(The news featured below is a selection from the news covered in Federal Securities Law Reporter, which is distributed to subscribers of Federal Securities Law Reporter.)

Accountant Sanctioned in Options Backdating Case

The SEC charged that a company controller, at the direction of others, backdated company stock options to coincide with low points in the closing market price for the company's common stock, allegedly resulting in approximately $20 million of ill-gotten benefits to company insiders. The SEC also charged that the controller, at the direction of others, engaged in other manipulative stock option granting practices, such as canceling and reissuing options that had fallen out of the money and issuing unauthorized options to non-employee directors.

Without admitting or denying the findings, the controller consented to an order permanently enjoining him from future violations of various provisions of the securities laws. The order required him to pay $518,972.50 in disgorgement, $108,099 in prejudgment interest and a $259,486 civil penalty. The SEC also suspended the individual from appearing or practicing before the Commission as an accountant.

Release No. 34-55432 is reported at ¶87,770.