SEC v WASTE MANAGEMENT, INC - Legal Case Documents


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SEC v WASTE MANAGEMENT, INC

Keywords & Phrases

CaseNo: 34-42968, Defendant: Waste Management, Inc., Plaintiff: SEC, UniqueCaseRef: SEC>34-42968, Management, Waste, Wmi, Accounting, Exchange Act, Commission, Management Information, Proceeding, Earnings, Findings, Price, Securities Exchange Act, Revenue, Operating, Shortfall, Conversion, Anticipation, Settlement, Projections, Internal Controls Provisions, Senior Management, Combined Entity, Reasonable Basis, Consolidation, Material Fact, Administrative Proceeding, Public Cease-and-desist Proceedings, Wmi Consents, Systems Problems, Reliable Information , ContentID: 120244590

Case Documents

2000-06-21

SEC ADMINISTRATIVE PROCEEDING
[ see first page and extracted highlights below ] ItemID: 111324

14 pages
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Total Documents: 1 document , 14 pages

Price: $ 19.95

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1 . SEC ADMINISTRATIVE PROCEEDING

EXTRACTED KEY WORDS

WASTE
WMI
ACCOUNTING
EXCHANGE ACT
COMMISSION
MANAGEMENT INFORMATION
PROCEEDING
EARNINGS
FINDINGS
PRICE
SECURITIES EXCHANGE ACT
REVENUE
OPERATING
SHORTFALL
CONVERSION
ANTICIPATION
SETTLEMENT
PROJECTIONS
INTERNAL CONTROLS PROVISIONS
SENIOR MANAGEMENT
COMBINED ENTITY
REASONABLE BASIS
CONSOLIDATION
MATERIAL FACT
ADMINISTRATIVE PROCEEDING
PUBLIC CEASE-AND-DESIST PROCEEDINGS
WMI CONSENTS
SYSTEMS PROBLEMS
RELIABLE INFORMATION

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

   Securities Exchange Act of 1934
   Release No. 42968 / June 21, 2000

   Accounting and Auditing Enforcement
   Release No. 1277 / June 21, 2000

   Administrative Proceeding
   File No. 3-10238

   ___________________________________
   In the Matter of
                                        ORDER INSTITUTING
                                        PROCEEDINGS PURSUANT
   WASTE MANAGEMENT, INC.               TO SECTION 21C OF THE
                                        SECURITIES EXCHANGE
                                        ACT OF 1934, MAKING
                                        FINDINGS, AND IMPOSING
                                        A CEASE-AND-DESIST ORDER
   ____________________________________

   I.

   The Commission deems it appropriate that public cease-and-desist
   proceedings be, and hereby are, instituted against Waste Management,
   Inc. ("WMI" or the "company") pursuant to Section 21C of the
   Securities Exchange Act of 1934 (the "Exchange Act").

   II.

   In anticipation of the institution of these administrative
   proceedings, WMI has submitted an Offer of Settlement, which the
   Commission has determined to accept. Solely for the purpose of this
   proceeding and any other proceedings brought by or on behalf of the
   Commission or to which the Commission is a party, and without
   admitting or denying the findings set forth herein, except as to the
   Commission's jurisdiction over it, which is admitted, WMI consents to
   the entry of the findings and to the issuance of this Order
   Instituting Proceedings Pursuant To Section 21C of the Securities
   Exchange Act of 1934, Making Findings, and Imposing A Cease-and-Desist
   Order ("Order").

   III.

   BACKGROUND

SNIPPETS:

Administrative Proceeding

The Commission deems it appropriate that public cease-and-desist proceedings be, and hereby

In anticipation of the institution of these administrative proceedings, WMI has submitted an

Solely for the purpose of this proceeding and any other proceedings brought by or on behalf

This matter involves WMI's violations of the antifraud, books and records and internal

Although the earlier projections may have had a reasonable basis when first disseminated, by

WMI's violation of the books and records and internal control provisions of the securities e it should have been clear to the company that it simply could not generate information from which

On July 6, 1999, after the close of the market, the company announced that it anticipated a

On July 7, 1999, the company's share price went from $53.56 to $33.94 per share and continued

By August 4, after the company announced its second quarter operating earnings, the company's

In the period surrounding the announcement and completion of the merger, USA and Old Waste

By the first quarter of 1999, WMI senior management had begun to accompany these annual

The systems conversion did not progress as planned.

In making their synergy assumptions from data provided by the companies, both financial

Numerous systems problems in the early months of 1999 caused significant delays in the

The combination of a significant rise in accounts receivable and the mounting evidence of

Section 10of the Exchange Act and Rule 10b-5 thereunder prohibit any person, in connection


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