SEC v CHARLES T. YOUNG and SELIG ADLER


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Keywords & Phrases

CaseNo: -15794, Defendant: Charles T. Young and Selig Adler, Plaintiff: SEC, UniqueCaseRef: SEC>-15794, Woolworth, Commission, Exchange, Violations, Gamble, Adler, Chief Financial Officer, Woolworth Canada, Exchange Act, Securities, Alleges, Entry, Complaint, Subsidiaries, Kinney Shoe, Report, Proceeding, Kirsner, Thereunder, Cease-and-desist Proceeding, Admitting, Denying, Findings, Kinney Shoe Corporation, Earnings, Permanent, Injunctions, District, Fraud, Expenses , ContentID: 120242275

Case Documents

1998-06-29

SEC LITIGATION RELEASE
[ see first page and extracted highlights below ] ItemID: 105368

4 pages
TXT

Total Documents: 1 document , 4 pages

Price: $ 19.95

IVESLCD01 KGI0001

1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS

COMMISSION
EXCHANGE
VIOLATIONS
GAMBLE
ADLER
CHIEF FINANCIAL OFFICER
WOOLWORTH CANADA
EXCHANGE ACT
SECURITIES
ALLEGES
ENTRY
COMPLAINT
SUBSIDIARIES
KINNEY SHOE
REPORT
PROCEEDING
KIRSNER
THEREUNDER
CEASE-AND-DESIST PROCEEDING
ADMITTING
DENYING
FINDINGS
KINNEY SHOE CORPORATION
EARNINGS
PERMANENT
INJUNCTIONS
DISTRICT
FRAUD
EXPENSES








     UNITED STATES SECURITIES AND EXCHANGE COMMISSION


     Litigation Release No. 15794 / June 29, 1998

     Accounting and Auditing Enforcement
     Release No. 1048 / June 29, 1998

     Securities and Exchange Commission v. Charles T. Young and Selig Adler
     (June 29, 1998, S.D.N.Y.) 98 Civ. 4564 (J. Batts)

          The Securities and Exchange Commission ( Commission ) announced
today
     that it filed and simultaneously settled enforcement proceedings
against
     Venator Group, Inc., formerly known as Woolworth Corporation
(hereinafter
     referred to as  Woolworth  or  the company ), and four of its former
senior
     officers, based on Woolworth s material misstatement in filings with
the
     Commission of its quarterly financial results for the first three
quarters
     of its fiscal year 1993, and for the fourth quarter of fiscal 1993 in
a
     company press release.

          In a cease-and-desist proceeding against Woolworth, which the
company
     simultaneously settled without admitting or denying the Commission s
     allegations, the Commission found that former officers at Woolworth and
two
     of its major subsidiaries, Kinney Shoe Corporation ( Kinney Shoe ) and
     Woolworth Canada Inc. ( Woolworth Canada ), engaged in a scheme to
manage
     the company s reported earnings by inflating profits in early quarters,
so
     that Woolworth could report positive earnings.  Results were then
adjusted
     in subsequent quarters so that results would be accurate by year-end.

SNIPPETS:

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission announced today that it filed and simultaneously

In a cease-and-desist proceeding against Woolworth, which the company simultaneously settled

In a separate Complaint, seeking permanent injunctions and monetary relief in the United

Adler, the Commission alleged that the fraud was accomplished at the direction, or with the

The Complaint also alleges that the fraud was conducted by the chief financial officers of

Canada, Inc., both of whom falsified the subsidiaries quarterly results by understating cost

Gamble, former chief financial officer at Woolworth Canada, in the related cease-and-desist

Without admitting or denying the findings, Gamble consented to the entry of the Order.

The Complaint against Young and Adler alleges that they violated Section 10of the Securities

defendants aided and abetted Woolworth s violations of Sections 13, 13and 13of the Exchange

Simultaneous with the filing of the Commission s Complaint, Young and Adler, without

The Order makes further findings that, Gamble, under pressure from Woolworth to report strong


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