Cos., Individuals in SEC Fraud Case
The Associated Press
Sep. 28, 1999
The Securities and Exchange Commission announced enforcement actions Tuesday alleging accounting fraud against these companies and individuals. Those agreeing to settlements neither admitted nor denied wrongdoing:
_Mitchell C. Kahn, president and chief executive officer, First Merchants Acceptance Corp., Deerfield, Ill.; Paul M. Van Eyl, vice president of strategic planning; and Thomas R. Ehmann, chief information officer. First Merchants filed for bankruptcy in July 1997.
Steven R. Zemaitis, financial analyst, and Julie Freisinger, operations manager, agreed to settlements with the SEC.
_Material Sciences Corp., Elk Grove Village, Ill., and Robert H. Sutton, plant controller. The company agreed to a settlement.
_Lawrence Borowiak, accounting manager, Mercury Finance Co., Lake Forest, Ill., and Joanne Borowiak. Mercury filed for bankruptcy in July 1998, reorganized and is now known as MFN Financial Corp.
_Mar-Jeanne Tendler, chairman and CEO, Wiz Technology Inc., San Juan Capistrano, Calif.; Arthur S. Tendler, president and board member; and Billie M. Jolson, chief financial officer. Wiz filed for bankruptcy in August 1998.
_Computone Corp., Alpharetta, Ga.; Thomas J. Anderson, president, CEO and chief operating officer; Gregory A. Alba, controller and chief financial officer; Donald A. Pearce, vice president of finance and principal accounting officer; Brian D. Kretschman, vice president of North American sales; Duncan E. Hume, vice president of international sales; Danny R. Auerbach, national sales manager; Michael L. Glaser, president of CYMA, a Computone customer; and James D. Montgomery II, director of original equipment manufacturing sales.
Ricky D. Barkley, accounting manager, agreed to a settlement.
_Eladio Alvarez and Edward Welch, district sales managers, KnowledgeWare Inc., Atlanta. KnowledgeWare merged with another company in 1994.
These company officials agreed to settlements: Fran Tarkenton, chairman and CEO; Donald P. Addington, president and chief operating officer; Rick W. Gossett, chief financial officer; Lee R. Fontaine, manager of financial reporting; William E. Hammersla III, vice president; Laura M. Drews, vice president; Stephen J. Pace, vice president; Robert S. Chamberlain, vice president; and Joseph A. Mathes, district sales manager.
_FastComm Communications Corp., Sterling, Va. FastComm filed for bankruptcy in June 1998.
The company agreed to a settlement, as did Peter Madsen, CEO; Mark Rafferty, chief financial officer and treasurer; and Charles DesLaurier, vice president.
_CEC Industries, Henderson, Nev.; Gerald H. Levine, president, CEO and director; and Marie A. Levine, principal financial officer, principal accounting officer, treasurer, secretary and director.
_Itex Corp., Portland, Ore.; and Terry L. Neal, former president and chairman; Michael T. Baer, president, CEO and chairman; Graham H. Norris Sr., president and CEO; Cynthia Pfaltzgraff, controller and director; and Joseph M. Morris, chief financial officer.
_Paul T. Fink, chief financial officer, Photran Corp., Lakeville, Minn.
David Stevenson, president, CEO and chairman, and Mark A. Stevenson, his brother, agreed to settlements.
_Model Imperial Inc., Boca Raton, Fla., and Kenneth Schwartz and Joel Steinberg, partners in Cosmetics Plus. Model filed for bankruptcy in July 1996.
Harold M. Ickovics, president, CEO and chairman of Model; Stephen J. Kesh, chief financial officer and director of Model; and Robert M. Cankes, president of a major Model supplier, agreed to settlements.
_Bradley J. Buchanan, financial and operations controller of ElDorado, a former subsidiary of Thor Industries Inc., Jackson Center, Ohio. Buchanan was indicted in a related criminal case on Sept. 21.
_Raintree Healthcare Corp., formerly known as Unison Healthcare Corp., Scottsdale, Ariz., and Craig R. Clark, chief financial officer and board member. Unison filed for bankruptcy in May 1998 and subsequently changed its name to Raintree.
The company agreed to a settlement, as did Jerry M. Walker, president, CEO and board member, and Lisa M. Beuche, controller and vice president.
_Three officials of Pepsi-Cola Puerto Rico Bottling Co., San Juan, Puerto Rico, agreed to settlements: Jose Carlos Villares, vice president and general manager; Jose E. Rivera, director of finance; and Guillermo Quinones, controller. The company had previously agreed to a settlement, in May 1998.
_Noah Steinberg, president and CEO of Dominican Cigar Corp., Boca Raton; Enriquez Reyes Carrion, president and CEO of TMC Agroworld; Gershon Tannenbaum, secretary and director of a non-profit company; Jay M. Vermonty, president of a stock promotion company; and Carmen Vermonty.