(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.)

Officers, Directors of Retailer Settle Charges

The SEC settled enforcement actions against eight former officers and directors of Spiegel, Inc., an Illinois-based catalogue retailer. The settled charges involved 1) the alleged overstatement of the performance of Spiegel's credit card receivables portfolio and 2) the allegedly improper decision to withhold Spiegel's required financial reports to avoid issuance by its outside auditor of a going concern opinion. 

Linda Chatman Thomsen, Director of the Commission's Division of Enforcement, said, "the Commission's action against the Spiegel directors demonstrates that the Commission will hold those at the highest corporate ranks accountable for their conduct." She added that "directors who keep important financial information from the investing public by purposely failing to file required financial reports will be sanctioned."

The SEC settled the various charges with former co-presidents Michael Moran and James Sievers, former CEO Martin Zaepfel, former CFO James Cannataro, former treasurer John Steeleout, former board chairman Michael Otto and former directors Michael Crusemann and Horst Hansen. Without admitting or denying the Commission's allegations, Mr. Moran, Mr. Sievers, Mr. Cannataro, Mr. Steele, Mr. Otto, Mr. Crusemann and Mr. Zaepfel consented to the issuance of a permanent injunction enjoining them from future violations of the federal securities laws. 

In addition, Mr. Moran, Mr. Sievers, Mr. Cannataro and Mr. Steele consented to each pay a civil penalty of $120,000. Mr. Otto and Mr. Crusemann each consented to pay a civil penalty of $100,000, while Mr. Zaepfel consented to pay a civil penalty of $170,000. Finally, without admitting or denying the Commission's findings, Mr. Hansen has consented to the Commission's entry of an order ordering him to cease and desist from committing or causing future violations of the reporting provisions of the federal securities laws.