UNITED STATES SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE NO. 15784 / JUNE 17, 1998
ACCOUNTING AND AUDITING ENFORCEMENT
RELEASE NO. 1045 / JUNE 17, 1998
SECURITIES AND EXCHANGE COMMISSION v. GUY MARCEL DE VREESE,
Civil Action No. 98-4866RJK (MANs) (C.D. Cal.).
The Securities and Exchange Commission filed a complaint today in the
United States District Court for the Central District of California
seeking
a judgment of permanent injunction and other relief against defendant
Guy
Marcel De Vreese ("De Vreese"), 42, of Ghent, Belgium. The complaint
charges De Vreese with violating the antifraud, reporting,
recordkeeping,
internal controls, and lying to an accountant provisions of the
federal
securities laws [Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of
the
Securities Exchange Act of 1934 and Rules 10b-5,
12b-20, 13a-1, 13a-13, 13b2-1 and 13b2-2 thereunder]. De Vreese
consented
to the entry of the injunction without admitting or denying the
Commission's allegations. De Vreese was not ordered to pay civil
penalties, based on his demonstrated financial inability to pay.
In its complaint, the Commission alleged that De Vreese was the chief
executive officer and chairman of the board of directors of Styles on
Video, Inc. ("Styles"), formerly located in Newbury Park, California.
De
Vreese served in these roles during the period that Styles' common
stock
traded on the American Stock Exchange, from March 29, 1993 through
December
27, 1994. Styles, now bankrupt, developed and marketed computer
imaging
systems, such as the Styles on Video System which allows the operator
to
produce a videotape showing what a salon customer would look like
wearing
different hairstyles. Under De Vreese's direction, Styles falsely
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
GUY MARCEL DE VREESE, Civil Action No. 98-4866RJK (C.D.
The Securities and Exchange Commission filed a complaint today in the United States District
The complaint charges De Vreese with violating the antifraud, reporting, recordkeeping,
De Vreese was not ordered to pay civil penalties, based on his demonstrated financial
In its complaint, the Commission alleged that De Vreese was the chief executive officer and
Vreese served in these roles during the period that Styles' common stock traded on the
Under De Vreese's direction, Styles falsely reported to the public increasing profitability
Styles had actually sustained losses in those periods.
The Commission alleged that under De Vreese's direction, Styles materially overstated revenue
ùfor the second quarter of 1994, overstated revenue by 137% and understated losses by 306%
million license agreement not consummated; and ùfor the third quarter of 1994, overstated
materially overstate in its third quarter 1994 Form 10-QSB its September
1994 cash balance by the purported $1.4 million cash collection.
The Commission further alleged that De Vreese handled substantive communications with third
De Vreese supervised Styles' accounting activities.
With respect to the second and third quarters 1994 revenue overstatements and loss
The Complaint also alleges that, in March 1996 and under new management, Styles amended its
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