05-17\/utr.xml|http:\/\/www.xbrl.org\/dtr\/type\/numeric-2009-12-16.xsd|http:\/\/www.xbrl.org\/dtr\/type\/nonNumeric-2009-12-16.xsd|https:\/\/secir.secure.force.com\/ombudsman\/OMMSForm","extInclude":"","extCssExclude":".data-exempt","extCssInclude":"","extCssExplicit":"","extAlert":true,"extAlertText":"You are now leaving the SEC Website. The link you have selected is located on another server. Please click on the OK button below to proceed to the selected site. The SEC does not endorse this web site, its sponsor, or any of the policies, activities, products, or services offered on the site or by any advertiser on the site.","extHideIcons":false,"mailtoClass":"0","telClass":"","mailtoLabel":"(link sends email)","telLabel":"(link is a phone number)","extUseFontAwesome":false,"extIconPlacement":"append","extPreventOrphan":false,"extFaLinkClasses":"fa fa-external-link","extFaMailtoClasses":"fa fa-envelope-o","extAdditionalLinkClasses":"","extAdditionalMailtoClasses":"","extAdditionalTelClasses":"","extFaTelClasses":"fa fa-phone","allowedDomains":null,"extExcludeNoreferrer":""}},"user":{"uid":0,"permissionsHash":"e506dfd1572f94bd1f339f1a7483bfbded31d4a9d2bdfdca3fdbc235153380ee"}} 
+  
+  
+  
+  
+  
+
+     
+ 
+
+   
+   
+
+         
+      Skip to search field
+     
+
+     
+      Skip to main content
+     
+
+        
+
+       
+    
+
+    
+   
+     
+   
+     
+       
+         
+           
+         
+         
+           An official website of the United States government 
+           Here’s how you know 
+         
+         
+           Here’s how you know 
+         
+       
+     
+     
+       
+         
+           
+           
+             
+               
+                Official websites use .gov
+               
+               
+                              A  .gov  website belongs to an official government organization in the United States.
+                           
+           
+         
+         
+           
+           
+             
+               
+                Secure .gov websites use HTTPS
+               
+                   
+              A  lock 
+              (   Lock  A locked padlock    )
+              or  https://  means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.
+             
+           
+         
+       
+     
+   
+ 
+
+   
+
+ 
+   
+
+         
+       
+                 
+                     SEC homepage 
+           
+           
+         
+       
+
+                   
+        Menu
+          
+       
+     
+
+         
+       
+                 
+           
+             
+           
+         
+
+                 
+          Close
+            
+         
+       
+
+            
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+
+                       
+      
+        
+  
+                   
+    
+          
+      
+             
+                   
+             Search Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Search Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Full Text Search 
+               
+          
+      
+             
+        
+                             Latest Filings 
+               
+          
+      
+             
+        
+                             Mutual Fund Search 
+               
+          
+      
+             
+        
+                             Variable Insurance Products Search 
+               
+          
+      
+             
+        
+                             SIC Codes 
+               
+          
+      
+             
+        
+                             CIK Lookup 
+               
+          
+      
+             
+        
+                             Public Dissemination Service (PDS) 
+               
+          
+      
+             
+        
+                             Search Assistance 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Submit Filings 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Submit Filings 
+         
+      
+             
+    
+          
+      
+             
+        
+                             EDGAR Filer Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Filing Portal 
+               
+          
+      
+             
+        
+                             Online Forms Management Portal 
+               
+          
+      
+             
+        
+                             EDGAR Next 
+               
+          
+      
+             
+        
+                             Forms Index 
+               
+          
+      
+             
+        
+                             Filer Support & Resources 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Data & Research 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Data & Research 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Data Library 
+               
+          
+      
+             
+        
+                             Statistics & Data Visualizations 
+               
+          
+      
+             
+        
+                             Structured Data 
+               
+          
+      
+             
+        
+                             Investment Management Data 
+               
+          
+      
+             
+        
+                             Open Data at the SEC 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Rules, Enforcement, & Compliance	 
+           
+        
+                    
+        
+  
+                     
+      
+      
+             
+    
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Rules & Regulations 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Rulemaking Activity 
+               
+          
+      
+             
+        
+                             Submit Public Comments 
+               
+          
+      
+             
+        
+                             Staff Guidance 
+               
+          
+      
+             
+        
+                             No-Action, Interpretive, and Exemptive Letters 
+               
+          
+      
+             
+        
+                             Self-Regulatory Organization Rulemaking 
+               
+          
+      
+             
+        
+                             Public Petitions for Rulemaking 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Enforcement & Litigation 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Litigation Releases 
+               
+          
+      
+             
+        
+                             Administrative Proceedings 
+               
+          
+      
+             
+        
+                             Administrative Law Judge Orders and Initial Decisions 
+               
+          
+      
+             
+        
+                             Trading Suspensions 
+               
+          
+      
+             
+        
+                             Distributions to Harmed Investors 
+               
+          
+      
+             
+        
+                             Receiverships 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+                
+           Compliance 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Examination Priorities 
+               
+          
+      
+             
+        
+                             Risk Alerts 
+               
+          
+      
+             
+        
+                             Compliance Outreach Program 
+               
+    
+  
+       
+  
+
+               
+          
+      
+             
+        
+                    
+        
+  
+            
+      
+             
+    
+          
+      
+             
