U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19437 / October 20, 2005
Accounting and Auditing Enforcement
Release No. 2337 / October 20, 2005
SECURITIES AND EXCHANGE COMMISSION v. LUCENT TECHNOLOGIES INC., et al., Civil Action No. 04-2315 (WFW) (MF) (filed May 17, 2004)
COURT ENTERS FINAL JUDGMENT AGAINST DAVID ACKERMAN
On October 18, 2005, the U.S. District Court for the District of New Jersey entered final judgment against David Ackerman ("Ackerman"), an officer of Winstar Communications Inc. ("Winstar"), based upon charges of aiding and abetting fraud committed by Lucent Technologies, Inc. ("Lucent"). In its Complaint filed on May 17, 2004, the Commission alleged that Ackerman aided and abetted fraudulent conduct by Lucent's own employees and engaged in a scheme with co-defendant William Plunkett, a former sales Vice President at Lucent, that resulted in Lucent misrecording $125 million of revenue in connection with a software purchase by Winstar at the end of Lucent's fourth quarter of its fiscal year 2000. Lucent, Plunkett, and two other individuals have previously settled the Commission's action against them.
Without admitting or denying the allegations in the Commission's Complaint, Ackerman consented to the entry of the final judgment, which permanently enjoins him from violating an antifraud provision of the federal securities laws, specifically, Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder. The Court also enjoined Ackerman from aiding and abetting violations of the periodic reporting and books and records provisions of the Exchange Act, specifically, Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 12b-20 and 13a-11 thereunder, and ordered Ackerman to pay a $50,000 civil penalty. The Commission's action continues against former Lucent employees Nina Aversano, Jay Carter, A. Leslie Dorn, John Bratten, Charles Elliott, and Michelle Hayes-Bullock.
For more information, see Litigation Release No. 18715 (May 17, 2004).