U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No.17566 / June 17, 2002
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 ALAN T. DAVIS
The Securities and Exchange Commission ("Commission") announced today
that on May 24, 2002, 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 Alan T. Davis
("Davis") of Seymour, Tennessee for engaging in violations of the
antifraud and accounting control provisions of the securities laws
during his tenure as an outside auditor of Vista 2000, Inc. ("Vista"),
a now defunct consumer products company formerly headquartered in
Roswell, Georgia. Judge Cooper's order permanently enjoined Davis 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(b)(5) of the Exchange Act and
Rule 13b2-1 thereunder, and Section 14(e) of the Exchange Act and Rule
14e-3 thereunder. Davis was ordered to pay disgorgement in the amount
of $255,627 and pre-judgment interest thereon in the amount of
$159,680. The order against Davis was entered pursuant to a default
judgment, in which the facts of the Commission's complaint were deemed
to be true against Davis.
The Securities and Exchange Commission previously sued Davis and three
other men for various violations of the federal securities law. The
other defendants are Arnold E. Johns, Jr. of Atlanta, Georgia, Michael
J. Becker of Marietta, Georgia and Richard P. Smyth of Fernandina
Beach, Florida. Johns, Smyth and Becker are former officers of Vista.
Johns was a director of Vista and its president, and Smyth was Vista's
founder and chief executive officer. Becker was Vista's vice president
of finance. The litigation is continuing as to Johns. Smyth and Becker
were previously enjoined by separate orders of the court.
The Commission's complaint alleged a wide-range of securities law
violations, including that misstatements were made by Vista in filings
with the Commission. The allegations against Davis included that he
audited Vista's 1994 financial statements at a time when he owned
23,333 shares of Vista common stock, and as its outside auditor
assisted Vista in preparing its reports on Form 10-QSB until November
1995. In addition, Davis engaged in illegal insider trading in Vista
stock and in the stock of a company acquired by Vista, and violated
generally accepted auditing standards while conducting his audit of
SNIPPETS:
U.S. SECURITIES AND EXCHANGE COMMISSION
SEC OBTAINS PERMANENT INJUNCTION AGAINST ALAN T. DAVIS
The Securities and Exchange Commission announced today that on May 24, 2002, the Honorable
headquartered in Roswell, Georgia.
Judge Cooper's order permanently enjoined Davis from further violations of Section 17of the
Davis was ordered to pay disgorgement in the amount of $255,627 and pre-judgment interest
The order against Davis was entered pursuant to a default judgment, in which the facts of the
The other defendants are Arnold E. Johns,
of Atlanta, Georgia, Michael J. Becker of Marietta, Georgia and Richard P. Smyth of
Smyth and Becker are former officers of Vista.
Johns was a director of Vista and its president, and Smyth was Vista's founder and chief
Becker was Vista's vice president of finance.
The litigation is continuing as to Johns.
Smyth and Becker were previously enjoined by separate orders of the court.
The Commission's complaint alleged a wide-range of securities law violations, including that
The allegations against Davis included that he audited Vista's 1994 financial statements at a
In addition, Davis engaged in illegal insider trading in Vista stock and in the stock of a
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