U.S. Securities and Exchange Commission

SEC Files Financial Fraud Action in Coordination with Australian Authorities

Litigation Release No. 18382 / October 1, 2003

Accounting and Auditing Enforcement Release No. 1883 / October 1, 2003

Securities and Exchange Commission v. Greg Waring and Craig Treloar, United
States District Court for the Northern District of Ohio, Civil Action No. 1
03 CV 2030

   The Securities and Exchange Commission announced the filing of a civil
   complaint against two Australian citizens who were senior officers of
   the Australian subsidiary of CorrPro Companies, Inc. (CorrPro), a U.S.
   public corporation based in Medina, Ohio. The Commission's complaint
   alleges that from at least October 2000 through February 2002, Greg
   Waring, the former managing director and Craig Treloar, the former
   financial accountant of the subsidiary, CorrPro Companies Australia
   Pty., Ltd. (CorrPro Australia), falsified the accounting records of
   the subsidiary, CorrPro Australia, in order to inflate its net income
   and its net assets. The complaint seeks injunctive relief against
   Waring and Treloar as well as the imposition of an officer and
   director bar.

   The complaint alleges that Waring and Treloar falsified CorrPro
   Australia's financial records so that CorrPro Australia would meet
   financial performance targets set by managers at the parent company.
   The complaint alleges that as a result, CorrPro misstated its
   financial statements after incorporating the false numbers from
   CorrPro Australia.

   The complaint alleges that beginning in at least October 2000, Waring,
   and Treloar at Waring's direction, began entering journal entries to
   CorrPro Australia's general ledger that increased profit and net
   assets. The complaint also alleges that Waring and Treloar falsified
   invoices and credit notes, and made false entries to subledgers
   including accounts payable, accounts receivable, costs of goods sold
   and inventory, and falsified reporting packages sent to CorrPro. The
   complaint further alleges that Treloar and Waring recorded fictitious
   invoices in CorrPro's computerized accounting records and later
   printed physical copies of the false invoices. In addition, the
   complaint alleges that they falsified credit notes from suppliers, and
   accordingly, the accounts payable ledger, to make it look like CorrPro
   Australia owed less money than it did.

   The complaint goes on to allege that Waring and Treloar took steps to
   fabricate documents to be reviewed by the company's independent