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U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No.17566 / June 17, 2002

SECURITIES AND EXCHANGE COMMISSION V. RICHARD P. SMYTH, ARNOLD E. JOHNS, JR., MICHAEL J. BECKER AND ALAN T. DAVIS, Civil Action No. 1:01-CV-1344 (N.D. Ga.)

SEC OBTAINS PERMANENT INJUNCTION AGAINST ALAN T. DAVIS

The Securities and Exchange Commission ("Commission") announced today that on May 24, 2002, the Honorable Clarence Cooper of the United States District Court for the Northern District of Georgia entered an order of permanent injunction and other relief against Alan T. Davis ("Davis") of Seymour, Tennessee for engaging in violations of the antifraud and accounting control provisions of the securities laws during his tenure as an outside auditor of Vista 2000, Inc. ("Vista"), a now defunct consumer products company formerly headquartered in Roswell, Georgia. Judge Cooper's order permanently enjoined Davis from further violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, Section 13(b)(5) of the Exchange Act and Rule 13b2-1 thereunder, and Section 14(e) of the Exchange Act and Rule 14e-3 thereunder. Davis was ordered to pay disgorgement in the amount of $255,627 and pre-judgment interest thereon in the amount of $159,680. The order against Davis was entered pursuant to a default judgment, in which the facts of the Commission's complaint were deemed to be true against Davis.

The Securities and Exchange Commission previously sued Davis and three other men for various violations of the federal securities law. The other defendants are Arnold E. Johns, Jr. of Atlanta, Georgia, Michael J. Becker of Marietta, Georgia and Richard P. Smyth of Fernandina Beach, Florida. Johns, Smyth and Becker are former officers of Vista. Johns was a director of Vista and its president, and Smyth was Vista's founder and chief executive officer. Becker was Vista's vice president of finance. The litigation is continuing as to Johns. Smyth and Becker were previously enjoined by separate orders of the court.

The Commission's complaint alleged a wide-range of securities law violations, including that misstatements were made by Vista in filings with the Commission. The allegations against Davis included that he audited Vista's 1994 financial statements at a time when he owned 23,333 shares of Vista common stock, and as its outside auditor assisted Vista in preparing its reports on Form 10-QSB until November 1995. In addition, Davis engaged in illegal insider trading in Vista stock and in the stock of a company acquired by Vista, and violated generally accepted auditing standards while conducting his audit of Vista.

See also: L.R. 17211 (October 30, 2001); L.R. 17175 (October 5, 2001); L.R. 17044 (June 21, 2001)


http://www.sec.gov/litigation/litreleases/lr17566.htm

Modified: 06/17/2002