Litigation Release No. 19438 / October 20, 2005

Accounting and Auditing Enforcement
Release No. 2338 / October 20, 2005

SECURITIES AND EXCHANGE COMMISSION v. Eric Tyra, Scott Wynne, Peter Berman, and Scott Carey, Civil Action No. CV-04-P-1052-S (N.D. Al.)

The Securities and Exchange Commission announced that the Honorable R. David Proctor, United States District Judge for the Northern District of Alabama, entered a Final Judgment As To Defendant Eric Tyra, enjoining him from future violations of Section 17(a) of the Securities Act of 1933, Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 and Rules 10b-5, 13b2-1 and 13b2-2, and from aiding and abetting violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder. Tyra consented to the entry of the judgment without admitting or denying the allegations of the Commission's Complaint. The court ordered disgorgement against Tyra in the amount of $1, and a civil penalty in the amount of $67,500, and prohibited Tyra from acting as an officer or director of any issuer that has a class of registered securities for a period of ten years.

The Commission's Complaint, filed on May 21, 2004 alleged various fraudulent practices in connection with the financial statements of Just for Feet, Inc., a large shoe and sports apparel retailer formerly headquartered in Birmingham, Alabama. The Complaint alleged that Tyra, Just for Feet's chief financial officer, and others, among other things, recorded on Just for Feet's books unearned receivables and failed to create an adequate reserve for excess or obsolete inventory. The overstatement of income and assets resulting from this misconduct was reflected on Just for Feet's financial statements included in its Form 10-K filed for fiscal year 1998, Forms 10-Q filed for the first and second quarters of fiscal year 1999, and in its registration statements on Forms S-8 and S-4 filed in May and June of 1999, respectively.

See also: L.R. 18139 (May 15, 2003); L.R. 18571 (February 6, 2004); L.R. 18575 (February 13, 2004); L.R. 18731 (June 1, 2004); and L.R. 19163 (March 31, 2005).