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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 14819 / February 16, 1996
Accounting and Auditing Relaease No. 761 / February 16, 1996
SEC v. MICHAEL MONUS, PATRICK FINN, JOHN ANDERSON AND JEFFREY
WALLEY, Case No. 4:95 CV 975, (N.D. OH, filed May 2, 1995)
The Securities and Exchange Commission announced that an
Agreed Order of Permanent Injunction was entered against
John Anderson on January 10, 1996, by the Honorable Kathleen
O'Malley, District Court Judge for the Northern District of
Ohio. The Order enjoins Anderson from violating the
antifraud provisions of the federal securities laws,
specifically Section 17(a) of the Securities Act and Section
10(b) of the Exchange Act and Rule 10b-5 thereunder.
Additionally, the Order imposes a $10,000 civil penalty
against Anderson.
Previously, on May 2, 1995, the Commission filed a complaint
against John Anderson, as well as Jeffrey Walley, Patrick
and Michael Monus, alleging violations of the antifraud
provisions of the securities laws. The Complaint alleged
that from at least 1987 through 1992, Monus, Finn and
Anderson, and, beginning in July 1990, Walley, while
employed at Phar-Mor, Inc., engaged in a fraudulent scheme
in which they falsified Phar-Mor's books, records and
financial statements in order to artificially increase
corporate profits. As a result of the defendants'
fraudulent activities, from fiscal year 1987 through 1991,
Phar-Mor cumulatively overstated income by $290 million.
(In fiscal year 1992, the year in which the fraud was
detected, Phar-Mor overstated income by approximately $238
million.) Further, the complaint alleged, false financial
statements and records concealed Phar-Mor's growing
financial problems and, during the course of the fraudulent
scheme, induced investors to invest over $500 million in
Phar-Mor.
SNIPPETS:
The Securities and Exchange Commission announced that an Agreed Order of Permanent Injunction
The Order enjoins Anderson from violating the antifraud provisions of the federal securities
Additionally, the Order imposes a $10,000 civil penalty against Anderson.
Previously, on May 2, 1995, the Commission filed a complaint against John Anderson, as well
The Complaint alleged that from at least 1987 through 1992, Monus, Finn and Anderson, and,
As a result of the defendants' fraudulent activities, from fiscal year 1987 through 1991,
(In fiscal year 1992, the year in which the fraud was detected, Phar-Mor overstated income by
Further, the complaint alleged, false financial statements and records concealed Phar-Mor's
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