SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17175 / October 5, 2001
Accounting and Auditing Enforcement Release No. 1466 / October 5, 2001
Securities and Exchange Commission v. Richard P. Smyth, Arnold E. Johns,
Jr., Michael J. Becker and Alan T. Davis, Civil Action No. 1 01-CV-1344
(N.D. Ga.)
SEC Obtains Permanent Injunction against Richard P. Smyth
The Securities and Exchange Commission ("Commission") announced today
that on September 24, 2001, the Honorable Clarence Cooper of the
United States District Court for the Northern District of Georgia
entered an order of permanent injunction and other relief against
Richard P. Smyth ("Smyth") of Fernandina Beach, Florida for engaging
in a wide-range of securities law violations, including that
misstatements were made by Vista 2000, Inc. ("Vista") in filings with
the Commission. Vista, a now defunct consumer products company, was
formerly headquartered in Roswell, Georgia where Smyth, as Vista's
co-founder, served as chief executive officer and chairman of its
board. Judge Cooper's recent order permanently enjoined Smyth from
further violations of Section 17(a) of the Securities Act of 1933;
Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act")
and Rule 10b-5 thereunder; Section 13(a) of the Exchange Act and Rules
12b-20, 13a-1, 13a-11, 13a-13 thereunder; Sections 13(b)(2)(A) and
13(b)(2)(B) of the Exchange Act; Section 13(b)(5) of the Exchange Act
and Rules 13b2-1 and 13b2-2 thereunder; and Sections 16(a) and 16(c)
of the Exchange Act and Rules 16a-2 and 16a-3 thereunder. The order
also barred Smyth from acting as an officer or director of any issuer
that has a class of securities registered with the Commission pursuant
to Section 12 of the Exchange Act or that is required to file reports
with the Commission pursuant to Section 15(d) of the Exchange Act.
Smyth was ordered to pay disgorgement and pre-judgment interest in
amounts to be resolved upon motion of the Commission at a later date.
Smyth consented to the entry of the order, without admitting or
denying the allegations of the Commission's complaint.
The Securities and Exchange Commission previously sued Smyth and three
other men for various violations of the federal securities law. The
remaining defendants are Arnold E. Johns, Jr. of Atlanta, Georgia,
Alan T. Davis of Gainesville, Georgia and Michael J. Becker of
Marietta, Georgia. Johns, Becker and Smyth are former officers of
Vista. Johns was a director of Vista and its president, and Becker was
Vista's chief financial officer. Davis was Vista's outside auditor.
The litigation is continuing as to Johns, Becker and Davis.
The Commission's complaint alleged a wide-range of securities law
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
Securities and Exchange Commission v. Richard P. Smyth, Arnold E. Johns, Jr., Michael J.
SEC Obtains Permanent Injunction against Richard P. Smyth
The Securities and Exchange Commission announced today that on September 24, 2001, the
Vista, a now defunct consumer products company, was formerly headquartered in Roswell,
Judge Cooper's recent order permanently enjoined Smyth from further violations of Section
The order also barred Smyth from acting as an officer or director of any issuer that has a
Smyth consented to the entry of the order, without admitting or denying the allegations of
The Securities and Exchange Commission previously sued Smyth and three other men for various
The remaining defendants are Arnold E. Johns,
Johns was a director of Vista and its president, and Becker was Vista's chief financial
The litigation is continuing as to Johns,
The Commission's complaint alleged a wide-range of securities law violations, including that
The allegations against Smyth included the following Vista's revenues, income, earnings per
legally sold short Vista stock during 1996 and Smyth engaged in illegal insider selling of Vista
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