LITIGATION RELEASE NO. 17058 / July 3, 2001
ACCOUNTING AND AUDITING ENFORCEMENT RELEASE NO.1419/ July 3, 2001
SEC v. Mar-Jeanne Tendler, Arthur Tendler and Billie M. Jolson, Case No. C 99-1200 DOC, USDC, CDCal.
JUDGMENT ENTERED AGAINST FORMER WIZ TECHNOLOGY OFFICERS FOR ACCOUNTING FRAUD
A United States District Court has entered judgment against Mar-Jeanne Tendler and Arthur Tendler, both of Dana Point, California. The Tendlers were former officers and directors of a consumer software manufacturer, WIZ Technology, Inc. The judgment prohibits them from engaging in securities fraud in the future. The judgment also prohibits the couple from acting as directors or officers of any public company and requires that they pay $25,000 in disgorgement.
The Commission alleged in its complaint that Mar-Jeanne and Arthur Tendler used accounting gimmicks, sham sales, and backdated agreements artificially to inflate WIZ's publicly reported sales, income, and assets in quarterly reports and press releases issued during 1995, 1996, and 1997. The company filed bankruptcy in 1997.
The Tendlers consented to the entry of the judgment without admitting or denying the allegations made by the Commission.
A third defendant, Billie M. Jolson, passed away while the action was pending and the Commission voluntarily dismissed the case against her.
The action was brought and the injunction entered under Section 17(a) of the Securities Act of 1933, Sections 10(b), 13(a), 13(b)(2)(A), 13(b)(2)(B), 13(b)(5) and 16(a) of the Securities and Exchange Act of 1934, and Rules 10b-5, 12b-20, 13a-13, 13b2-1 and 16a-3.