SEC v FRANCIS A. TARKENTON, DONALD P. ADDINGTON, et al


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Keywords & Phrases

CaseNo: LR-16306, CourtCode: FED, CourtName: CIVIL INJUNCTIVE ACTION IN FEDERAL COURT IN ATLANTA, GEORGIA CHARGING, Defendant: Francis A. Tarkenton, Donald P. Addington, Rick W. Gossett, Lee R. Fontaine, William E. Hammersla, III, Eladio Alvarez and Edward Welch, Plaintiff: SEC, State: GA Georgia, UniqueCaseRef: SEC>LR-16306, Exchange Act, Sales, Violation, Knowledgeware, Securities, Reporting, Age, Commission, Fontaine, Hammersla, Fraud, Scheme, Gossett, Civil, Pay, Civil Money Penalty, Falsifying Corporate Books, Engaging, Tarkenton, Addington, Committing Securities Fraud, Alvarez, Earnings, Direct Sales, Receivables, Judgment Permanently Enjoining, Disgorge, Prejudgment, Controlling, Amount , ContentID: 120241803

Case Documents

1999-09-28

SEC LITIGATION RELEASE
[ see first page and extracted highlights below ] ItemID: 104896

4 pages
HTML

Total Documents: 1 document , 4 pages

Price: $ 19.95

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1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS

SALES
VIOLATION
KNOWLEDGEWARE
SECURITIES
REPORTING
AGE
COMMISSION
FONTAINE
HAMMERSLA
FRAUD
SCHEME
GOSSETT
CIVIL
PAY
CIVIL MONEY PENALTY
FALSIFYING CORPORATE BOOKS
ENGAGING
TARKENTON
ADDINGTON
COMMITTING SECURITIES FRAUD
ALVAREZ
EARNINGS
DIRECT SALES
RECEIVABLES
JUDGMENT PERMANENTLY ENJOINING
DISGORGE
PREJUDGMENT
CONTROLLING
AMOUNT

   SECURITIES AND EXCHANGE COMMISSION<

   Litigation Release No. 16306 / September 28, 1999

Accounting and Auditing Enforcement
Release No. 1179

   SECURITIES AND EXCHANGE COMMISSION v. FRANCIS A. TARKENTON, DONALD P.
   ADDINGTON, RICK W. GOSSETT, LEE R. FONTAINE, WILLIAM E. HAMMERSLA,
   III, ELADIO ALVAREZ and EDWARD WELCH,

   Civil Action File No. 1 99-CV-2497 (N.D. Ga. September 28, 1999)

   The Securities and Exchange Commission announced today that it filed a
   civil injunctive action in federal court in Atlanta, Georgia charging
   seven former executives of a computer software company, KnowledgeWare,
   Inc. ("KnowledgeWare"), with carrying out a multi-million dollar
   financial fraud scheme that materially inflated KnowledgeWare's
   reported earnings during KnowledgeWare's fiscal year ended June 30,
   1994 ("Fiscal Year 1994"), and charging two of those defendants with
   also committing illegal insider trading.

   Named in the Commission's complaint were

   Francis A. Tarkenton ("Tarkenton"), age 59, was Chief Executive
   Officer and Chairman of the Board of Directors of KnowledgeWare.

   Donald P. Addington ("Addington"), age 48, was President and Chief
   Operating Officer of KnowledgeWare.

   Rick W. Gossett ("Gossett"), age 47, is a certified public accountant
   and was Chief Financial Officer of KnowledgeWare.

   Lee R. Fontaine ("Fontaine"), age 34, is a certified public accountant
   and was Manager of Financial Reporting at KnowledgeWare.

   William E. Hammersla, III ("Hammersla"), age 45, was KnowledgeWare's
   Vice President for Direct Sales in the Northeastern United States.

   Eladio Alvarez ("Alvarez"), age 41, was a District Sales Manager in
   KnowledgeWare's Direct Sales Group.

   Edward Welch ("Welch"), age 55, was a District Sales Manager in
   KnowledgeWare's Reseller Channel Sales group.

   The Commission's complaint alleges that

   Tarkenton, Addington, Gossett, Fontaine, Hammersla, Alvarez and Welch

SNIPPETS:

SECURITIES AND EXCHANGE COMMISSION<

Civil Action File No. 1 99-CV-2497 (N.D.

The Securities and Exchange Commission announced today that it filed a civil injunctive

Francis A. Tarkenton, age 59, was Chief Executive Officer and Chairman of the Board of

Donald P. Addington, age 48, was President and Chief Operating Officer of KnowledgeWare.

Rick W. Gossett, age 47, is a certified public accountant and was Chief Financial Officer of

Lee R. Fontaine, age 34, is a certified public accountant and was Manager of Financial

William E. Hammersla, III, age 45, was KnowledgeWare's Vice President for Direct Sales in the

Eladio Alvarez, age 41, was a District Sales Manager in KnowledgeWare's Direct Sales Group.

Tarkenton, Addington, Gossett, Fontaine, Hammersla, Alvarez and Welch engaged in a fraudulent

KnowledgeWare "parked" inventory with software resellers and other supposed customers that

Even when KnowledgeWare later restated those quarterly results, KnowledgeWare continued to

the Commission seeks permanent injunctions and civil penalties against all defendants; and

Section 10of the Securities Exchange Act of 1934 and Rule 10b-5; falsifying corporate books

Tarkenton also agreed to pay a civil money penalty of $100,000 and disgorge $54,187, the

* Addington consented to the issuance of a final judgment permanently enjoining him from porate reporting, recordkeeping and internal control provisions of the Exchange Act and 13and Rules


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