1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. Securities Act of 1933 Release No. 7528 / April 27, 1998 Securities Exchange Act of 1934 Release No. 39916 / April 27, 1998 Accounting and Auditing Enforcement Release No. 1027 / April 27, 1998 Administrative Proceeding File No. 3-9586 In the Matter of ALBERT GLENN YESNER, CPA On April 27, 1998, the Commission issued an Order instituting administrative proceedings against Albert Glenn Yesner ("Yesner") of Coral Springs, Florida. In the Order, the Division of Enforcement and the Office of the Chief Accountant allege that Yesner, who is a certified public accountant and who was Sensormatic Electronics Corporation's ("Sensormatic") Controller and then Director of Business Controls, violated, and aided and abetted and caused Sensormatic's violations of, various provisions of the federal securities laws, including the antifraud, reporting, internal controls, books and records, and representation-to- auditors provisions, and that he engaged in improper professional conduct. The Order alleges that, from at least July 1993 through July 1995, Sensormatic, a manufacturer and marketer of electronic security systems, improperly recognized revenue in order to manipulate its quarterly revenue and earnings to reach its budgeted earnings goals and thereby meet analysts' quarterly earnings projections. One of the methods Sensormatic used to improperly recognize revenue involved turning back the computer clock that dated and recorded shipments in order to prematurely recognize revenue on shipments made past the end of the quarter. As a result of its improper revenue recognition practices, Sensormatic misstated its quarterly earnings in financial statements contained in periodic reports and registration statements filed with the Commission. In addition, Sensormatic issued a press release that inflated its preliminary estimates of earnings relating to fiscal year 1995. The Order alleges, among other things, that Yesner participated in Sensormatic's improper revenue recognition because, although he was aware that shipping documents were backdated to prematurely and improperly record shipments and revenue and knew that recognizing revenue on post-period shipments was not in conformity with generally accepted accounting principles or the company's stated revenue recognition policy, he failed to inform the Audit Committee of Sensormatic's Board of Directors or the independent auditors about these and other practices. The Order also alleges that, during the audit for fiscal year 1994, Yesner learned that a Sensormatic employee had been instructed to withhold from the auditors documents that would have disclosed the improper recognition of revenue on out-of- period shipments, and that Yesner told the employee that his choices were essentially to follow orders or quit. Based on the foregoing, the Order alleges that Yesner willfully violated Exchange Act Rules 13b2-1 and 13b2-2; caused and willfully aided and abetted Sensormatic's violations of Section 13(b)(2)(A) and (B) of the Exchange Act; and caused Sensormatic's violations of Section 17(a) of the Securities Act, Sections 10(b) and 13(a) of the Exchange Act, and Rules 10b-5, 12b-20, 13a-1, and 13a-13 thereunder. A hearing will be held to determine whether the staff allegations are true, to afford Yesner an opportunity to establish any defenses, and to determine whether the Commission should issue a cease and desist order against Yesner and what, if any, remedial action against Yesner is appropriate pursuant to Rule 102(e) of the Commission's Rules of Practice. 1