SEC v 3NET SYSTEMS, INC - Legal Case Documents


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SEC v 3NET SYSTEMS, INC

Keywords & Phrases

CaseNo: 33-7344, Defendant: 3Net Systems, Inc., Plaintiff: SEC, UniqueCaseRef: SEC>33-7344, Exchange Act, Failsafe, Securities Act, Revenue, Commission, Contracts, Form S-18, Proceeding, Customers, Pursuant, Respondent, Accounting, Findings, Completion Method, Hardware, Misleading, Aicpa Sop, Completed Contract Method, Violations, Gaap, Thereunder, Contract Phases, Material Facts, Financial Statements, Desist Order, Overstating, Recognizing Revenue, Reliably Estimate, Reliably Estimate Progress, Separately Negotiate , ContentID: 120244939

Case Documents

1996-09-30

SEC ADMINISTRATIVE PROCEEDING
[ see first page and extracted highlights below ] ItemID: 111676

11 pages
TXT

Total Documents: 1 document , 11 pages

Price: $ 19.95

IVESLCD01 KGI0001

1 . SEC ADMINISTRATIVE PROCEEDING

EXTRACTED KEY WORDS

FAILSAFE
SECURITIES ACT
REVENUE
COMMISSION
CONTRACTS
FORM S-18
PROCEEDING
CUSTOMERS
PURSUANT
RESPONDENT
ACCOUNTING
FINDINGS
COMPLETION METHOD
HARDWARE
MISLEADING
AICPA SOP
COMPLETED CONTRACT METHOD
VIOLATIONS
GAAP
THEREUNDER
CONTRACT PHASES
MATERIAL FACTS
FINANCIAL STATEMENTS
DESIST ORDER
OVERSTATING
RECOGNIZING REVENUE
RELIABLY ESTIMATE
RELIABLY ESTIMATE PROGRESS
SEPARATELY NEGOTIATE






                         UNITED STATES OF AMERICA
                               Before the
                    SECURITIES AND EXCHANGE COMMISSION


SECURITIES ACT OF 1933
Release No.   7344 / September 30, 1996

SECURITIES EXCHANGE ACT OF 1934
Release No.  37746 / September 30, 1996

ACCOUNTING AND AUDITING ENFORCEMENT
Release No.   833 / September 30, 1996

ADMINISTRATIVE PROCEEDING
File No. 3-9117


------------------------
 In the Matter of      :      ORDER INSTITUTING CEASE-AND-DESIST
                       :      PROCEEDING PURSUANT TO SECTION 8A
 3NET SYSTEMS, INC.    :      OF THE SECURITIES ACT OF 1933
                       :      AND SECTION 21C OF THE SECURITIES
     Respondent.       :      EXCHANGE ACT OF 1934, MAKING
                       :      FINDINGS AND IMPOSING A CEASE-AND-
                       :      DESIST ORDER
------------------------

                              I.

     The Securities and Exchange Commission ("Commission") deems
it appropriate and in the public interest to institute a cease-
and-desist proceeding pursuant to Section 8A of the Securities
Act of 1933 ("Securities Act") and Section 21C of the Securities
Exchange Act of 1934 ("Exchange Act") against 3Net Systems, Inc.
("3Net" or "Respondent").  Accordingly, IT IS HEREBY ORDERED that
said proceeding be, and hereby is, instituted.

                              II.

     In anticipation of the institution of this proceeding,
Respondent has submitted an Offer of Settlement ("Offer") to the
Commission which the Commission has determined to accept.  Solely

SNIPPETS:

SECURITIES EXCHANGE ACT OF 1934

ADMINISTRATIVE PROCEEDING

: PROCEEDING PURSUANT TO SECTION 8A 3NET SYSTEMS, INC.: OF THE SECURITIES ACT OF 1933

: FINDINGS AND IMPOSING A CEASE-AND-: DESIST ORDER

The Securities and Exchange Commission deems it appropriate and in the public interest to

In anticipation of the institution of this proceeding, Respondent has submitted an Offer of

3Net was formed in August 1989 to develop new computer laboratory software known as FAILSAFE.

On August 4, 1992, 3Net filed its Form S-18 registration statement for its initial public

The Form S-18 registration statement was materially false and misleading, making false lly inflated fiscal 1991 and 1992 FAILSAFE revenue.

financial statements for the nine months ended

The Form S-18 was materially false and misleading, including, but not limited to, making