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SEC v PIER 1 IMPORTS, INC Click to find out why . . .



Keywords & Phrases
CaseNo: 34-43301, Defendant: Pier 1 Imports, Inc., Plaintiff: SEC, State: DE Delaware, UniqueCaseRef: SEC>34-43301, Pier, Goldinger, Investments, Herndon, Accounting, Losses, Exchange Act, Commission, Reports, Securities, Futures, Violation, Disclose, Auditors, Management, Clients, Trades, Assets, Funds, Allocating, Confirmation, Matter, Findings, Trading, Concealment, Provisions, Loss, Income, Market, Liquid , ContentID: 120244249

Case Documents
1 2000-09-20 SEC ADMINISTRATIVE PROCEEDING
[ see first page and extracted highlights below  ] ItemID: 110983
8 pages
HTML
Total Documents: 1 document , 8 pages
Price: $ 19.95


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1 . SEC ADMINISTRATIVE PROCEEDING

EXTRACTED KEY WORDS
GOLDINGER
INVESTMENTS
HERNDON
ACCOUNTING
LOSSES
EXCHANGE ACT
COMMISSION
REPORTS
SECURITIES
FUTURES
VIOLATION
DISCLOSE
AUDITORS
MANAGEMENT
CLIENTS
TRADES
ASSETS
FUNDS
ALLOCATING
CONFIRMATION
MATTER
FINDINGS
TRADING
CONCEALMENT
PROVISIONS
LOSS
INCOME
MARKET
LIQUID
UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION

   SECURITIES EXCHANGE ACT OF 1934
   Release No. 43301 / September 19, 2000

   ACCOUNTING AND AUDITING ENFORCEMENT
   Release No. 1303 / September 19, 2000

   ADMINISTRATIVE PROCEEDING
   File No. 3-10289
   In the Matter of

   PIER 1 IMPORTS, INC.

   Respondent.
   Order Instituting Public Administrative Proceedings, Making Findings,
   and Imposing a Cease-and-Desist Order

   I.

   The Commission deems it appropriate that public administrative
   proceedings be, and hereby are, instituted against Pier 1 Imports,
   Inc. ("Pier 1") pursuant to Section 21C of the Securities Exchange Act
   of 1934 (Exchange Act).

   II.

   In anticipation of the institution of these proceedings, Pier 1 has
   submitted an offer of settlement, which the Commission has determined
   to accept. Solely for the purpose of these proceedings and any other
   proceedings brought by or on behalf of the Commission or in which the
   Commission is a party, and without admitting or denying the findings,
   except that Pier 1 admits that the Commission has jurisdiction over it
   and over the subject matter of these proceedings, Pier 1 consents to
   the entry of the findings and the imposition of the cease-and-desist
   order set forth below.

   III.

   The Commission finds the following

   A. FACTS

   1. Respondent Pier 1 Imports, Inc.

   Pier 1 is a Delaware corporation with headquarters in Fort Worth,
SNIPPETS:
  • SECURITIES AND EXCHANGE COMMISSION
  • The Commission deems it appropriate that public administrative proceedings be, and hereby
  • Solely for the purpose of these proceedings and any other proceedings brought by or on behalf
  • This matter involves Pier 1's failure to properly account for and timely disclose investment
  • Pier 1's accounting and disclosure failures were caused by two interrelated frauds, one by
  • First, from at least 1986 through most of 1995, S. Jay Goldinger, a Beverly Hills-based bond
  • One of his clients was Pier 1,
  • CURRENT ASSETS PRETAX INCOME
  • Goldinger secretly commingled the funds and placed an enormous number of self-hedging trades
  • These investments were inherently speculative.
  • Herndon's fraud involved his concealment of various aspects of Pier 1's investments with
  • This concealment began in 1986 with the first trade Goldinger placed for Pier 1, and ended in
  • As Pier 1's CFO, Herndon personally supervised all aspects of Pier 1's relationship with
  • Fiscal Year 1995 Herndon Makes False Statements to Auditors and Falsifies Audit Confirmation
  • However, from at least fiscal year 1995, Herndon told Pier 1's senior management before each
  • Herndon knew, or was reckless in not knowing, that unless a speculative investment such as a
  • In addition, Herndon knew Pier 1 did not, in fact, use the options and futures trading
  • By the end of fiscal year 1995, Goldinger's misallocation scheme had resulted in a nearly $3
  • Herndon again spoke with Goldinger in August or September, and Goldinger again said that Pier
  • Pier 1 Violated the Reporting Provisions of the Exchange Act.
  • Section 13of the Exchange Act and Rules 13a-1 and 13a-13 thereunder require issuers of
  • No showing of scienter is necessary to establish a violation of these provisions.
  • Herndon caused Pier 1 to violate Section 13and Rule 13a-1 by filing annual reports for fiscal
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