U.S. Securities & Exchange Commission
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U.S. Securities and Exchange Commission

Before the

Release No. 45587 / March 18, 2002

Release No. 1523 / March 18, 2002

File No. 3-10726

In the Matter of






The Securities and Exchange Commission (the "Commission") deems it appropriate and in the public interest to institute public administrative proceedings against David Held ("Held"), a certified public accountant, pursuant to Rule 102(e)(3) of the Commission's Rules of Practice. Accordingly, IT IS HEREBY ORDERED that said proceedings be, and hereby are, instituted.


In anticipation of the institution of these proceedings, Held has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept. Solely for the purposes 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 contained herein (except that Held admits the jurisdiction of the Commission over him and over the subject matter of these proceedings and that a final judgment of permanent injunction has been entered against him) Held consents to the entry of this Order Instituting Proceedings Pursuant to Rule 102(e) of the Commission's Rules of Practice, Making Findings and Imposing Remedial Sanctions ("Order").


On the basis of this Order and Held's Offer, the Commission finds that:

A. Held, 39, a certified public accountant who is duly licensed by the Texas Board of Accountancy, is a defendant in Securities and Exchange Commission v. Timothy Heyerdahl, et. al., Civ. No. C-01-3651 MMC, in the United States District Court for the Northern District of California. During the period from November 1998 through January 12, 1999, Held was Chief Financial Officer for HBO & Co. ("HBOC" or the "Company") and from January 12, 1999 until June 1999 was the Chief Financial Officer of the Information Technology Business ("ITB") unit of McKesson HBOC Inc. ("McKesson HBOC"). Held resides in Georgia.

B. On October 2, 2001, in the above-referenced matter, the United States District Court for the Northern District of California: (a) permanently enjoined Held from future violations of Sections 10(b), 13(b)(2)(A), and 13(b)(5) of the Securities Exchange Act of 1934 ("Exchange Act"), and Rules 10b-5 and 13b2-1 thereunder; and (b) ordered Held to pay a total of $15,000 in civil monetary penalties. Held consented, without admitting or denying the allegations contained in the Commission's complaint (except as to jurisdiction, which he admitted), to the issuance of the order of permanent injunction and the entry of final judgment thereon.

C. The Commission's complaint in the above action alleged a broad range of improper and illegal accounting practices by a number of HBOC and McKesson HBOC officials. As to Held, the complaint alleged that Held fraudulently allowed McKesson HBOC to recognize revenue on a $20 million transaction that was entered into on April 5, 1999 but backdated to March 31, 1999 so it would fall within McKesson HBOC's quarter end. The sale of software was negotiated and documented by HBOC's President and other high-level employees. While Held was not directly involved in the negotiation or documentation of the transaction, he knew that the transaction had been backdated and he approved recognition of revenue on the transaction for the March 31 quarter in the books and records of McKesson HBOC's ITB division. The recognition of revenue on this fraudulent transaction caused McKesson HBOC to materially overstate its software revenue for the quarter ended March 1999.


Based on the foregoing, the Commission deems it appropriate and in the public interest to impose the sanction consented to by Held in his Offer.

Accordingly, IT IS HEREBY ORDERED that, effective immediately:

  1. Held is suspended from the privilege of appearing or practicing before the Commission as an accountant pursuant to SEC Rule of Practice 102(e)(3)(i)(A) [17 C.F.R. Section 201.102(e)].

  2. After three years from the date of this order, Held may request that the Commission consider his reinstatement by submitting an application (attention: Office of the Chief Accountant) to resume appearing or practicing before the Commission as:

    1. a preparer or reviewer, or a person responsible for the preparation or review, of any public company's financial statements that are filed with the Commission. Such an application must satisfy the Commission that Held's work in his practice before the Commission will be reviewed either by the independent audit committee of the public company for which he works or in some other acceptable manner, as long as he practices before the Commission in this capacity; and/or

    2. an independent accountant. Such an application must satisfy the Commission that:

      1. Held, or the firm with which he is associated, is a member of the SEC Practice Section of the American Institute of Certified Public Accountants Division for CPA Firms ("SEC Practice Section");

      2. Held, or the firm, has received an unqualified report relating to his, or the firm's, most recent peer review conducted in accordance with the guidelines adopted by the SEC Practice Section; and

      3. As long as Held appears or practices before the Commission as an independent accountant he will remain either a member of the SEC Practice Section or associated with a member firm of the SEC Practice Section, and will comply with all applicable SEC Practice Section requirements, including all requirements for periodic peer reviews, concurring partner reviews, and continuing professional education.

  3. The Commission's review of an application by Held to resume appearing or practicing before the Commission may include consideration of, in addition to the matters referenced above, any other matters relating to Held's character, integrity, professional conduct, or qualifications to appear or practice before the Commission.

By the Commission.

Jonathan G. Katz


Modified: 03/19/2002