UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC
Litigation Release No. 17641 / July 31, 2002
ACCOUNTING AND AUDITING ENFORCEMENT
Release No. 1606 / July 31, 2002
SECURITIES AND EXCHANGE COMMISSION V. ROYS POYIADJIS, LYCOURGOS KYPRIANOU
AND AREMISSOFT CORP., et al, CIVIL ACTION NO. 01-CV-8903 (CSH) (S.D.N.Y.)
SEC SETTLES FINANCIAL FRAUD CLAIMS AGAINST AREMISSOFT CORPORATION
On July 22, 2002, the Hon. Charles L. Brieant of the United States
District Court for the Southern District of New York signed a Final
Judgment of Permanent Injunction and Other Relief as to Defendant
AremisSoft Corporation, which was a software company with offices in
New Jersey, London, Cyprus, and India. The judgment, to which
AremisSoft consented without admitting or denying the allegations in
the Commission's complaint, prohibits AremisSoft and its successor
entity, Softbrands, Inc., from violating the antifraud and reporting
provisions of the federal securities laws (Section 17(a) of the
Securities Act of 1933 ("Securities Act") and Sections 10(b) and 13(a)
of the Securities Exchange Act of 1934 ("Exchange Act") and Rules
10b-5, 12b-20, 13a-1 and 13a-13 thereunder).
The Commission's complaint alleged, among other things, that
AremisSoft and two of its former officers, Roys Poyiadjis and
Lycourgos Kyprianou, overstated the Company's revenues in its annual
report for 2000 and inflated the value of acquisitions made in 1999
and 2000 and that the two former officers engaged in massive insider
trading during the period of the reporting fraud. AremisSoft
previously consented to a preliminary injunction that was entered by
the Hon. Charles S. Haight, Jr., U.S. District Judge, on October 19,
2001.
AremisSoft filed a petition for relief under Chapter 11 of the
Bankruptcy Code on March 15, 2002. On July 15, 2002, the Hon. Joel A.
Pisano, U.S. District Judge, entered an order confirming AremisSoft's
Chapter 11 Plan and authorizing AremisSoft to enter into the
settlement with the Commission.
In connection with the resolution of the Commission's civil injunctive
action, AremisSoft also consented to the issuance of a Commission
Order, pursuant to Section 12(j) of the Exchange Act, revoking the
registration of AremisSoft's common stock, without admitting or
denying the findings in the Commission's Order. For further
information on this proceeding, Exchange Act Release No. 34-46285.
SNIPPETS:
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON,
SEC SETTLES FINANCIAL FRAUD CLAIMS AGAINST AREMISSOFT CORPORATION
Charles L. Brieant of the United States District Court for the Southern District of New York
The judgment, to which AremisSoft consented without admitting or denying the allegations in
The Commission's complaint alleged, among other things, that AremisSoft and two of its former
AremisSoft previously consented to a preliminary injunction that was entered by the Hon.
Joel A. Pisano, U.S. District Judge, entered an order confirming AremisSoft's Chapter 11 Plan
In connection with the resolution of the Commission's civil injunctive action, AremisSoft
For further information on this proceeding,
The SEC's civil enforcement action remains pending against Poyiadjis, Kyprianou and two
On October 19, 2001 Judge Haight entered a preliminary injunction as to Poyiadjis, Kyprianou
2001 a federal grand jury sitting in the Southern District of New York returned an indictment
These funds had previously been frozen by the High Court of the Isle of Man on application of
2002 the U.S. District Court entered a default judgment in the civil forfeiture action.
|
