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To: Wolff who wrote (78352)	6/21/2002 4:11:05 AM
From: Wolff	Respond to of 122087

SEC Files More Actions to Bar Executives Who Knew of Fraud Tue Jun 18,12:43 AM ET By: Michael Schroeder, Staff Reporter of The Wall Street Journal WASHINGTON -- The Securities and Exchange Commission ( news - web sites) is making good on a promise to bar more irresponsible executives and directors from working at public companies. In a letter sent to the White House, SEC Chairman Harvey Pitt said the agency has filed actions to bar 54 officers and directors in the past eight months, already more than the total number for all of the last fiscal year, which ended Sept. 30 . Mr. Pitt's letter reported on the SEC's progress in taking action on the 10 planks in President Bush ( news - web sites)'s plan for changing corporate rules to address weaknesses revealed by the Enron Corp. collapse. To address White House concerns, the SEC has proposed several rules that speed up disclosure of important company news, including stock trading by company executives. The SEC is scheduled to formally propose Thursday an accounting- oversight board. The Bush plan's big stick for executives who had knowledge of fraud at their companies is a lifetime ban. Under current law, the SEC often needs court approval before it can mete out such punishment. Under the Bush proposal, which requires congressional approval, the SEC would be allowed to act without asking a judge. In the past, the SEC generally barred executives and directors who committed specific violations, such as improper insider trading or collecting compensation tied to a fraud. Even without new legislative authority, the SEC has been operating recently under a more aggressive policy to hold top executives responsible for wrongdoing that occurred under their watch. "A central participant in a substantial securities fraud is simply not qualified to serve as an officer or director," said Stephen Cutler, the SEC's director of enforcement. For instance, in a settlement announced last week, Aura Systems Inc.'s former chief executive officer, without admitting or denying fraud allegations, agreed to a permanent bar from serving as a director or officer. Zvi Kurtzman knew or should have known the company was cooking the books, the SEC said. Mr. Kurtzman's attorney, Susan Swingle, declined to comment. Separately, the chief executive of PricewaterhouseCoopers Monday outlined his blueprint for overhauling the quality of financial reporting. In a speech at the National Press Club, Samuel DiPiazza said he advocates replacing U.S. generally accepted accounting principles with a new, global standard. Europe has embraced the idea, requiring companies in the European Union ( news - web sites) to switch to a new, international accounting standard by 2005. Mr. DiPiazza said the U.S. "must move in this direction as well." Unlike the U.S. system, which is based on very specific rules that can run hundreds of pages, the European model relies on broad principles, requiring managers and auditors to use their judgment. --- Judith Burns contributed to this article. Write to Michael Schroeder at mike.schroeder@ wsj.com

To: Wolff who wrote (78352)	6/21/2002 4:12:29 AM
From: Wolff	Read Replies (1) \| Respond to of 122087

Three Execs Charged With Fraud Wed Jun 12, 1:47 PM ET DETROIT (AP) - Three executives who presided over the $250 million collapse of MCA Financial Corp. were indicted for alleged securities fraud. Chief executive Patrick Quinlan Sr., chief operating officer Lee Wells and John O'Leary, a senior vice president for the mortgage company, were charged Tuesday with conspiracy, making false statements to the Securities and Exchange Commission ( news - web sites) and mail, wire, and bank fraud. The company was swamped by bad mortgage loans and placed into bankruptcy in 1999. Investors, including the Policemen and Firemen Retirement System of Detroit, lost an estimated $250 million. "I've seen retirees who have lost their entire retirement and people who have had significant changes in their lives because of this," investor attorney Laurence Schultz said. According to the federal indictment, the executives and others fraudulently sold investments in mortgages and land contracts that MCA had assembled into investment pools. MCA allegedly misrepresented how earlier pools performed, inflated the value of mortgages and land contracts, and misappropriated some assets, the indictment said. MCA also allegedly misrepresented its financial condition in SEC filings. Attorney Neil Fink, who is representing Quinlan, did not immediately return a call for comment. If convicted, the defendants face up to five years in prison and a $250,000 fine on each count of conspiracy, mail fraud and lying to the SEC. They face up to 30 years and a $1 million fine on each count of wire or bank fraud. They also could be ordered to pay restitution. Four other MCA officers previously pleaded guilty to federal fraud charges