UNITED STATES OF AMERICA
In the Matter of
ELAINE A. DECKER, CPA,
|ORDER INSTITUTING PROCEEDINGS PURSUANT TO RULE 102(e) OF THE COMMISSION'S RULES OF PRACTICE, MAKING FINDINGS AND IMPOSING REMEDIAL SANCTIONS|
The Securities and Exchange Commission (the "Commission") deems it appropriate and in the public interest to institute public administrative proceedings against Elaine A. Decker ("Decker"), a certified public accountant, pursuant to Rule 102(e)(3)(i)(A) of the Commission's Rules of Practice. Accordingly, IT IS HEREBY ORDERED that said proceedings be, and hereby are, instituted.
In anticipation of the institution of these proceedings, Decker has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept. Solely for the purposes 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 Decker admits the jurisdiction of the Commission over her and over the subject matter of these proceedings and that a final judgment of permanent injunction has been entered against her) Decker consents to the entry of this Order Instituting Proceedings Pursuant to Rule 102(e) of the Commission's Rules of Practice Making Findings and Imposing Remedial Sanctions ("Order").
On the basis of this Order and Decker's Offer, the Commission finds that:
Decker, 36, a certified public accountant who was duly licensed by the state of Georgia at all relevant times, was a defendant in Securities and Exchange Commission v. Timothy Heyerdahl, et. al., Civ. No. C-01-3651 MMC, in the United States District Court for the Northern District of California. Decker, former director of contract accounting and contract development and administration for McKesson HBOC Inc. ("McKesson HBOC" or the "Company"), resides in Georgia.
On October 2, 2001, the United States District Court for the Northern District of California: (1) permanently enjoined Decker from future violations of Section 17(a) of the Securities Act of 1933 ("Securities Act"), Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B) and 13(b)(5) of the Securities Exchange Act of 1934 ("Exchange Act"), and Rules 10b-5, 12b-20, 13a-13 and 13b2-1 thereunder; and (2) ordered Decker to pay civil money penalties pursuant to Section 21A of the Exchange Act. Decker consented, without admitting or denying the allegations contained in the Commission's complaint (except as to jurisdiction, which she admitted), to the issuance of the order of permanent injunction and to the entry of final judgment thereon.
The Commission's complaint in the above action alleged, in part, that Decker: (1) contributed to the compilation of false and misleading financial statements during and for the quarters ending June 30, 1998 and September 30, 1998 as incorporated in McKesson HBOC's quarterly reports on Form 10-Q that were not prepared in accordance with Generally Accepted Accounting Principles and that materially overstated McKesson HBOC's product revenue; (2) caused McKesson HBOC's books and records to be falsified and circumvented its internal accounting controls; and (3) failed to disclose information in response to questions by McKesson HBOC's independent auditors that would have revealed certain of the company's fraudulent revenue recognition practices.
Based on the foregoing, the Commission deems it appropriate and in the public interest to impose the sanction consented to by Decker in her Offer.
Accordingly, IT IS HEREBY ORDERED that, effective immediately:
By the Commission.
Jonathan G. Katz
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