SEC v J.P. BOLDUC, BRIAN J. SMITH, C.P.A., et al


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Keywords & Phrases

CaseNo: 34-47416, Defendant: J.P. Bolduc, Brian J. Smith, C.P.A., Richard N. Sukenik, C.P.A., Philip J. Ryan III, Constantine L. Hampers, A. Miles Nogelo, and Robert W. Armstrong III, C.P.A. Release No. AAER 1724, Plaintiff: SEC, UniqueCaseRef: SEC>34-47416, Grace, Bolduc, Health Care, Excess Reserves, Commission, Report, Officer, Nmc, Health Care Group, Exchange Act, Relevant Period, Earnings, Growth Rate, Violation, Financial Statements, Accounting, Chief, Securities Exchange Act, Directors, Respondent, Income, Filings, Misleading, Matter, Findings, Settlement, President, Relevant Time Period, Teleconferences , ContentID: 120255854

Case Documents

2003-02-27

SEC ADMINISTRATIVE PROCEEDING
[ see first page and extracted highlights below ] ItemID: 133144

6 pages
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Total Documents: 1 document , 6 pages

Price: $ 19.95

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1 . SEC ADMINISTRATIVE PROCEEDING

EXTRACTED KEY WORDS

BOLDUC
HEALTH CARE
EXCESS RESERVES
COMMISSION
REPORT
OFFICER
NMC
HEALTH CARE GROUP
EXCHANGE ACT
RELEVANT PERIOD
EARNINGS
GROWTH RATE
VIOLATION
FINANCIAL STATEMENTS
ACCOUNTING
CHIEF
SECURITIES EXCHANGE ACT
DIRECTORS
RESPONDENT
INCOME
FILINGS
MISLEADING
MATTER
FINDINGS
SETTLEMENT
PRESIDENT
MEMBERS
RELEVANT TIME PERIOD
TELECONFERENCES

UNITED STATES OF AMERICA
before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 47416 / February 27, 2003

   ACCOUNTING AND AUDITING ENFORCEMENT
   Release No. 1724 / February 27, 2003

   ADMINISTRATIVE PROCEEDING
   File No. 3-9793
     _________________________________________________________________

   In the Matter of
   J.P. Bolduc, Brian J. Smith, C.P.A., Richard N. Sukenik, C.P.A.,
   Philip J. Ryan III, Constantine L. Hampers, A. Miles Nogelo, and
   Robert W. Armstrong III, C.P.A.,

   Respondents.
     _________________________________________________________________

   ORDER MAKING FINDINGS AND IMPOSING CEASE-AND-DESIST ORDER AGAINST J.
   P. BOLDUC

                                     I.

   The Securities and Exchange Commission ("Commission") deems it
   appropriate to accept the Offer of Settlement ("Offer") submitted by
   J.P. Bolduc ("Bolduc" or "Respondent") pursuant to Rule 240(a) of the
   Rules of Practice of the Commission, 17 C.F.R. § 201.240(a), for the
   purpose of settlement of this public administrative and
   cease-and-desist proceeding instituted by the Commission against him
   on December 22, 1998, pursuant to Section 21C of the Securities
   Exchange Act of 1934 ("Exchange Act").

                                    II.

   Solely for the purpose of these proceedings and any other proceedings
   brought by or on behalf of the Commission or to which the Commission
   is a party, and without admitting or denying any of the findings
   contained herein, except as to the jurisdiction of the Commission over
   him and over the subject matter of these proceedings, which is
   admitted, Bolduc consents to the entry by the Commission of this
   Order.

                                    III.

SNIPPETS:

SECURITIES AND EXCHANGE COMMISSION

ORDER MAKING FINDINGS AND IMPOSING CEASE-AND-DESIST ORDER AGAINST J. P. BOLDUC

The Securities and Exchange Commission deems it appropriate to accept the Offer of Settlement

Solely for the purpose of these proceedings and any other proceedings brought by or on behalf

Respondent Bolduc was the president and chief operating officer of W.R. Grace & Co. from 1990

Bolduc was also a member of Grace's board of directors during at least 1991 through 1995.

Between at least 1991 and 1995, National Medical Care Inc. was Grace's main health care

During the relevant period, NMC comprised the bulk of Grace's Health Care Group, which group

As described in greater detail below, during the fiscal years 1991 through 1995, both while

Grace deferred reporting income by increasing or establishing "excess reserves" that were not

Bolduc, first as the president and chief operating officer of Grace and later as the curately reflected its transactions; and Grace's failure to maintain a system of internal

Thus, rather than report its actual earnings, NMC, at the direction of at least one of

At some point in mid-1991, as the reserves reached a level of between $10 and $20 million,

Grace's chief financial officer, with the knowledge and approval of Bolduc, directed that NMC

Also during the relevant time period, PW performed audits of Grace's consolidated financial

the Health Care Group and Grace income amounts discussed in the teleconferences and reported

Respondent Bolduc cease and desist from committing or causing any violation and any future


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