SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 16657 / August 17, 2000
ACCOUNTING AND AUDITING ENFORCEMENT RELEASE NO. 1294
SECURITIES AND EXCHANGE COMMISSION v. STEPHEN R.B. BINGHAM, et al.
(United States District Court for the District of Massachusetts, C.A.
No. 96-10793-EFH)
FORMER OFFICERS OF ALIAS RESEARCH, INC. ENJOINED
AND CHARTERED ACCOUNTANT BARRED
FOR ROLE IN FINANCIAL FRAUD
The Commission announced today that, on July 24, 2000, the Honorable
Edward F. Harrington, United States District Judge for the District of
Massachusetts, issued a final judgment permanently enjoining William
J. McClintock of Mississauga, Ontario from violating the antifraud and
internal controls provisions of the federal securities laws.
Previously, on March 28, 2000, Judge Harrington issued final judgments
permanently enjoining Stephen R.B. Bingham of Toronto and Susan
McKenna Grant of Bermuda, Alias's former chief executive officer and
executive vice president, respectively, with violating the antifraud
and reporting provisions of the federal securities laws. Based on the
injunction against McClintock, a chartered accountant, the Commission
today instituted administrative proceedings against him and issued an
order denying McClintock the privilege of appearing or practicing
before the Commission as an accountant. The order allows McClintock to
apply for reinstatement after two years. McClintock is the former
chief financial officer of Alias Research, Inc., a Toronto-based
software company whose stock was traded on the NASDAQ National Market
System. In anticipation of the institution of administrative
proceedings, McClintock submitted an offer of settlement consenting to
the issuance of the order.
According to the Commission's order, on March 20, 1997, the Institute
of Chartered Accountants of Ontario agreed to postpone its
investigation of McClintock pending the outcome of the Commission's
proceedings against him, based upon McClintock's undertaking not to
seek reinstatement of his public accountant's license until the
professional conduct committee concluded its investigation of him.
On April 16, 1996, the Commission filed a complaint against Bingham,
Grant and McClintock. According to the complaint, the three former
corporate officers caused Alias to fraudulently recognize revenue on
four sales transactions occurring during two successive fiscal
quarters, which resulted in material misrepresentations in quarterly
reports filed with the Commission. As a result of three of the
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION v. STEPHEN R.B. BINGHAM, et al. (United States District
The Commission announced today that, on July 24, 2000, the Honorable Edward F. Harrington,
Previously, on March 28, 2000, Judge Harrington issued final judgments permanently enjoining
Based on the injunction against McClintock, a chartered accountant, the Commission today
McClintock is the former chief financial officer of Alias Research, Inc., a Toronto-based
In anticipation of the institution of administrative proceedings, McClintock submitted an
On April 16, 1996, the Commission filed a complaint against Bingham, Grant and McClintock.
According to the complaint, the three former corporate officers caused Alias to fraudulently
Alias had actual pretax income of $164,000 for the second quarter, but reported pretax income
Recognition of revenues on the four transactions was improper because the revenues were not
The final judgment against Bingham permanently enjoins him from violating Section 17of the
It also prohibits Bingham for a period of five years from acting as an officer or director of
Bingham consented to the entry of the final judgment without admitting or denying any of the
The final judgment against Grant permanently enjoins her from violating Section 17of the
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