U.S. Securities & Exchange Commission
SEC Seal
Home Previous Page
U.S. Securities and Exchange Commission

UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 50135 / August 3, 2004

ACCOUNTING AND AUDITING ENFORCEMENT
Release No. 2071 / August 3, 2004

ADMINISTRATIVE PROCEEDING
File No. 3-9304


In the Matter of

Ronald H. Hoffman, CPA


:
:
:
:
:
:
:
ORDER GRANTING APPLICATION FOR REINSTATEMENT TO APPEAR AND PRACTICE BEFORE THE COMMISSION AS AN ACCOUNTANT RESPONSIBLE FOR THE PREPARATION OR REVIEW OF FINANCIAL STATEMENTS REQUIRED TO BE FILED WITH THE COMMISSION

On April 30, 1997, Ronald H. Hoffman ("Hoffman") was suspended from appearing or practicing as an accountant before the Commission as a result of settled public administrative proceedings instituted by the Commission against Hoffman pursuant to Rule 102(e) of the Commission's Rules of Practice.1 On April 10, 1997, the Commission filed a complaint against Hoffman and others in SEC v. Structural Dynamics Research Corporation, et al., Civil Action No. C-1-97-0352.3. On April 10, 1997, Hoffman consented to the entry of a Final Judgment of Permanent Injunction and Other Equitable Relief ("Final Judgment"), without admitting or denying the allegations in the complaint. On April 16, 1997, the United States District Court for the Southern District of Ohio entered the Final Judgment, which permanently enjoins Hoffman from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5, 13b2-1 and 13b2-2 promulgated thereunder, and orders him to pay disgorgement of $150,000 and a $50,000 civil penalty.

Hoffman served in the capacity of Chief Financial Officer for Structural Dynamics Research Corporation ("SDRC"). From at least 1992 and continuing through the middle of September 1994, the complaint alleges that SDRC inflated revenue and earnings by recognizing both premature and fictitious revenue, and that Hoffman knew or was reckless in not knowing that SDRC improperly recognized revenue based upon purchase orders containing conditional language. The complaint further alleges that Hoffman was aware that material amounts of accounts receivable were written off during 1993 and 1994, and that Hoffman, directly or indirectly, omitted to state certain material information to SDRC's auditors in connection with their 1993 audit. Furthermore, the complaint alleges that Hoffman sold SDRC stock while in possession of material, non-public information about the accuracy of SDRC's financial statements.

This order is issued in response to Hoffman's application for reinstatement to practice before the Commission as an accountant responsible for the preparation or review of financial statements required to be filed with the Commission.

In his capacity as a preparer or reviewer, or as a person responsible for the preparation or review, of financial statements of a public company to be filed with the Commission, Hoffman attests that he will undertake to have his work reviewed by the independent audit committee of any company for which he works, or in some other manner acceptable to the Commission, while practicing before the Commission in this capacity. Hoffman is not, at this time, seeking to appear or practice before the Commission as an independent accountant. If he should wish to resume appearing and practicing before the Commission as an independent accountant, he will be required to submit an application to the Commission showing that he has complied and will comply with the terms of the original suspension order in this regard. Therefore, Hoffman's suspension from practice before the Commission as an independent accountant continues in effect until the Commission determines that a sufficient showing has been made in this regard in accordance with the terms of the original suspension order.

Rule 102(e)(5) of the Commission's Rules of Practice governs applications for reinstatement, and provides that the Commission may reinstate the privilege to appear and practice before the Commission "for good cause shown." This "good cause" determination is necessarily highly fact specific.

On the basis of information supplied, representations made, and undertakings agreed to by Hoffman, it appears that he has complied with the terms of the April 30, 1997 order suspending him from practice before the Commission as an accountant, that no information has come to the attention of the Commission relating to his character, integrity, professional conduct or qualifications to practice before the Commission that would be a basis for adverse action against him pursuant to Rule 102(e) of the Commission's Rules of Practice, and that Hoffman, by undertaking to have his work reviewed by the independent audit committee of any company for which he works, or in some other manner acceptable to the Commission, in his practice before the Commission as a preparer or reviewer of financial statements required to be filed with the Commission, has shown good cause for reinstatement. Therefore, it is accordingly,

ORDERED pursuant to Rule 102(e)(5)(i) of the Commission's Rules of Practice that Ronald H. Hoffman, CPA is hereby reinstated to appear and practice before the Commission as an accountant responsible for the preparation or review of financial statements required to be filed with the Commission.

By the Commission.

Jonathan G. Katz
Secretary

Endnotes

Rule 102(e)(5)(i) provides:

"An application for reinstatement of a person permanently suspended or disqualified under paragraph (e)(1) or (e)(3) of this section may be made at any time, and the applicant may, in the Commission's discretion, be afforded a hearing; however, the suspension or disqualification shall continue unless and until the applicant has been reinstated by the Commission for good cause shown." 17 C.FR 201.102(e)(5)(i).

 

http://www.sec.gov/litigation/admin/34-50135.htm


Modified: 08/03/2004