SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 16968 / April 18, 2001
Accounting and Auditing Enforcement Release No. 1384 / April 18, 2001
SEC SETTLES CASE AGAINST FORMER EXECUTIVES OF BANKERS TRUST CO.
Securities and Exhange Commission v. Bruce J. Kingdon, Kenneth Goglia, and Harvey Plante, Civil Action No. 99-CIV-5720 (S.D.N.Y.) (Filed July 19, 1999)
The Securities and Exchange Commission today announced that it dismissed civil injunctive proceedings previously filed against Bruce J. Kingdon, Kenneth Goglia, and Harvey Plante, all former executives of Bankers Trust Company. The Commission further announced that Kingdon, Goglia and Plante have agreed to consent to the entry of a cease-and-desist order to settle charges arising out of their participation in the transferring of unclaimed funds to various reserve accounts, expense accounts, and income accounts to an income account.
The Commission found that for at least three years ending in 1996, respondents, while employed in the Client Processing Services unit of Bankers Trust Company, transferred unclaimed funds in the bank's custody to other Bankers Trust accounts. In transferring the unclaimed funds, respondents directly or indirectly falsified the books and records of the Global Institutional Services unit, Bankers Trust, and Bankers Trust's immediate corporate parent, BTNY, thereby violating Exchange Act Rule 13b2-1.
Without admitting or denying the findings in the Commission's order, Kingdon, Goglia and Plante agreed to cease and desist from committing or causing any violations and any future violations of Exchange Act Rule 13b2-1.