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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
SECURITIES AND EXCHANGE COMMISSION v. COMPARATOR SYSTEMS
CORPORATION, ROBERT REED ROGERS, SCOTT HITT AND GREGORY ARMIJO,
Civil Action No. 96-3856 (LGB) (JGx) (C.D. Cal.)
Litigation Release No. 15056 / September 19, 1996
Accounting and Auditing Enforcement
Release No. 819 / September 19, 1996
The U.S. Securities and Exchange Commission announced today
that on September 16, 1996, the Honorable Lourdes G. Baird,
United States District Judge, entered a Final Judgment against
defendant Comparator Systems Corporation and also entered
judgments against defendants Robert Reed Rogers and Gregory
Armijo. The Final Judgment against Comparator permanently
restrains and enjoins Comparator from violating the anti-fraud,
reporting, and books and records provisions of the securities
laws, specifically Section 17(a) of the Securities Act of 1933
and Sections 10(b), 13(a), and 13(b)(2)(A)-(B) of the Securities
Exchange Act of 1934 ("Exchange Act") and Rules 10b-5, 13a-1,
13a-13, and 12b-20 thereunder. The judgments against defendants
Rogers and Armijo permanently restrain and enjoin Rogers and
Armijo from violating those same provisions, as well as Section
13(b)(5) of the Exchange Act and Rule 13b2-1; permanently bar
Rogers and Armijo from serving in the future as an officer or
director of any public corporation; and continue the freezes on
Rogers's and Armijo's assets (subject to allowances for
reasonable living expenses) pending the determination, following
further discovery, of the appropriate amount of disgorgement and
penalties to be paid by those defendants. The judgments permit
Comparator's new management to employ Rogers and Armijo as
consultants for a limited period, with restrictions on their
compensation, and forbid Comparator from transferring any item of
value to defendant Scott Hitt, against whom the litigation
continues. Comparator, Rogers, and Armijo consented to the entry
of the foregoing judgments without admitting or denying the
allegations of the Commission's Complaint.
The Complaint, filed on May 31, 1996, alleged that
Comparator issued false and misleading financial statements for
the fiscal years ending June 30, 1994 and June 30, 1995 and for
the first three quarters of fiscal year 1996, which grossly
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION v. COMPARATOR SYSTEMS
CORPORATION, ROBERT REED ROGERS, SCOTT HITT AND GREGORY ARMIJO,
The Final Judgment against Comparator permanently restrains and enjoins Comparator from
The judgments against defendants Rogers and Armijo permanently restrain and enjoin Rogers and
those defendants.
The judgments permit Comparator's new management to employ Rogers and Armijo as consultants
Comparator, Rogers, and Armijo consented to the entry of the foregoing judgments without
The Complaint further alleges that defendants Rogers, Armijo, and Hitt caused Comparator to
In a related matter, the Commission has instituted administrative proceedings against Eli
Simultaneously, the Commission accepted Buchalter and the Buchalter Corp.'s offers of
The Commission's Order Instituting Proceedings finds that Buchalter and the Buchalter Corp.
See Securities Exchange Act of 1934 Release No. 37702 and Accounting and Auditing Enforcement
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