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SEC LITIGATION RELEASE
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EXTRACTED KEY WORDS
AMS SECURITIES COURT DISTRICT EXCHANGE EXCHANGE ACT VIOLATING CONTROL AMERICAN MOBILE SYSTEMS JUDGEMENT STATES DISTRICT COURT UNITED STATES MATTER THEREUNDER ENTRY PERIODIC REPORTS FUNDS ARRANGEMENT ACCOUNTING COLUMBIA WILLIAM SEA CEASE SECURITIES LAWS INTERNAL CONTROL PROVISIONS THEREIN DENYING ADMITTING RELATED MATTER |
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
SECURITIES AND EXCHANGE COMMISSION v. WILLIAM J. YOUNG, United
States District Court for the District of Columbia, Civil Action
No. 1: 95CV01336 (GK).
Litigation Release No. 14771 / January 3, 1996
Accounting and Auditing Enforcement
Release No. 747 / January 3, 1996
On December 12, 1995, the United States District Court for
the District of Columbia entered a Final Judgment of Permanent
Injunction and Other Equitable Relief against William J. Young,
the former president of American Mobile Systems, Inc.
The Court's Final Judgment was based on Young's default. In
its complaint, the Commission alleged that between July 1988 and
March 1992, Young arranged for AMS to advance substantial funds
to various nonpublic entities under his control and ultimately
used this arrangement to misappropriate company funds. The
Commission further alleged that Young was responsible for
material misrepresentations and omissions concerning AMS's
transactions with the entities in periodic reports. Moreover,
the Commission alleged that Young made false statements to AMS's
auditors in connection with audits of AMS's financial statements,
and that Young failed to implement a sufficient system of
internal accounting controls at AMS.
Based on Young's default and the SEC's Application for Entry
of Final Judgment, the Court enjoined Young from violating
Section 17(a) of the Securities Act of 1933 and Sections 10(b)
and 13(b)(5) of the Securities Exchange Act of 1934 and Rules
10b-5 and 13b2-2 thereunder. Further, the Court barred Young
from acting as an officer or director of any public company, and
ordered Young to disgorge $2,825,961.03, the amount by which he
was unjustly enriched by his illegal conduct, plus prejudgment
interest.
In a related matter, AMS consented to the entry of an Order
of the Commission, without admitting or denying the matters set
forth therein, finding that AMS violated periodic reporting and
internal control provisions of the securities laws. The
Commission ordered AMS to cease and desist from violating
Sections 13(a) and 13(b)(2)(B) of the Exchange Act and Rules 12b-
20, 13a-1 and 13a-13 thereunder. (In the Matter of American
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