U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 19163 / March 31, 2005
Accounting and Auditing Enforcement
Release No. 2221 / March 31, 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 Peter Berman ("Berman"), 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 ("Exchange Act") and Rules 10b-5, 13b2-1 and 13b2-2 thereunder, 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. Berman consented to the entry of the judgment without admitting or denying any of the allegations of the Commission's Complaint. Further, the court ordered disgorgement and prejudgment interest against Berman in the respective amounts of $15,000 and $6,327. Berman was also ordered to pay a civil penalty of $30,000, and was prohibited from acting as an officer or director of any issuer that has a class of registered securities.
Berman was the comptroller of Just for Feet, Inc., a large shoe and sports apparel retailer formerly headquartered in Birmingham, Alabama. The Commission's Complaint, filed on May 21, 2004, alleged that Berman and others caused the accounting department of Just for Feet to book receivables that he knew or should have known had not been earned, and failed to make necessary adjustments to the company's inventory obsolescence reserves. 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); and L.R. 18731 (June 1, 2004).