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Sarbanes-Oxley News & Developments
Warning Shot from the SEC Enforcement ChiefEnforcement chief, Stephen Cutler, sets his sights on outside directors.
> > The SEC is broadening its crackdown on fraud to include board members who ignore misconduct. According to Cutler an April suit against a former outside board member was only the first salvo in this area.
The SEC charges that from 1998 thru 2001, Brian Adley, former chairman for Chancellor, CEO, and controlling shareholder, devised a scheme to inflate the transportation-equipment leasing reported assests, revenue, and profits using fabricated documents and fraudulent accounting.
Among other defendents were David Volpe, former acting CFO at Chancellor; Franklyn Churchill, former president and COO; Jonathan Ezrin, who served at various times as principal accounting officer, treasurer, and controller - and Rudolph Peselman, a former director and member of the audit committee for the company.
Peselman allegedly signed false financial statements, ignored clear warning signs of financial improprieties, and failed to ensure that company filings were accurate.
Source: CFO
Published:2003-08-22
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