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SEC v SUNBEAM CORPORATION Click to find out why . . .



Keywords & Phrases
CaseNo: 33-7976, Defendant: Sunbeam Corporation, Plaintiff: SEC, UniqueCaseRef: SEC>33-7976, Sunbeam, Sales, Exchange Act, Accounting, Securities Act, Commission, Management, Administrative Proceedings, Earnings, Reserves, Income, Financials, Bill, Revenue, Customers, Restructuring, Financial Statements, Findings, Sunbeam Corporation, Transaction, Accelerated Sales, Materially False, Gaap Requirements, Approximations, Misleading, Disclosure, Stock Price, Substantial Business Purpose, Purchase Orders, Earnings Shortfall , ContentID: 120244010

Case Documents
1 2001-05-15 SEC ADMINISTRATIVE PROCEEDING
[ see first page and extracted highlights below  ] ItemID: 110744
21 pages
TXT
Total Documents: 1 document , 21 pages
Price: $ 19.95


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1 . SEC ADMINISTRATIVE PROCEEDING

EXTRACTED KEY WORDS
SALES
EXCHANGE ACT
ACCOUNTING
SECURITIES ACT
COMMISSION
MANAGEMENT
ADMINISTRATIVE PROCEEDINGS
EARNINGS
RESERVES
INCOME
FINANCIALS
BILL
REVENUE
CUSTOMERS
RESTRUCTURING
FINANCIAL STATEMENTS
FINDINGS
SUNBEAM CORPORATION
TRANSACTION
ACCELERATED SALES
MATERIALLY FALSE
GAAP REQUIREMENTS
APPROXIMATIONS
MISLEADING
DISCLOSURE
STOCK PRICE
SUBSTANTIAL BUSINESS PURPOSE
PURCHASE ORDERS
EARNINGS SHORTFALL
   UNITED STATES OF AMERICA
   Before the
   SECURITIES AND EXCHANGE COMMISSION

   SECURITIES ACT OF 1933
   Release No. 7976 / May 15, 2001

   SECURITIES EXCHANGE ACT OF 1934
   Release No. 44305 / May 15, 2001

   ACCOUNTING AND AUDITING ENFORCEMENT
   Release No. 1393 / May 15, 2001

   ADMINISTRATIVE PROCEEDING
   File No. 3-10481
     _________________________________________________________________

   In the Matter of

   SUNBEAM CORPORATION,

   Respondent.
     _________________________________________________________________

   ORDER INSTITUTING PUBLIC
   ADMINISTRATIVE PROCEEDINGS,
   PURSUANT TO SECTION 8A OF THE
   SECURITIES ACT OF 1933 AND
   SECTION 21C OF THE SECURITIES
   EXCHANGE ACT OF 1934, MAKING
   FINDINGS, AND IMPOSING A
   CEASE-AND-DESIST ORDER

                                     I.

   The Securities and Exchange Commission ("Commission") deems it
   appropriate that public administrative proceedings be, and hereby are,
   instituted with respect to Sunbeam Corporation ("Sunbeam" or the
   "Company") pursuant to Section 8A of the Securities Act of 1933
   ("Securities Act") and Section 21C of the Securities Exchange Act of
   1934 ("Exchange Act").

                                    II.

   In anticipation of the institution of these administrative
   proceedings, Sunbeam has submitted an Offer of Settlement ("Offer")
   that the Commission has determined to accept. Solely for the purpose
   of these proceedings, and any other proceeding brought by or on behalf
SNIPPETS:
  • ORDER INSTITUTING PUBLIC ADMINISTRATIVE PROCEEDINGS, PURSUANT TO SECTION 8A OF THE SECURITIES
  • The Securities and Exchange Commission deems it appropriate that public administrative
  • From the last quarter of 1996 until June 1998, Sunbeam Corporation's senior management
  • management employed numerous improper earnings management techniques to falsify the Company's
  • Specifically, senior management created $35 million in improper restructuring reserves and
  • Also in 1997, Sunbeam's management engaged in guaranteed sales, improper "bill and hold"
  • at least $62 million of Sunbeam's reported income of $189 million came from accounting fraud.
  • Management engaged in additional accelerated sales and sales for which revenue was improperly
  • This resulted in the termination of certain members of senior management, including Sunbeam's
  • To this end, management used 1996 reserves to boost Sunbeam's earnings and margins, and
  • Although Sunbeam had announced its intention to divest certain non-core product lines in its
  • Incurring no expenses in this transaction, the wholesaler in fact returned all of the grills
  • Beginning with the first quarter of 1997, moreover, Sunbeam achieved its sales goals, in
  • This practice of accelerating expected sales from later periods into the present quarter
  • As members of Sunbeam management knew or were reckless in not knowing, these misstatements
  • It is also not the case that the buyer has "a substantial business purpose for ordering the
  • Having previously initiated the process of discounting to accelerate sales, Sunbeam was
  • Therefore, Sunbeam had insufficient information to set an appropriate level of reserves for
  • This Order is not intended to and does not contain findings regarding the scope or accuracy
  • numbers are given as approximations.
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