SEC v JOSEPH C. ALLEGRA,DAVID HERSH, J. LEE LEDBETTER


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Keywords & Phrases

CaseNo: LR-15384, CourtCode: FED, CourtName: IT FILED A CIVIL INJUNCTIVE ACTION IN FEDERAL COURT IN MANHATTAN, Defendant: Joseph C. Allegra,David Hersh, J. Lee Ledbetter, Plaintiff: SEC, State: DC Washington D.C., UniqueCaseRef: SEC>LR-15384, Exchange Act, Complaint, Hersh, Ledbetter, Alleges, Securities, Allegra, Officer, Violations, Net Income, Clyburn, Civil Money Penalty, Publicly-held, Engaging, Exchange Commission, Accounting, Reports, Age, Fraudulent, Financial Statements, Judgment Permanently Enjoining, Recording, Connection, Liable Pursuant, Issuance, Committing Future Violations, Chief, Executive Vice President, Directors, Health Care , ContentID: 120242676

Case Documents

1997-06-11

SEC LITIGATION RELEASE
[ see first page and extracted highlights below ] ItemID: 105770

5 pages
TXT

Total Documents: 1 document , 5 pages

Price: $ 19.95

IVESLCD01 KGI0001

1 . SEC LITIGATION RELEASE

EXTRACTED KEY WORDS

COMPLAINT
HERSH
LEDBETTER
ALLEGES
SECURITIES
ALLEGRA
OFFICER
VIOLATIONS
NET INCOME
CLYBURN
CIVIL MONEY PENALTY
PUBLICLY-HELD
ENGAGING
EXCHANGE COMMISSION
ACCOUNTING
REPORTS
AGE
FRAUDULENT
FINANCIAL STATEMENTS
JUDGMENT PERMANENTLY ENJOINING
RECORDING
CONNECTION
LIABLE PURSUANT
ISSUANCE
COMMITTING FUTURE VIOLATIONS
CHIEF
EXECUTIVE VICE PRESIDENT
DIRECTORS
HEALTH CARE







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                          SECURITIES AND EXCHANGE COMMISSION
                         Washington D.C.


Litigation Release No. 15384 / June 11, 1997

Accounting and Auditing Enforcement
Release No. 923 / June 11, 1997

SECURITIES AND EXCHANGE COMMISSION v. JOSEPH C. ALLEGRA, DAVID
HERSH, J. LEE LEDBETTER and H. FLYNN CLYBURN, 97 Civ. 4305 (SS)
(S.D.N.Y. June 11, 1997)

     The Securities and Exchange Commission announced today that
it filed a civil injunctive action in federal court in Manhattan
charging four former senior officers of T2 Medical, Inc. ("T2")
with carrying out a financial fraud scheme that materially
inflated T2's reported net income in each of the first two
quarters of T2's fiscal year ended September 30, 1993 ("FY
1993"), and charging one of those officers with illegal insider
trading.

Named in the Commission's complaint were:

     Joseph C. Allegra ("Allegra"), age 48, was T2's president
and chief executive officer and a member of T2's board of
directors during the time of the events alleged in the complaint.

Allegra resigned from all three positions in August 1993.

     David Hersh ("Hersh"), age 33, was T2's chief financial
officer, treasurer and secretary during the time of the events
alleged in the complaint.  Hersh was placed on administrative
leave in August 1993 and left T2 in December 1993.  Hersh is a
certified public accountant.

     J. Lee Ledbetter ("Ledbetter"), age 51, was T2's chief
operating officer and senior executive vice president during the
time of the events alleged in the complaint.  Ledbetter resigned
from T2 in October 1993.

SNIPPETS:

SECURITIES AND EXCHANGE COMMISSION

Accounting and Auditing Enforcement

SECURITIES AND EXCHANGE COMMISSION v. JOSEPH C. ALLEGRA, DAVID HERSH, J. LEE LEDBETTER and H.

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

Joseph C. Allegra, age 48, was T2's president and chief executive officer and a member of

David Hersh, age 33, was T2's chief financial officer, treasurer and secretary during the

J. Lee Ledbetter, age 51, was T2's chief operating officer and senior executive vice

H. Flynn Clyburn, age 48, was an executive vice president at T2 during the time of the events

During the time of the events alleged in the complaint, T2 was a national provider of

T2 merged with three other publicly-held health care companies in July 1994 to form Coram

The complaint also alleges that Hersh further inflated T2's reported net income during FY

* Recording in the Second Quarter the gain from an asset sale that occurred in the next

* Making fictitious entries in connection with T2's acquisition of certain companies in March

The complaint alleges that as a result of these fraudulent practices, T2's net income was

* Allegra consented to the issuance of a final judgment permanently enjoining him from

In addition, Hersh agreed to pay a civil money penalty of $100,000.


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