+        
+                             Proposed Rules 
+               
+          
+      
+             
+        
+                             What's New 
+               
+          
+      
+             
+        
+                             Whistleblower Program 
+               
+    
+  
+       
+  
+
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             Featured Topics 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           Featured Topics 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Crypto Task Force 
+               
+          
+      
+             
+        
+                             Cybersecurity 
+               
+          
+      
+             
+        
+                             Market Structure Analytics 
+               
+          
+      
+             
+        
+                             Saving and Investing for Military Personnel 
+               
+          
+      
+             
+        
+                             Saving and Investing for Teachers 
+               
+          
+      
+             
+        
+                             SEC-CFTC Harmonization Initiative 
+               
+          
+      
+             
+        
+                             Treasury Clearing Implementation 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+                   
+             About 
+           
+        
+                    
+        
+  
+                     
+      
+                
+           About 
+         
+      
+             
+    
+          
+      
+             
+        
+                             Mission 
+               
+          
+      
+             
+        
+                             Commissioners 
+               
+          
+      
+             
+        
+                             Divisions & Offices 
+               
+          
+      
+             
+        
+                             Division & Office Directors 
+               
+          
+      
+             
+        
+                             Advisory Committees 
+               
+          
+      
+             
+        
+                             Budget & Performance 
+               
+          
+      
+             
+        
+                             Reports & Publications 
+               
+          
+      
+             
+        
+                             Commission Votes 
+               
+          
+      
+             
+        
+                             Contact the SEC 
+               
+          
+      
+             
+        
+                             Careers 
+               
+    
+  
+         
+     
+  
+
+               
+          
+      
+             
+        
+                             Submit a Tip or Complaint 
+               
+    
+  
+       
+  
+
+
+
+
+   
+
+      
+             
+              
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+             
+     
+
+    
+     
+                           
+            
+               
+                     
+                           Newsroom 
+               
+                 
+                           | 
+               
+                 
+                           Investors 
+               
+                 
+                           Small Businesses 
+               
+                 
+                           Whistleblowers 
+               
+         
+  
+
+
+                       
+
+                 
+        
+  
+
+
+  
+
+ 
+   
+     Search SEC.gov & EDGAR 
+       
+         
+     
+  
+     
+       Search 
+     
+   
+ 
+
+
+        
+
+
+               
+     
+     
+
+   
+ 
+  
+
+
+   
+     
+         
+      
+
+   
+
+     
+   
+
+ 
+         
+             
+   
+     
+       
+        More in this Section
+       
+     
+     
+       
+           
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+       
+     
+   
+ 
+             
+     
+    
+
+  
+  
+           
+                                                             
+               
+                 Enforcement & Litigation 
+               
+             
+                                                                                                                                                                                                                                                                                        
+  
+                     
+         
+           Litigation Releases 
+         
+                             
+                       
+         
+           Administrative Proceedings 
+         
+                             
+                       
+         
+           Administrative Law Judge Orders and Initial Decisions 
+         
+                             
+                       
+         
+           Trading Suspensions 
+         
+                             
+                       
+         
+           Distributions to Harmed Investors 
+         
+                             
+                       
+         
+           Receiverships 
+         
+                             
+                       
+         
+           Electronic Filings in Administrative Proceedings (eFAP) 
+         
+                             
+                       
+         
+           Rules of Practice 
+         
+                             
+                       
+         
+           Applications for Reentry 
+         
+                             
+                       
+         
+           Reports of Investigations 
+         
+                             
+                       
+         
+           Whistleblower Program 
+         
+                             
+                       
+         
+           Public Alert: Unregistered Soliciting Entities (PAUSE) 
+         
+                             
+                       
+         
+           SEC Action Lookup - Individuals (SALI) 
+         
+                             
+                       
+         
+           Enforcement Data Delivery Standards 
+         
+                             
+                       
+         
+           Small Businesses 
+         
+                             
+                       
+         
+           Appellate Briefs 
+         
+                             
+                       
+         
+           Amicus / Friend of the Court Briefs 
+         
+                             
+               
+  
+                                                                                                                                                                                                                                                                                                                                                 
+  
+
+
+
+
+   
+
+ 
+     
+  
+   
+
+                   
+     
+  
+    
+        
+   
+
+     
+       
+                 
+  
+    
+      
+        
+     
+  
+    
+       
+   
+       
+               Home 
+           
+       
+               Enforcement and Litigation 
+           
+       
+               Litigation Releases 
+           
+       
+              International Business Machines Corporation
+           
+     
+ 
+
+   
+
+     
+
+      
+      
+             
+        International Business Machines Corporation
+       
+
+             
+   
+
+
+        
+                   
+             
+               
+  
+    
+      
+
+   
+
+             
+                        
+              SECURITIES AND EXCHANGE COMMISSION
+ Washington, D.C. 
