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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 14760 / December 18, 1995
Accounting and Auditing Enforcement
Release No. 741 / December 18, 1995
SEC v. SANI-TECH INDUSTRIES, INC., STANLEY J. WASSERMAN and
GERALD M. KUDLER, C.A. 94-4535 (ADS) U.S.D.C., E.D.N.Y.
NEW YORK -- The United States Securities and Exchange Commission
(Commission) today announced that, on November 30, 1995, the
Honorable Arthur D. Spatt, United States District Judge for the
Eastern District of New York, entered a Final Judgment of
Permanent Injunction by Consent against Gerald M. Kudler
(Kudler). The Final Judgment enjoins Kudler from violations of
Section 10(b) of the Securities Exchange Act of 1934 and Rule
10b-5 thereunder, as well as Rule 13b2-1. Kudler consented to
the Final Judgment without admitting or denying the allegations
in the Commission's Complaint, which was filed on September 27,
1994. The Final Judgment also orders disgorgement and
prejudgment interest in the amount of $23,000 but waives the
payment of the disgorgement and prejudgment interest based on
Kudler's demonstrated inability to pay. Based on Kudler's
demonstrated inability to pay, the Final Judgment does not impose
civil penalties.
The Complaint alleges that Kudler violated Section 10(b) of
the Exchange Act and Rule 10b-5 thereunder, the antifraud
provisions, by preparing false and misleading annual and
quarterly reports for Sani-Tech Industries, Inc. (Sani-Tech),
which were then filed with the Commission. Among other things,
the Complaint alleges that Kudler prepared the financial
statements which were included in Sani-Tech's annual reports and
then purported to audit these same financial statements through
Auditors and Consultants, Inc. (A&C), an accounting firm owned by
Kudler. The Complaint also alleges that Kudler, through A&C,
issued audit opinions on Sani-Tech's financial statements which
were also included in Sani-Tech's annual reports, representing
that Sani-Tech's financial statements had been prepared in
accordance with generally accepted accounting principles (GAAP)
and that they had been audited by a certified public accountant,
when, in fact, Sani-Tech's financial statements were not
presented in accordance with GAAP and neither Kudler nor A&C were
certified public accountants. The Complaint also alleges that
SNIPPETS:
GERALD M. KUDLER, C.A. 94-4535 U.S.D.C., E.D.N.Y.
NEW YORK -- The United States Securities and Exchange Commission
today announced that, on November 30, 1995, the Honorable Arthur D. Spatt, United States
The Final Judgment enjoins Kudler from violations of Section 10of the Securities Exchange Act
Kudler consented to the Final Judgment without admitting or denying the allegations in the
The Final Judgment also orders disgorgement and prejudgment interest in the amount of $23,000
The Complaint alleges that Kudler violated Section 10of the Exchange Act and Rule 10b-5
Among other things, the Complaint alleges that Kudler prepared the financial statements which
The Complaint also alleges that Kudler, through A&C, issued audit opinions on Sani-Tech's
rtified public accountants.
The Complaint also alleges that Kudler violated Rule 13b2-1 promulgated under the Exchange
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