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SEC ADMINISTRATIVE PROCEEDING
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EXTRACTED KEY WORDS
SECURITIES EXCHANGE PHOTRAN ALLEGE EXCHANGE COMMISSION EXCHANGE ACT ACCOUNTING ADMINISTRATIVE PROCEEDING INSTITUTING OCA ALLEGE ENFORCEMENT PAUL BOOKS LAWS REPORTS KNOWING PREMATURE REVENUE DIRECTLY CAUSED FALSE CAUSED FALSE ENTRIES PHOTRAN EMPLOYEE BACKDATE FALSE SHIPMENT PREMATURE REVENUE RECOGNITION INTERNAL ACCOUNTING CONTROLS PROPER DOCUMENTATION THEREUNDER ADMINISTRATIVE LAW JUDGE ALLEGATIONS REMEDIAL SANCTIONS |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
RELEASE NO. 41934 / September 28, 1999
ACCOUNTING AND AUDITING ENFORCEMENT
RELEASE NO. 1183 / September 28, 1999
ADMINISTRATIVE PROCEEDING
File No. 3-10045
PROCEEDINGS INSTITUTED AGAINST PAUL THOMAS FINK, C.P.A,
On September 28, 1999, the Securities and Exchange Commission
instituted public administrative proceedings against Paul T. Fink, the
former CFO and later, CEO, of Photran Corp., a manufacturer of
high-performance, film-coated glass located in Lakeville, Minnesota.
Photran ceased operations in April, 1999 and filed for Chapter 7
bankruptcy protection on May 3, 1999.
In the Order Instituting Proceedings, the Division of Enforcement (the
"Division") and the Office of Chief Accountant ("OCA") allege that
Fink violated the antifraud and books and records provisions of the
federal securities laws by preparing Photran's financial statements
and signing the company's registration statement and periodic reports
filed with the Commission when he knew or was reckless in not knowing
that they contained materially false and misleading financial
information. The Division and OCA further allege that Fink knowingly
falsified and directly caused false entries to be made in Photran's
books and records when he directed a Photran employee to backdate
various documents to report a false shipment date that resulted in
premature revenue recognition. In addition, the Division and OCA
allege that Fink circumvented existing internal accounting controls at
Photran by allowing fictitious and premature revenue to be recorded
without proper documentation. As a result of this conduct, the
Division and OCA allege that Fink violated Section 17(a) of the
Securities Act, Sections 10(b) and 13(b)(5) of the Exchange Act and
Rules 10b-5, 13b2-1 and 13b2-2 thereunder.
A hearing will be held before an administrative law judge to determine
whether the staff's allegations against Fink are true, and if so, what
remedial sanctions are appropriate and in the public interest.
_________________________________________________________________
Modified 09/28/1999
SNIPPETS:
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