Itex Ex-CEO Baer Settles SEC Charges of Inflating Revenue
Washington, Dec. 27 (Bloomberg) -- Former Itex Corp. Chairman Michael T. Baer agreed not to work again as an executive at a public company as part of a settlement of regulatory charges that he helped inflate the barter business's revenue.
The Securities and Exchange Commission alleged that Baer, who was the Sacramento, California-based company's chairman and chief executive from 1990 to 1996, fraudulently helped other company executives overstate Itex results.
The commission had previously reached settlements with five other defendants, including Itex founder Terry Neal, who the SEC said orchestrated the scheme from 1994 to 1996.
Baer also was ordered to repay $1.4 million in what the SEC said were illegal gains, but the agency said it waived this penalty because of Baer's ``financial condition.'' He neither admitted nor denied wrongdoing in the settlement, which was filed in Portland, Oregon, federal court.
Baer didn't return a phone message left at his home.
Itex stock has fallen from a 52-week closing high of $1.75 on Feb. 16. It was trading at 16 1/2 cents, up 1 1/2 cents, in late trading today.
In September, Neal agreed to pay $2.5 million to settle SEC charges that he led a scheme to inflate company assets, revenue and earnings by entering into ``sham'' barter transactions. He neither admitted nor denied wrongdoing.
Dec/27/2000 15:20 ET
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