UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18723 / May 24, 2004
Accounting and Auditing Enforcement Release No. 2021 / May 24, 2004
SEC SUES OCUMED GROUP, INC. AND ITS OFFICERS AND DIRECTORS FOR FRAUD
Securities and Exchange Commission v. Ocumed Group, Inc., Alfred R. Caggia and Louise A. Cummings (United States District Court for the District of Columbia C.A. No. 1:04CV00829)
The Securities and Exchange Commission announced today that it filed a complaint in the U.S. District Court for the District of Columbia against Ocumed Group, Inc. ("Ocumed"), a Delaware corporation with its principal office in Roseland, New Jersey, and two of the company's officers and directors - Alfred Caggia and Louise Cummings - for violating the antifraud provisions of the federal securities laws by including a forged auditor's report in Ocumed's 2002 10-KSB filing with the Commission. The Commission also charges that Caggia violated the recordkeeping, ownership and disclosure, and certification requirements of the federal securities laws.
According to the Commission's Complaint, in August 2002, Ocumed filed a Form 10-KSB for the fiscal year ended April 30, 2002 that contained what purported to be an auditor report issued by an independent auditor. The Complaint alleges that the auditor report was a forgery fabricated to make it appear as if Ocumed's 2002 financial statements were audited when, in fact, no audit ever occurred.
The Complaint alleges Caggia and Ocumed's now deceased CFO created the forged auditor report and, with Caggia's knowledge, included the forged report in Ocumed's 10-KSB. Caggia and Cummings signed the 10-KSB. The complaint further alleges that Cummings failed to read or take any steps to ascertain whether the filing was true and accurate. The Complaint further alleges that Caggia failed to file with the Commission required ownership and disclosure statements identifying his control of a substantial percentage of the outstanding Ocumed shares and his transfer of several shares to other individuals or entities. According to the Complaint, Caggia also failed to file certifications of accuracy and completeness required by Sarbanes-Oxley Rule 13a-14 with Ocumed's 10-QSBs for the quarters ended July 31, 2002, October 31, 2002, and January 31, 2003.
The Complaint seeks an injunction against Ocumed based on its violations of Sections 10(b) and 13(a) of the Exchange Act and Exchange Act Rules 10b-5, 12b-20, and 13a-1. It seeks an injunction, officer and director bar, civil monetary penalty, and order of disgorgement against Caggia based on his violations of Exchange Act Sections 10(b), 13(b)(5), 13(d), and 16(a) and Exchange Act Rules 10b-5, 13a-14, 13d-1, 13d-2, and 16a-3, and his aiding and abetting violations of Exchange Act Section 13(a) and Exchange Act Rules 12b-20 and 13a-1. Lastly, the Complaint seeks an injunction, officer and director bar, and civil penalty against Cummings based on her violations of Exchange Act Section 10(b) and Exchange Act Rule 10b-5, and her aiding and abetting violations of Exchange Act Section 13(a) and Exchange Act Rules 12b-20 and 13a-1.