UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES ACT OF 1933
Release No. 7631 / January 21, 1999
SECURITIES EXCHANGE ACT OF 1934
Release No. 40958 / January 21, 1999
ACCOUNTING AND AUDITING ENFORCEMENT
Release No. 1101 / January 21, 1999
ADMINISTRATIVE PROCEEDING
File No. 3-9814
In the Matter of
TONY FIORINO,
Chartered Accountant,
Respondent.
ORDER INSTITUTING PUBLIC
PROCEEDINGS PURSUANT TO
RULE 102(e) OF THE COMMISSION'S
RULES OF PRACTICE, MAKING
FINDINGS AND IMPOSING
REMEDIAL SANCTIONS
I.
The Securities and Exchange Commission ("Commission") deems it
appropriate and in the public interest that a public administrative
proceeding be, and hereby is, instituted against Tony Fiorino
("Fiorino" or the "respondent") pursuant to Rule 102(e)(1)(ii) and
(iii) of the Commission's Rules of Practice. Fiorino is a Chartered
Accountant, the Canadian equivalent of a Certified Public Accountant.
II.
In anticipation of the institution of these proceedings, Fiorino has
submitted an Offer of Settlement ("Offer") 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, without admitting or denying the
findings set forth below, except as to jurisdiction of the Commission
over him and over the subject matter of these proceedings, which the
respondent admits, the respondent consents to the entry of this Order
Instituting Public Proceedings Pursuant to Rule 102(e) of the
SNIPPETS:
SECURITIES ACT OF 1933
Chartered Accountant, Respondent.
RULES OF PRACTICE, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS
The Securities and Exchange Commission deems it appropriate and in the public interest that a
Fiorino is a Chartered Accountant, the Canadian equivalent of a Certified Public Accountant.
Solely for the purpose of these proceedings, and any other proceedings brought by or on
indings and Imposing Remedial Sanctions set forth below.
From 1989 until December 14, 1998, Fiorino worked as the Theater Controller at Livent Inc., a
Livent became a public company in Canada in May 1993, and pursuant to Section 12of the
On November 18 and 19, 1998, respectively, Livent declared bankruptcy in the United States
The former senior management of Livent engaged in a multi-faceted and pervasive accounting
While in possession of material non-public information concerning the fraudulent conduct at
Former senior management's manipulation of income for eight years caused Livent to file with
Livent reported pre-tax earnings of $2.9 million.
As a further result of the scheme, Livent reported preproduction costs or fixed assets that
First, the staff transferred preproduction costs for shows to fixed asset accounts such as
Second, the accounting staff, at the end of each quarter, simply removed certain expenses and
During these meetings, the group discussed the manipulations, and agreed on the approximate
Fiorino participated in the fraudulent ticket purchase scheme by arranging the ticket
As a Chartered Accountant, the Canadian equivalent of a CPA, Fiorino is a professional
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