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1
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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
CRAWFORD SECURITIES COMPLAINT ALLEGES EXCHANGE COMMISSION SCHEME FILING COURT COLORADO PUBLICLY-HELD REIMBURSEMENT EXPENSES INFLATING BRUCE RICHARD BOOKS PUBLICLY-DISTRIBUTED FINANCIAL STATEMENTS INDEPENDENT AUDITORS ADMITTING DENYING ALLEGATIONS ENTRY ORDER REQUIRING PENALTY ENJOINING VIOLATIONS ACT PROMULGATED THEREUNDER PROPOSED SETTLEMENT PENDING |
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
LITIGATION RELEASE NO. 15392 / June 24, 1997
ACCOUNTING AND AUDITING ENFORCEMENT
RELEASE NO. 928 / June 24, 1997
SECURITIES AND EXCHANGE COMMISSION v. BRUCE A. MILLIKEN and
RICHARD
A. CRAWFORD, Civil Action No. 97-D-1314 (D.Colo).
The Securities and Exchange Commission ("Commission') announced
the
filing of an injunctive complaint on June 24, 1997 in federal
district
court in Denver, Colorado against the two former chief executives of
Random
Access, Inc. Random, a former publicly-held Colorado-based computer
reseller, was acquired by privately-held Entex Information Services,
Inc.
in 1995. The complaint arose from Random's scheme to generate revenue
by
obtaining from its suppliers reimbursement for undocumented
promotional
expenses.
The Commission's complaint alleges that from 1991 through
approximately January 1993, Bruce A. Milliken, then the chairman of
Random's board of directors, and Richard A. Crawford, then Random's
president, knew of and condoned the company's practice of submitting
false
or inflated expense reimbursement claims to certain of the hardware
and
software manufacturers with which it did business. The complaint
further
alleges that, as part of the scheme, Random's employees created sham
invoices and otherwise falsified the books and records of the company,
and
that Milliken and Crawford knew or should have known of these actions.
Further, the complaint alleges that Milliken and Crawford knew or
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