Alan C. Goldsworthy and Walter T. Hilger

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 20808 / November 14, 2008

Accounting and Auditing Enforcement Release No. 2900 / November 14, 2008

Securities and Exchange Commission v. Alan C. Goldsworthy and Walter T. Hilger, Civil Action No. 06-CV-10012-JGD (D. Mass.)

FINAL JUDGMENT ENTERED AGAINST FORMER CFO OF MASSACHUSETTS COMPANY

The Securities and Exchange Commission announced today that on November 13, 2008, the U.S. District Court for the District of Massachusetts entered judgment against Walter T. Hilger, former Chief Financial Officer of Applix, Inc., a Westborough, Massachusetts software company. The court found Hilger liable for violating section 17(a)(3) of the Securities Act of 1933, which prohibits fraudulent practices, and for falsifying Applix's books and records in violation of Rule 13b2-1 promulgated under the Securities Exchange Act of 1934. The court adjudged Hilger and his co-defendant Alan C. Goldsworthy, Applix's former Chief Executive Officer, not liable on the other claims asserted against them by the Commission. The court's judgment was based in part on the findings made by a jury after a four-week trial before Magistrate Judge Judith G. Dein which ended on February 15, 2008. For his violations, Hilger was ordered to pay a civil money penalty of $5000.

The Commission's complaint, filed on January 4, 2006, had alleged that Goldsworthy, Hilger, and Mark Sullivan, another Applix employee, had inflated revenue at the company in 2001-2002. The court had entered a final judgment by consent against Sullivan on January 9, 2008, enjoining him from future violations of the securities laws and ordering him to pay a $25,000 civil money penalty. Separate settled administrative proceedings concerning the same conduct had been brought by the Commission against Applix on January 4, 2006.

For further information see Litigation Release No. 19521 (January 4, 2006); Securities Act Release No. 8651 and Exchange Act Release No. 53049 (January 4, 2006); Exchange Act Release No. 57165 and Accounting and Auditing Enforcement Release No. 2768 (January 17, 2008); and Litigation Release No. 20473 and Accounting and Auditing Enforcement Release No. 2793 (March 3, 2008).