Acct Week 7 Assignment Essay

980 Words Oct 13th, 2014 4 Pages
Access the "Litigation" section of the SEC's website at www.sec.gov/litigation.shtml. Click on "Accounting and Auditing Enforcement Releases." Click on "AAER-3234" filed January 20, 2011. Read the release and the related SEC Complaint. Summarize the release and complaint in 2-3 pages (12-point, double spaced).

U. S Securities and Exchange Commission
Litigation Release No. 21819/ January 20, 2011
Accounting and Auditing Release No. 3234/ January 20, 2011
Securities and Exchange Commission v. NutraCea et al., United States District of Arizona, Civil Action No. CV 11-0092-PHX-DGC

Summary:

This release explains how NutraCea, a company based out of Phoenix, Arizona that manufactures and sells health food products, was involved in a very
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Former Senior Vice President/Secretary, Margie Adleman who consented to:
1) a permanent order from all future violations of “Sections 10(b) and 13(b)(5) of the Exchange Act, and Rules 10b-5, 13b2-1, and 13b2-2 thereunder, and for aiding and abetting violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act, and Rules 12b-20, 13a-1 and 13a-13 thereunder.”
2) to a 5 year officer and Director Bar

Former Controller, Joanne D. Kline And Former Director of Financial Services, Scott Wilkinson who together consented to:
1) a permanent order from all future violations of “Section 13(b)(5) of the Exchange Act, and Rules 13b2-1 and 13b2-2 thereunder, and for aiding and abetting violations of Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act, and Rules 12b-20, 13a-1, and 13a-13 thereunder.”
2) to pay a civil penalty of $25,000 and
3) to administrative orders preventing both of them from appearing or practicing as an accountant for one year after which they could apply for reinstatement

An actual complaint was brought against Former CFO, Todd C. Crow and is still continuing for: violating aiding and abetting violation of anti-fraud, books and records, financial reporting, internal controls, lying to auditors provisions of federal securities laws and violating the Exchange Act Rule 13a-14 by signing certifications required by Section 302 of the SOX Act that were false and misleading. The

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