+
+ LITIGATION RELEASE NO. 16839 / December 21, 2000 
+
+   SEC v. INTERNATIONAL BUSINESS MACHINES CORPORATION, U.S.D.C. for the District of Columbia, 1:00CV03040 (JR) 
+
+   SEC SETTLES FOREIGN CORRUPT PRACTICES ACT CASE AGAINST IBM 
+
+ The Commission today announced the filing of a settled cease-and-desist proceeding against International Business Machines Corporation ("IBM").  The case involves violations of the books and records provisions of the Securities Exchange Act of 1934, resulting from presumed illicit payments to foreign officials by one of IBM's wholly-owned subsidiaries during 1994.  Without admitting or denying the Commission's findings, IBM consented to the entry of an Order that requires IBM to cease and desist from committing or causing any future violation of Section 13(b)(2)(A) of the Exchange Act.  In addition, the Commission announced the filing of a complaint in the United States District Court for the District of Columbia against IBM seeking a civil money penalty.  Without admitting or denying the allegations in the complaint, IBM consented to the entry of a judgment ordering IBM to pay a $300,000 penalty. 
+
+ The Order finds that IBM violated Section 13(b)(2)(A) of the Exchange Act in connection with a $250 million contract to integrate and modernize the computer system of a commercial bank owned by the Argentine government.  According to the Order, certain former senior management of IBM-Argentina, S.A. ("IBM-Argentina"), a wholly-owned subsidiary of IBM, caused IBM-Argentina to enter into a subcontract with Capacitacion Y Computacion Rural, S.A. ("CCR"), and money paid to CCR by IBM-Argentina in connection with the subcontract was apparently subsequently paid by CCR to certain bank officials.  Specifically, the Order finds that, during 1994 and 1995, IBM-Argentina paid CCR approximately $22 million under the subcontract, of which at least $4.5 million was transferred to several bank directors by CCR.   
+
+ The Order further finds that, in connection with the subcontract, IBM-Argentina's former senior management overrode IBM procurement and contracting procedures, and hid the details of the subcontract from the technical and financial review personnel assigned to the contract.  In the Order, the Commission finds that IBM-Argentina's former senior management provided IBM-Argentina's procurement department with fabricated documentation, including a backdated authorization letter and a document that stated incomplete and inaccurate reasons for hiring CCR.  According to the Order, IBM-Argentina recorded the payments to CCR in its books and records as third-party subcontractor expenses.  This information was incorporated into IBM's 1994 Form 10-K, which was filed with the Commission on March 23, 1995. 
+ 
+ 
+      
+                                   
+               
+     
+
+       
+
+
+   
+
+   
+
+    
+   
+
+      
+ 
+
+ 
+
+   
+     
+           Return to top 
+         
+
+         
+       
+                 SEC homepage 
+                 
+       
+     
+
+           
+                           
+                           
+    
+
+  
+                 
+    
+                   
+                                                     About the SEC	 
+          
+                       
+                
+          
+                   
+           Budget & Performance 
+         
+                         
+           Careers 
+         
+                         
+           Commission Votes	 
+         
+                         
+           Contact 
+         
+                         
+           Contracts 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Transparency 
+          
+                       
+                
+          
+                   
+           Accessibility & Disability 
+         
+                         
+           Super Intelligence 
+         
+                         
+           FOIA 
+         
+                         
+           Inspector General 
+         
+                         
+           No FEAR Act Data 
+         
+                         
+           Ombuds 
+         
+                         
+           SEC Excess Personal Property Guidance 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Websites 
+          
+                       
+                
+          
+                   
+           Investor.gov 
+         
+                         
+           Related Sites 
+         
+                         
+           USA.gov 
+         
+          
+        
+  
+             
+                   
+                         
+                                                     Site Information 
+          
+                       
+                
+          
+                   
+           Plain Writing 
+         
+                         
+           Privacy & Security 
+         
+                         
+           Site Map 
+         
+          
+        
+  
+             
+                   
+          
+               
+    
+  
+
+
+
+   
+
+           
+                       
+               Stay connected. Sign up for email updates. 
+                
+ 
+   
+   
+   
+   Your email address 
+   
+   Sign Up 
+ 
+
+             
+                             
+           
+                 
+                     
+         
+                 
+                       
+               
+                 X 
+                 
+    
+ 
+               
+             
+                                 
+               
+                 Facebook 
+                 
+    
+ 
+               
+             
+                     
+             
+               Instagram 
+               
+    
+ 
+             
+           
+                       
+               
+                 RSS  
+                 
+    
+ 
+               
+             
+                                 
+               
+                 YouTube 
+                 
+    
+ 
+               
+             
+                               
+             
+               Email Updates 
+               
+    
+ 
+             
+           
+         
+              
+ 
+
+   
+
+    
+
+      
+  
+  
+
+     
+