LITIGATION RELEASE NO. 17843 / November 15, 2002
ACCOUNTING AND AUDITING ENFORCEMENT RELEASE NO. 1666 / November 15, 2002
SECURITIES AND EXCHANGE COMMISSION V. LARRY OHMS, Defendant, Civil Action No. 3:02-CV-2361-D (U.S.D.C. N.D. TX)(Dallas Division)
On November 12, 2002, Judge Sidney A. Fitzwater, United States District Judge for the Northern District of Texas (Dallas Division), permanently enjoined Larry T. Ohms, the former treasurer of Dallas-based United States Lime & Minerals, Inc. (Nasdaq: USLM) ("U.S. Lime" or "the company"), from future violations of the federal securities laws and from serving as an officer or director of a public reporting company. Ohms consented to the order. The SEC charged Ohms with financial fraud and other securities law violations related to his embezzlement of nearly $2.2 million from the company during a four-year period. Ohms, age 40, resides in Carrollton, Texas.
According to the Commission's complaint, Ohms held a number of positions at U.S. Lime between January 1998 and December 2001, including corporate controller, secretary, treasurer, and vice president of finance. The Commission's complaint further alleged that Ohms forged the signatures of other company officers on dozens of checks, and falsified the company's check register to create the appearance that the amounts that he personally received or gave to his creditors went to vendors for U.S. Lime's legitimate business expenses. Additionally, the complaint alleged that while Ohms initially embezzled relatively small amounts, his thefts escalated to the point that they were too large to conceal, at which point he abruptly resigned.
Without admitting or denying the allegations of the Commission's complaint, Ohms consented to an order permanently enjoining him from further violating, or aiding and abetting violations of, Sections 10(b), 13(a)(2), 13(b)(2)(A), and 13(b)(5) of the Securities Exchange Act of 1934 and Rules 10b-5, 12b-20, 13a-1, 13a-13, 13b2-1 and 13b2-2 thereunder. In addition, Ohms consented to an order permanently enjoining him from serving as an officer or director of a public reporting company. Ohms, on October 21, 2002, entered into a plea agreement admitting to one count of wire fraud and one count of making a false statement to a government agency in connection with the scheme alleged in the Commission's complaint. He is expected to enter a formal plea of guilty in late November 2002 and upon sentencing, the Court will likely order him to pay $2.2 million in restitution.