U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19443 / October 25, 2005
Accounting and Auditing Enforcement
Release No. 2340 / October 25, 2005
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)
FEDERAL COURT ENJOINS OCUMED GROUP, FORMER CEO AND DIRECTOR; ORDERS DISGORGEMENT AND PENALTIES EXCEEDING $940,000; ISSUES OFFICER AND DIRECTOR BARS
On October 18, 2005, the Honorable Ellen S. Huvelle of the U.S. District Court for the District of Columbia issued a final judgment against Ocumed Group, Inc. ("Ocumed"), a former New Jersey based manufacturer of eye care products; Alfred R. Caggia, its former CEO; and Louise A. Cummings, a former director. The final judgment, effective as of September 21, 2005, permanently enjoins each from violating Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 thereunder and permanently enjoins Caggia and Cummings from aiding and abetting any violation of Section 13(a) of the Exchange Act. It also orders Caggia and Cummings to pay disgorgement, pre-judgment interest, and civil penalties totaling $915,753 and $25,000, respectively, and bars each from serving as an officer or director of a public company.
In its Complaint filed May 24, 2004, the Commission alleged that Ocumed, Caggia, and Cummings violated or aided and abetted violations of antifraud and/or reporting provisions of the securities laws by including a forged auditor's report with Ocumed's Form 10-KSB for the fiscal year ended April 30, 2002 to make it appear that the company's 2002 financial statements were audited. In fact, there was no audit. The Complaint alleged that Caggia created the forged auditor report and signed the Form
10-KSB, and that Cummings signed the Form 10-KSB without reading or taking any steps to ascertain whether it was true and accurate.
For additional information, see Litigation Release No. 18723 (May, 24, 2004).