Off topic:
sec.gov
OHIO COMPANY AND FOUR OHIO RESIDENTS CHARGED WITH ACCOUNTING FRAUD
On October 27, the Commission filed a complaint in the Northern
District of Ohio against ABS Industries, William McCarthy, Theodore
Ursu, John McHale and David Bush (defendants). The complaint
alleges that the defendants engaged in a fraudulent scheme to
prematurely recognize millions of dollars of revenue by improperly
recording purported "bill and hold" sales at ABS, in order to meet
sales projections established by McCarthy. As a result, ABS
overstated its accounts receivables, sales, pre-tax income, net
income and earnings per share in its financial statements for fiscal
year 1994 and for the first three quarters of 1995. The complaint
alleges that this scheme violated the anti-fraud, reporting, and
books and records provisions of the federal securities laws. The
Commission is seeking an order of permanent injunction, civil
penalties, and disgorgement against all of the defendants, and an
order prohibiting McCarthy and Ursu from acting as officers or
directors of any public company. [SEC v. ABS Industries, Inc., et
al., N.D. Ohio, Case No. 1:99CV2600] (LR-16344; AAE Rel. 1197)<< |
