UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
SECURITIES EXCHANGE ACT OF 1934
Release No. 47340 / February 10, 2003
ACCOUNTING AND AUDITING ENFORCEMENT
Release No. 1713 / February 10, 2003
ADMINISTRATIVE PROCEEDING
File No. 11039
_________________________________________________________________
In the Matter of
Richard C. Tyrer,
Respondent.
_________________________________________________________________
ORDER INSTITUTING PUBLIC CEASE-AND-DESIST PROCEEDINGS, MAKING
FINDINGS, AND IMPOSING A CEASE-AND-DESIST ORDER PURSUANT TO SECTION
21C OF THE SECURITIES EXCHANGE ACT OF 1934
I.
The Securities and Exchange Commission ("Commission") deems it
appropriate that public cease-and-desist proceedings be, and hereby
are, instituted pursuant to Section 21C of the Securities Exchange Act
of 1934 ("Exchange Act") against Richard C. Tyrer ("Tyrer" or
"Respondent").
II.
In anticipation of the institution of these proceedings, Respondent
has submitted an Offer of Settlement ("Offer"), which the Commission
has determined to accept. Solely for the purpose of these proceedings
and any other proceedings brought by or on behalf of the Commission,
or in which the Commission is a party, and without admitting or
denying the findings herein, except that the Respondent admits the
Commission's jurisdiction over him and the subject matter of the
proceedings, Respondent consents to the entry of this Order
Instituting Public Cease-and-Desist Proceedings, Making Findings, and
Imposing a Cease-and-Desist Order Pursuant to Section 21C of the
Securities Exchange Act of 1934 ("Order").
III.
SNIPPETS:
SECURITIES AND EXCHANGE COMMISSION
ORDER INSTITUTING PUBLIC CEASE-AND-DESIST PROCEEDINGS, MAKING FINDINGS, AND IMPOSING A
The Securities and Exchange Commission deems it appropriate that public cease-and-desist
In anticipation of the institution of these proceedings, Respondent has submitted an Offer of
Solely for the purpose of these proceedings and any other proceedings brought by or on behalf
21C of the Securities Exchange Act of 1934.
Respondent Tyrer was the Vice President, Western Region Sales for The North Face, Inc..
In the third quarter of 1998, The North Face arranged a $9.3 million consignment sale to a
Prior to the third quarter of 1998, the Texas customer had not placed an order with The North
The true terms of the third quarter sale were not disclosed and the sale was improperly
Tyrer, with the express authority of his superior, an officer of the company, offered that
The North Face selected a third-party warehouse near the Texas customer to store the goods,
The Texas customer never sent or signed a purchase order for the sale-indeed he was not aware
During the audit of The North Face's 1998 financial statement in early 1999, its independent
The North Face's audit committee conducted an investigation and was assisted by an accounting
Tyrer assisted his superior in concealing the real terms of the sale to the Texas customer
As part of the internal investigation it was conducting, the audit committee investigators
The purpose of the call was to learn more about the third quarter 1998 transaction to
During the conference call, the Texas customer made these misrepresentations, thereby
Before doing so, however, the Texas customer signed a confirmation letter from The North
The California customer successfully had sold The North Face product for years, but
The North Face's independent auditors, in connection with their audit of the 1998 year-end
Tyrer, following the directions of his superior, asked the California customer to sign the
As a result of the conduct described above, Tyrer violated Sections 10and 13of the Exchange
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