PUBLIC ADMINISTRATIVE PROCEEDINGS PURSUANT TO RULE 102(e) INSTITUTED AND
SETTLED AGAINST GERALD KUDLER
The Commission instituted and settled public administrative
proceedings pursuant to Rule 102(e) of the Commission's Rules of
Practice against Gerald M. Kudler. In anticipation of the
institution of the public administrative proceedings, Kudler has
submitted an Offer of Settlement which the Commission has determined
to accept.
In his Offer, Kudler consents to the issuance of an Order by the
Commission permanently denying him the privilege of appearing or
practicing as an accountant before the Commission. Kudler consents
to the issuance of such an Order by the Commission without admitting
or denying the findings, except that he admits the issuance of an
injunction against him on November 30, 1995 in SEC v. Sani-Tech
Industries, Inc., et al., C.A. No. 94-4535 (ADS) (E.D.N.Y. filed
September 27, 1994) (LR-14760) for violations of the antifraud
provisions of the federal securities laws and the prohibition
against the falsification of an issuer's books and records. (Rel.
34-36598; AAE Rel. 740)
FINAL JUDGMENT ISSUED AGAINST GERALD KUDLER
The Commission announced today that Gerald M. Kudler, a defendant in
a civil action filed by the Commission in the United States District
Court for the Eastern District of New York on September 27, 1994,
has consented to the entry of a permanent injunction. Kudler,
formerly the accountant for Sani-Tech Industries, Inc., was charged
with preparing false and misleading annual and quarterly reports for
Sani-Tech, which were then filed with the Commission. Among other
things, the complaint alleges that Kudler issued audit opinions on
Sani-Tech's financial statements which were included in Sani-Tech's
annual reports, falsely representing that Sani-Tech's financial
statements had been prepared in accordance with generally accepted
accounting principles (GAAP) and that they had been audited by a
certified public accountant.
The Court's Order enjoins Kudler from further violations of the
antifraud provisions and the prohibitions against falsifying an
issuer's books and records, and orders disgorgement plus prejudgment
interest in the amount of $23,000, but waives the payment of
disgorgement and prejudgment interest based on Kudler's demonstrated
inability to pay. Based on Kudler's inability to pay, the Order
does not impose civil penalties. [SEC v. Sani-Tech Industries,
Inc., et al., Civil Action No. 94-4535, ADS, EDNY] (LR-14760; AAE
Rel. 741) |
