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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
COMMISSION RONALD BOLLINGER SECURITIES BOLLINGER INDUSTRIES COMPLAINT EXCHANGE COMMISSION GLENN BOLLINGER VIOLATIONS RECORDING DISTRICT CIVIL PENALTY OFFICER REPORTS PERMANENT INJUNCTION COMPLAINT ALLEGES PROVISIONS TRANSACTIONS SALES CUSTOMER MATERIAL MISSTATEMENTS DEFENDANTS COMMITTED VIOLATIONS FEDERAL SECURITIES LAWS INTERNAL CONTROLS REVENUE MERCHANDISE DETECTION AUDITORS ANNUAL REPORT |
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
LITIGATION RELEASE No. 15093 / September 30, 1996
ACCOUNTING AND AUDITING ENFORCEMENT
RELEASE No. 834 / September 30, 1996
SECURITIES AND EXCHANGE COMMISSION v. BOLLINGER INDUSTRIES, INC.,
GLENN BOLLINGER, AND RONALD BOLLINGER, United States District
Court for the District of Columbia, Civil Action No. 96-CV-02257
(HHG).
The Securities and Exchange Commission ("Commission") today
announced the filing of a complaint in the U.S. District Court
for the District of Columbia seeking a permanent injunction
against Bollinger Industries, Inc., a supplier of consumer
fitness products headquartered in Irving, Texas. The complaint
also seeks a permanent injunction against the company's President
and Chief Executive Officer, Glenn Bollinger, and the company's
former Chief Operating Officer, Ronald Bollinger; seeks civil
penalties against Glenn Bollinger and Ronald Bollinger; and seeks
an officer and director bar against Ronald Bollinger. The
complaint alleges that the defendants committed violations of the
antifraud and books and records provisions of the federal
securities laws, and that the company and Ronald Bollinger
violated the internal controls provisions of the federal
securities laws.
The Commission's complaint alleges that Bollinger Industries
fraudulently overstated its earnings and revenue for fiscal year
1994 and throughout fiscal year 1995 by: (1) recording three
purported "bill and hold" transactions as sales even though the
conditions for recognizing revenue on such transactions had not
been met; (2) recording two transactions as sales even though the
company had guaranteed the customers rights of return; (3)
recording sales in the fourth quarter of fiscal year 1995 for
merchandise which was not actually shipped until after the fiscal
year-end; (4) concealing merchandise returned by one customer in
an off-site warehouse to avoid detection by the company's
accounting department and auditors; and (5) delaying an
additional return from the same customer until after the end of
the fiscal year. The complaint further alleges that Bollinger
Industries materially understated returns due to a failure in the
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