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P>UNITED STATES SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 16409 / January 14, 2000

ACCOUNTING AND AUDITING ENFORCEMENT
RELEASE NO. 1216 / January 14, 2000

Securities and Exchange Commission v. Lynne K. Mercer, Civil Action No. 1:99 CV 00029S (USDC D. Utah)

The Commission announced that on January 5, 2000, Lynne K. Mercer, a Bountiful, Utah, accountant, was permanently enjoined and ordered to pay disgorgement and civil penalties. The Commission's action charged Mercer with forging the signature of his former partner on audit opinions for the financial statements of three publicly-held companies: Computerized Thermal Imaging, Inc., Son-Tech, Inc., and Technology Selection, Inc. In issuing these audit opinions Mercer signed the name of Ted H. Pierce & Associates, an American Fork, Utah, accounting firm, without the firm's knowledge or authorization. The State of Utah revoked Mercer's license as a certified public accountant in 1992. The permanent injunction prohibits Mercer from committing future violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Mercer was also ordered to disgorge $5,855, representing the fees he received from the wrongful audits, and a penalty of $5,855. Mercer consented to the injunction and monetary remedies without admitting or denying the Commission's allegations.

http://www.sec.gov/litigation/litreleases/lr16409.htm

Modified:01/18/2000