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U.S. Securities and Exchange Commission

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 17100 / August 13, 2001

Accounting and Auditing Enforcement Release No. 1433 / August 13, 2001

SEC V. RICHARD I. BERGER AND DONNA M. RICHARDSON, Civil Action No. 00-10351 WJR (Mcx) (C.D. Cal.)

The Securities and Exchange Commission ("Commission") announced that on August 7, 2001, the Honorable William J. Rea, United States District Judge for the Central District of California, entered a judgment of permanent injunction against Donna M. Richardson ("Richardson"), the former Chief Financial Officer of Craig Consumer Electronics, Inc. ("Craig"), a former marketer of consumer electronic products located in Los Angeles County, California.

The Commission filed its complaint on September 27, 2000 in which it alleged that Richardson, a resident of Dracut, Massachusetts, misstated and omitted material facts regarding Craig's precarious financial condition in an initial public offering and in periodic financial reports filed in 1996 and 1997. Craig's voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code was dismissed in August 1998.

Without admitting or denying the allegations contained in the complaint, Richardson consented to a permanent injunction against future violations of the antifraud provisions (Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder), the reporting provision (Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder), record-keeping provision (Section 13(b)(2)(A) of the Exchange Act), internal controls provision (Section 13(b)(2)(B) of the Exchange Act), books and records provision (Rule 13b2-1 of the Exchange Act), knowing circumvention of internal controls provisions (Section 13(b)(5) of the Exchange Act) and lying to an accountant provision (Rule 13b2-2 of the Exchange Act).


http://www.sec.gov/litigation/litreleases/lr17100.htm

Modified: 08/25/2001