SECURITIES EXCHANGE ACT OF 1934
Release No. 42547 / March 20, 2000
ACCOUNTING AND AUDITING ENFORCEMENT
Release No. 1235 / March 20, 2000
File No. 3-10161
|: ORDER INSTITUTING PUBLIC|
|In the Matter of||: PROCEEDINGS, MAKING FINDINGS,|
|H. DeWorth Williams,||: AND IMPOSING A|
|: CEASE-AND-DESIST ORDER|
The Securities and Exchange Commission ("Commission") deems it appropriate that public cease-and-desist proceedings be, and hereby are, instituted pursuant to Section 21C of the Securities Exchange Act of 1934 ("Exchange Act") to determine whether H. DeWorth Williams ("Williams" or "respondent") caused violations of Section 13(a) of the Exchange Act, Rule 13a-1 thereunder, and Rule 12b-20.
In anticipation of the institution of these proceedings, Williams has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept. Solely for the purpose of these proceedings and any other proceedings brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings contained herein, except that Williams admits the jurisdiction of the Commission over him and over the subject matter of these proceedings, Williams consents to the issuance of this Order Instituting Public Proceedings, Making Findings, and Imposing a Cease-And-Desist Order ("Order") and to the entry of findings and the imposition of the relief set forth below.
On the basis of this Order and respondent's Offer, the Commission finds the following:
A. Williams, age 54, resides in Park City, Utah. He is a director of Laser Technology, Inc. ("Laser Tech"), a corporation whose stock is registered with the Commission pursuant to Section 12(b) of the Exchange Act.
B. In approximately September 1997, at a time when he was a director of Laser Tech, Williams paid $165,000 by check to Laser Tech at the request of his brother, David Williams, then president and chairman of Laser Tech.
C. On or about December 31, 1997, Williams signed Laser Tech's annual report on Form 10-K for the fiscal year ended September 30, 1997. Laser Tech filed the annual report with the Commission shortly thereafter. The annual report was required to disclose certain related transactions as set forth in Item 404 of Regulation S-K [17 C.F.R. § 229.404], but it did not disclose the payment made by Williams to Laser Tech. Instead it stated that Laser Tech had no transactions with related parties.
D. Williams knew or should have known that it was false and misleading for the annual report to state that Laser Tech had no transactions with related parties. By signing the annual report under such circumstances, Williams caused Laser Tech to violate Section 13(a) of the Exchange Act, Rule 13a-1 thereunder, and Exchange Act Rule 12b-20.
Accordingly, IT IS HEREBY ORDERED, pursuant to Section 21C of the Exchange Act, that Williams cease and desist from causing any violation, and any future violation, of Section 13(a) of the Exchange Act, Rule 13a-1 thereunder, and Exchange Act Rule 12b-20.
By the Commission.
Jonathan G. Katz