U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 20337 / October 17, 2007
Accounting and Auditing Enforcement Release No. 2742 / October 17, 2007
SEC v. Cedric Kushner Promotions, Inc., et al., Civil Action No. 04-CV-2324 (TPG) (S.D.N.Y.)
James DiLorenzo, Former Executive and Principal Financial and Accounting Officer of Boxing Promoter Cedric Kushner Promotions, Inc. Agrees to Permanent Injunction, Time Limited Officer and Director Bar, and Civil Penalty in Settlement of SEC Fraud Charges
The Securities and Exchange Commission ("Commission") announced today that James DiLorenzo ("DiLorenzo"), the former Executive Vice President and Principal Financial and Accounting Officer of New York-based boxing promoter Cedric Kushner Promotions, Inc. ("CKP"), has agreed to settle the Commission's civil injunctive action pending against him in U.S. District Court for the Southern District of New York. The Commission's March 24, 2004 Complaint charged DiLorenzo and others with fraud and other federal securities law violations for their conduct in connection with the filing of an annual report and amended annual report in 2003 without the consent of the company's auditors. The Complaint also alleged that DiLorenzo and others knew, or were reckless in not knowing, that the company's financial statements included in its fiscal year 2002 filings were materially false and misleading. See Litigation Release No. 18638. DiLorenzo has agreed to settle all of the Commission's charges against him.
Without admitting or denying the allegations of the Commission's Complaint, DiLorenzo consented to the entry of an order: (1) permanently enjoining him from violating Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Exchange Act Rules 10b-5 and 13a-14, and from aiding and abetting violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Exchange Act Rules 12b-20 and 13a-1; (2) barring him from serving as an officer or director of any public company for a period of three years; and (3) ordering him to pay a civil penalty of $25,000. Exchange Act Rule 13a-14, added by the Sarbanes-Oxley Act, required DiLorenzo, as CKP's Principal Financial and Accounting Officer, to certify the accuracy and completeness of the company's financial reports.
Previously, in 2005, also without admitting or denying the allegations in the Commission's Complaint, CKP, currently doing business as CKRUSH, Inc., and Cedric Kushner ("Kushner"), CKP's former Chairman, President, CEO and Founder, each settled with the Commission in 2005 for their alleged roles in the fraudulent filings. Both defendants consented to the issuance of orders imposing, among other things, anti-fraud injunctions. Kushner also consented to a civil penalty and officer and director bar. CKP also consented to certain required remedial undertakings. See Litigation Release No. 19485.