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Non-Tech : Bill Wexler's Dog Pound -- Ignore unavailable to you. Want to Upgrade?

To: Mike M who wrote (6007)	1/12/2000 11:59:00 AM
From: Peter V	Read Replies (1) \| Respond to of 10293

I think fraud, after it has been exposed and the company's management has been fired and replaced, is not relevant to the future of the company. Fraud is relevant before it is exposed, because once exposed the stock price will drop like a rock. IFMX was exposed in 1997 and management replaced before Bill recommended them. Informix had been under investigation since an extensive audit of financial records resulted in major downward revisions in its earnings and revenue numbers in 1997. The firm agreed to a settlement last month of shareholder suits stemming from the accounting problems. The SEC enforcement proceeding filed Tuesday said the company "fraudulently and otherwise improperly" inflated revenues by $295 million and earnings by $244 million between 1994 and the first quarter of 1997. * * * In its order, the commission found that the company, through former employees, violated the antifraud provisions of federal securities laws. The order also found that former employees falsified the company's books and records and that Informix failed to sufficiently monitor its internal accounting practices. * * * After replacing its former management, the company and its auditors uncovered more than $100 million in accounting irregularities and restated its financial results.