U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19728 / June 14, 2006
United States v. Arthur A. Goodwin, (United States District Court for the District of Massachusetts, No. 03-CR-10197-RGS)
The Securities and Exchange Commission announced that on June 9, 2006, Arthur A. Goodwin of Plano, Texas was convicted of eight counts of securities and wire fraud following a nine day jury trial prosecuted by the Massachusetts U.S. Attorney's office in federal court in the District of Massachusetts. Goodwin was the former senior vice president of sales at Interspeed, Inc., a now defunct North Andover, Massachusetts Internet hardware developer. Goodwin was convicted of falsely overstating sales at Interspeed by approximately $9 million. Goodwin entered into secret side letter agreements with customers that provided the customers the right to return the goods purportedly sold to them; altered a sales contract for what would have been the company's largest sale in its history; and took other steps to hide the fraudulent nature of sales transactions he arranged. Judge Richard G. Stearns has scheduled sentencing for October 5, 2006. Goodwin faces up to 20 years' imprisonment on each of the four securities fraud counts, together with a fine of up to $5 million and restitution to Interspeed's former shareholders.
The Securities and Exchange Commission previously filed a civil injunctive action for financial fraud against Goodwin and others based on the same conduct. In that action, the Commission alleged that Goodwin and others engaged in a $9 million scheme which inflated sales between 25% and 93% from January to September 2000. The Commission seeks, among other things, civil monetary penalties and an order permanently barring Goodwin from acting as an officer or director of any public company.