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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
SECURITIES EXCHANGE COMMISSION NORTHERN DISTRICT MERCURY JOHN BRINCAT BRADLEY VALLEM ILLINOIS CIVIL ACTION COMPLAINT DISTRICT COURT ALLEGES VALLEM SIGNED FRAUDULENT FRAUDULENT QUARTERLY FILINGS ACT SUIT BANK STATEMENT SHAM TRANSACTION REPORTED COMMERCIAL PAPER COMMERCIAL PAPER BALANCE DESPITE WRONGDOING HONORABLE JAMES ZAGEL UNITED STATES DISTRICT ORDER ENJOINING VALLEM VIOLATIONS THEREUNDER CIVIL PENALTY |
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 17586 / June 25, 2002
Accounting and Auditing Enforcement Release No. 1583
SECURITIES AND EXCHANGE COMMISSION V. JOHN N. BRINCAT, Sr. and BRADLEY
VALLEM, U.S. District Court for the Northern District of Illinois,
Civil Action No. 01 C 2670 (N.D. Ill. January 29, 2002)
The Securities and Exchange Commission announced that an Order of
Permanent Injunction And Other Relief (Order) was entered against
Bradley Vallem (Vallem), the former Treasurer of Mercury Finance Co.
(Mercury), in Securities and Exhange Commission v. John N. Brincat,
Sr. and Bradley Vallem, Civil Action No. 01 C 2670 (Northern District
of Illinois, Eastern Division). Vallem consented to entry of the Order
without admitting or denying any of the allegations made against him
in the complaint filed by the Commission. That complaint, filed in
April 2001, alleged that in 1996, Vallem signed fraudulent quarterly
filings, which overstated Mercury's earnings by millions of dollars.
Also named in the suit was John N. Brincat, Sr., former CEO of
Mercury.
Specifically, the Commission's complaint alleges that in early 1996,
Vallem learned that Mercury employees falsified a bank statement to
cover up a sham transaction that affected Mercury's reported
commercial paper balance. Despite his knowledge of this and other
wrongdoing, Vallem signed fraudulent quarterly filings in May, August
and October of 1996.
The Honorable James B. Zagel of the United States District Court for
the Northern District of Illinois entered the Order enjoining Vallem
from further violations of Sections 17(a)(1) and (a)(3) of the
Securities Act of 1933 and Section 10(b) of the Securities Exchange
Act of 1934, and Rule 10b-5 thereunder. The Order against Vallem also
imposed a civil penalty of $50,000.
_________________________________________________________________
Modified 06/26/2002
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