U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19179 /April 11, 2005
Securities and Exchange Commission v. Thomas J. Casey, Dan J. Cohrs, and Joseph P. Perrone, Civil Action No. CV 05-2605 ABC (RCx) (C.D. Cal.)
THREE FORMER OFFICERS OF GLOBAL CROSSING LTD. CONSENT TO PAY CIVIL PENALTIES
On April 11, 2005, the Securities and Exchange Commission filed a settled action for civil penalties in the United States District Court for the Central District of California against Global Crossing Ltd.'s former chief executive officer, Thomas J. Casey, its former chief financial officer, Dan J. Cohrs, and its former executive vice president of finance, Joseph P. Perrone. The Commission's complaint alleges that Casey, Cohrs, and Perrone aided and abetted Global Crossing's violations of the reporting provisions of the Securities Exchange Act of 1934. The complaint alleges that, in the Management's Discussion and Analysis portion (commonly called "MD&A") of Global Crossing's Forms 10-Q for the first and second quarters of 2001, Global Crossing failed to adequately disclose material information regarding certain transactions that it entered into in the first half of 2001.
Casey, Cohrs, and Perrone, without admitting or denying the allegations in the complaint, consented to entry of a judgment ordering each to pay a $100,000 civil penalty. The Commission brought this action in conjunction with a settled cease-and-desist proceeding. In that proceeding, Global Crossing and Casey, Cohrs, and Perrone agreed to the entry of a cease-and-desist order that finds that Global Crossing violated the reporting provisions of Section 13(a) of the Securities Exchange Act of 1934 and Rules 12b-20 and 13a-13 thereunder, and that Casey, Cohrs, and Perrone were a cause of those violations. See In re Global Crossing Ltd. et al., Exchange Act Release No. 51517 (April 11, 2005).
