U.S. Securities and Exchange Commission
Litigation Release No. 19385 / September 21, 2005
Accounting and Auditing Enforcement Release No. 2315 / September 21, 2005
Securities and Exchange Commission v. Vincent Steckler, Civil Action No. C-03-0467-JW (N.D. Cal.)
Court Enters Final Judgment Against Former Sales Executive of Customer of Legato Systems, Inc.
On September 16, 2005, the Honorable James Ware, United States District Judge for the Northern District of California, entered the Final Judgment Imposing Civil Penalty against Vincent Steckler (“Final Judgment”), based upon his consent entered in the action.
The Final Judgment, to which Steckler consented without admitting or denying the allegations in the Commission’s complaint, imposes a $35,000 civil monetary penalty. The Commission’s complaint alleged that Steckler participated in placing a $7 million order with Legato on behalf of Steckler’s employer, which was subject to a separate, undisclosed “side” agreement that gave his employer the right to cancel the order. As a result, Legato materially overstated its financial results for its third quarter ending September 30, 1999.
Simultaneous with the filing of Steckler’s consent to the Final Judgment, the Commission instituted a cease-and-desist order against Steckler committing or causing future violations of Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934, and Rules 10b-5, and 13b2-1, thereunder, and from causing future violations of Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 12b-20 and 13a-13 thereunder. The Commission’s order, to which Steckler consented without admitting or denying the findings, finds that Steckler caused Legato’s and other persons’ violations of the antifraud and related provisions.