UNITED STATES OF AMERICA Before the SECURITIES AND EXCHANGE COMMISSION SECURITIES EXCHANGE ACT OF 1934 Release No. 39801 / March 25, 1998 ACCOUNTING AND AUDITING ENFORCEMENT Release No. 1021 / March 25, 1998 ADMINISTRATIVE PROCEEDING File No. 3-9568 ______________________________ : In the Matter of :ORDER INSTITUTING PUBLIC :ADMINISTRATIVE PROCEEDING Peter F. Kuebler, CPA :AND TEMPORARY SUSPENSION :PURSUANT TO RULE 102(e)(3) OF THE Respondent. :COMMISSION'S RULES OF PRACTICE ______________________________: I. The Securities and Exchange Commission (the "Commission") deems it appropriate and in the public interest that a public administrative proceeding be instituted pursuant to 102(e)(3)[1] of the Commission's Rules of Practice against Peter F. Kuebler ("Kuebler"), an inactive California CPA. II. The Commission makes the following findings: A.Kuebler, age 42, was Vice President, Secretary and Chief Financial Officer of Wilshire Technologies, Inc. ("Wilshire") from November 1992 through March 1994. B.During fiscal years 1993 and 1994, Wilshire developed, manufactured and marketed medical, clean room and transdermal drug delivery products. During fiscal 1993, Wilshire introduced two new products, a transdermal appetite suppressant called "TrimPatch" and a clean room product known as the pipe plug. Wilshire's common stock is registered with the Commission pursuant to Section 12(g) of the Securities Exchange Act of 1934 ("Exchange Act").[2] C.On or about November 1, 1996, the Commission filed a first amended complaint against Kuebler and Michael W. Crow in SEC v. Michael W. Crow and Peter F. Kuebler, Civil Action No. 96-1661 S (CGA) (the "Amended Complaint"). D.The Amended Complaint alleges, among other things, that from at least July 1993 through January 1994, Wilshire inflated its earnings in press releases and in periodic reports with the Commission. The Amended Complaint further alleges that, contrary to Generally Accepted Accounting Principles, Wilshire inflated its earnings by improperly recognizing conditional sales, the sale of an asset to a related party, and a disputed claim against a supplier. The Amended Complaint further alleges that Kuebler knew, or was reckless in not knowing, that Wilshire's financial statements were materially false and misleading and that Kuebler falsified, or caused to be falsified, accounting entries to Wilshire's books and records. In addition, the Amended Complaint alleges that Kuebler omitted to state material facts to Wilshire's auditors in connection with the fiscal year 1993 audit of Wilshire's financial statements. E.On February 25, 1998, the United States District Court for the Southern District of California entered a Judgment of Permanent Injunction and Other Relief Against Defendant Peter F. Kuebler ("Judgment"), which permanently enjoins Kuebler from violating Sections 10(b), 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20, 13a-13, 13b2-1 and 13b2-2 thereunder. Kuebler consented to the Judgment without admitting or denying the allegations in the Amended Complaint, except as to subject matter jurisdiction, which he admitted. III. Based on the foregoing, the Commission finds that Kuebler has been enjoined within the meaning of Rule 102(e)(3) of the Commission's Rules of Practice. In view of this finding, the Commission deems it necessary and appropriate and in the public interest that Kuebler be temporarily suspended from appearing or practicing before the Commission. IT IS HEREBY ORDERED that Kuebler is temporarily suspended from appearing or practicing before the Commission as an accountant for a period of 30 days commencing immediately upon receipt of service of this Order personally or by certified mail at his last known address. IT IS FURTHER ORDERED that Kuebler may, within thirty (30) days after service of this Order, petition the Commission to lift the temporary suspension. If no petition is received by the Commission within thirty (30) days after service of this Order, the suspension shall become permanent pursuant to Rule 102(e)(3)(ii). If a petition is received within thirty (30) days after service of this Order, the Commission shall either lift the temporary suspension, or set the matter down for hearing at a time and place designated by the Commission, or both, and, after opportunity for hearing, may censure the petitioner, or disqualify the petitioner from appearing or practicing before the Commission for a period of time or permanently, pursuant to Rule 102(e)(3)(iii). This Order shall be served upon Kuebler personally or by certified mail at his last known address. By the Commission. Jonathan G. Katz Secretary **FOOTNOTES** [1]:Rule 102(e)(3)(i)(A) provides, in pertinent part, that "the Commission, with due regard to the public interest and without preliminary hearing, may, by order, temporarily suspend from appearing or practicing before it any...accountant...who has been by name: Permanently enjoined by any court of competent jurisdiction, by reason of his or her misconduct in an action brought by the Commission, from violating or aiding and abetting the violation of any provision of the Federal securities laws or of the rules and regulations thereunder." [2]:The Commission previously ordered Wilshire to cease and desist from committing or causing any violations and any future violations of Sections 10(b), 13(a) 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20, and 13a-13 thereunder. In the Matter of Wilshire Technologies, Inc., Exchange Act Rel. No. 37719 (Sept. 24, 1996).