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U.S. Securities and Exchange Commission

SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 16226 / July 30, 1999
ACCOUNTING AND AUDITING ENFORCEMENT RELEASE NO. 1146 / July 30, 1999

SECURITIES AND EXCHANGE COMMISSION v. EXCAL ENTERPRISES, INC., ET AL., Civil Action No. 95-1583-CIV-T-23B (M.D.Fla.)

On July 21, 1999 the U.S. District Court for the Middle District of Florida entered a final judgment against Richard I. Brewer, one of the defendants in the Commission's financial fraud case against Excal Enterprises, Inc., formerly known as Assix International. The Commission's amended complaint alleged that Brewer violated Sections 10(b) of the Securities Exchange Act of 1934, and Rules 10b-5, 13b2-1 and 13b2-2 thereunder, by falsifying Excal's books and records by preparing and recording sham monthly invoices for Western Auto (an Excal customer) for February, March and April, 1991, and falsely recording the January 1991 advance payment of $125,000 from Western Auto as revenue. This conduct allegedly concealed Excal's loss of revenue from a major contract with Western Auto, which was terminated as of December 1990. Without admitting or denying the Commission's allegations, Brewer consented to entry of a final judgment that permanently enjoins him from violating these provisions of the federal securities laws. Based on his demonstrated inability to pay, no civil monetary penalty was imposed against Brewer.

The litigation is proceeding against remaining defendants R. Park Newton III (Excal's Chairman), Frederic Schadt and Excal.

In a related matter, the Commission on July 30, 1999 issued an administrative order pursuant to Rule 102(e) barring Richard Brewer from practiciig before the Commission. The Commission's order, to which Brewer consented, was based on entry of the court's injunction against him. [34-41676]

http://www.sec.gov/litigation/litreleases/lr16226.htm

Modified:07/30/1999