SECURITIES AND EXCHANGE COMMISSIONWashington, D.C.
Securities Exchange Act of 1934
Administrative Proceedings Initiated to Revoke Registration of Microcap Stock
IN THE MATTER OF AMERICAN TELEPHONE + DATA, INC.
Administrative Proceeding File No. 3-9946
The Securities and Exchange Commission today instituted public administrative proceedings, pursuant to Section 12(j) of the Securities Exchange Act of 1934, to determine whether to revoke the registration with the Commission of the common stock of American Telephone + Data, Inc. (AT+D).
AT+D, a microcap company based in Costa Mesa, California, formerly was traded on the OTC Bulletin Board. According to a complaint filed on August 2, 1999, by the Commission in U.S. District Court in Los Angeles, California, AT+D dramatically overstated the value of its assets in financial statements filed with the Commission in 1993. Securities and Exchange Commission v. American Telephone + Data, Inc., William Posnett Lynas, III, Janeen Hauxhurst-Lynas and Daniel W. Kratochvil, No. 99- (C.D. Cal. filed August 2, 1999). The Commission alleges that in 1993 AT+D filed with the Commission financial statements that included fictional assets, which resulted in the overstatement of the company's total assets by between 74% and 87%. Chief among these assets were certain purported licensing rights to a high-speed facsimile transmission system that were valued on AT+D's balance sheets at $10 million. The Commission alleges that the licensing rights did not exist.
The order instituting proceedings further alleges that AT+D has failed to file annual and quarterly periodic reports with the Commission for any fiscal period subsequent to its fiscal quarter ended September 30, 1994, and therefore is in violation of provisions requiring such current reports.
A hearing will be held before an Administrative Law Judge to determine whether the staff's allegations in the Order Instituting Proceedings are true and, if so, whether the company's registration should be revoked.