U.S. Securities and Exchange Commission

Litigation Release No. 21669 / September 28, 2010

Securities and Exchange Commission v. Paul R. Beckwith, et al., Civil Action No. 1:10cv00162 (D. Utah)

The Securities and Exchange Commission obtained an Ex Parte Asset Freeze Order against Paul R. Beckwith, CPA (Beckwith) and Paul R. Beckwith dba Beckwith CPA'S. The Order was entered September 27, 2010, by the Honorable Dale A. Kimball, United States District Judge for the District of Utah.

The Commission's complaint against Beckwith alleges that Beckwith, the assistant controller of the Salt Lake City company Theradoc, Inc. (Theradoc), a subsidiary of Hospira, Inc. (Hospira) has been transferring funds from Theradoc's operating account into a personal account controlled by Beckwith since at least February of 2009. The most recent withdrawal occurred on September 15, 2010. Beckwith then deposited those funds in trading accounts maintained at TD Ameritrade, a broker-dealer. Beckwith traded securities in those accounts, keeping profits and recently, incurring losses. The Complaint also alleges that in order to cover up his conduct, Beckwith transmitted false information to Hospira.

The Commission's complaint charges Beckwith with violations of Section 13(b)(5) of the Securities Exchange Act of 1934 (Exchange Act) and Rule 13b2-1 thereunder and aiding and abetting violations of Section 13(b)(2)(A) of the Exchange Act. The complaint seeks an injunction, disgorgement and civil penalties.

The Commission acknowledges the assistance of the United States Attorney's Office for the District of Utah and the Federal Bureau of Investigation in this matter.

See Also: SEC Complaint


Last modified: 9/28/2010