From The Wall Street Journal, Monday, October 2, 2000, page A17:
"SEC Charges Leah With Falsely Claiming Two Firms As Auditors
By a Wall Street Journal Staff Reporter
NEW YORK-The Securities and Exchange Commission charged Leah Industries, Inc.
with falsely claiming that Deloitte & Touche and PricewaterhouseCoopers were its
auditors.
The complaint charges that Leah, a Canadian oil and gas firm, Birte Boock, its chief
executive, and Irwin Boock, a shareholder, violated antifraud provisions of federal
securities laws. Specifically, the complaint says that in December 1998, the Boocks
directed Leah to issue a press release saying that it had engaged Deloitte to serve as its
auditor, a claim that was false, the SEC said. The agency also charges that Birte Boock
told investors back in August 1998 that "the Moscow office of 'Coopers' was conducting
an audit of Leah's books," and added she expected Leah, which at the time was traded
over the counter, to be listed on the American Stock Exchange by the end of 1998.
The SEC also charges that during the time Leah was making these claims, Irwin Boock
sold 537,500 shares of Leah stock, and received about $319,050 in proceeds. Leah
sold about 56,000 shares of its stock and obtained $30,724, the complaint further notes.
The commission is seeking injunctions against the defendants and other penalties.
Peter Moulinas, whom the SEC identified as Leah's attorney, said he no longer
represented the firm. A call to a Toronto attorney Mr. Moulinas said he referred the matter
to wasn't returned. A Toronto phone number for Leah Industries was answered by a
representative of Flywell Travel, who said the phone number didn't belong to Leah. A
Toronto-area phone operator said there were no residential listings for either Irwin or
Birte Boock.
The SEC says it suspended trading in Leah securities on March 12, 1999." |
