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ADMINISTRATIVE PROCEEDING v ECKSTEIN Click to find out why . . .



Keywords & Phrases
CaseNo: 34-40939, Defendant: ECKSTEIN, Plaintiff: ADMINISTRATIVE PROCEEDING, State: OR Oregon, UniqueCaseRef: SEC>34-40939, Eckstein, Commission, Accounting, Practice, Exchange Act, Livent, Securities Act, Proceeding, Accountant, Drabinsky, Gottlieb, Pursuant, Preproduction Costs, Administrative Proceeding, Making Findings, Financial Statements, Manipulations, Adjustments, Public Company, Fixed Assets, Accounting Staff, Fixed Asset Accounts, Transactions, Fraudulent, Materially False, Senior Management, Pre-tax Earnings, Chartered Accountant, Order Instituting, Imposing Remedial Sanctions , ContentID: 120244542

Case Documents
1 1999-01-13 SEC ADMINISTRATIVE PROCEEDING
[ see first page and extracted highlights below  ] ItemID: 111276
13 pages
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Total Documents: 1 document , 13 pages
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1 . SEC ADMINISTRATIVE PROCEEDING

EXTRACTED KEY WORDS
COMMISSION
ACCOUNTING
PRACTICE
EXCHANGE ACT
LIVENT
SECURITIES ACT
PROCEEDING
ACCOUNTANT
DRABINSKY
GOTTLIEB
PURSUANT
PREPRODUCTION COSTS
ADMINISTRATIVE PROCEEDING
MAKING FINDINGS
FINANCIAL STATEMENTS
MANIPULATIONS
ADJUSTMENTS
PUBLIC COMPANY
FIXED ASSETS
ACCOUNTING STAFF
FIXED ASSET ACCOUNTS
TRANSACTIONS
FRAUDULENT
MATERIALLY FALSE
SENIOR MANAGEMENT
PRE-TAX EARNINGS
CHARTERED ACCOUNTANT
ORDER INSTITUTING
IMPOSING REMEDIAL SANCTIONS
UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

   SECURITIES ACT OF 1933

   Release No. 7629 / January 13, 1999

   SECURITIES EXCHANGE ACT OF 1934

   Release No. 40939 / January 13, 1999

   ACCOUNTING AND AUDITING ENFORCEMENT

   Release No. 1097 / January 13, 1999

   ADMINISTRATIVE PROCEEDING

   File No. 3-9808

   In the Matter of

   GORDON C. ECKSTEIN,
   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 (the "Commission") deems it
   appropriate and in the public interest that a public administrative
   proceeding be, and it hereby is, instituted pursuant to Rule 102(e)(1)
   of the Commission's Rules of Practice against Gordon C. Eckstein
   ("Eckstein").

   II.

   In anticipation of the institution of this proceeding, Eckstein has
   submitted an Offer of Settlement ("Offer"), which the Commission has
   determined to accept. Solely for the purpose of this proceeding and
   any other proceeding brought by or on behalf of the Commission, or to
   which the Commission is a party, and without admitting or denying the
   Commission's findings contained herein, except that Eckstein admits
SNIPPETS:
  • THE COMMISSION'S RULES OF PRACTICE, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS
  • The Securities and Exchange Commission deems it appropriate and in the public interest that a
  • Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of ngs and Imposing Remedial Sanctions set forth below.
  • Eckstein, age 46, is a Canadian citizen and Chartered Accountant, and was Livent's Senior
  • Livent Inc., is a Toronto, Ontario company that produces live theatrical entertainment, such
  • Livent became a public company in Canada in May 1993, and pursuant to Section 12of the
  • The former senior management of Livent engaged in a multi-faceted and pervasive accounting
  • Drabinsky and Gottlieb manipulated income and operating cash flows throughout the relevant
  • While in possession of material nonpublic information concerning the fraudulent conduct at
  • Former sSenior 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 fixed assets that were fraudulently
  • 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, in a more straightforward manipulation, the accounting staff, at the end of each
  • These transactions should have been booked as loans payable rather than as revenue.
  • During these meetings, the group openly discussed the manipulations, and agreed on the
  • Eckstein Violated Section 17of the Securities Act, Sections 10and 13of the Exchange Act,
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