SEC v. Michael Scrivo; and Leslie Wasser, No. LR-18801, Southern District of New York — Press Release
raw: Michael Scrivo
Michael Scrivo, No. LR-18801
Michael Scrivo, former VP of Operations at Vicon Fiber Optics, fraudulently inflated inventory to reduce reported net loss by 22% in Vicon’s 1999 and 2000 financial statements, then concealed it by falsely claiming the inventory was defective, and settled with the SEC by consenting to an injunction, a $20,000 penalty, and a bar from serving as an officer or director, while former CFO Leslie Wasser was barred from practicing before the SEC for causing the same violations.
Michael Scrivo, former vice president of operations at Vicon Fiber Optics, orchestrated a scheme to inflate inventory values in Vicon’s 1999 annual report and Q2 2000 Form 10-Q by fabricating documents for non-existent inventory, which reduced the company’s reported net loss by 22%. He later attempted to conceal the fraud by falsely reporting in the Q2 2000 filing that the inventory was defective and had been scrapped. Scrivo consented to a permanent injunction barring him from securities law violations and from serving as an officer or director of a public company, and paid a $20,000 civil penalty; former CFO Leslie Wasser was found to have caused the same violations and was barred from appearing or practicing before the SEC as an accountant.
Michael Scrivo, former vice president of operations at Vicon Fiber Optics, engineered a fraudulent scheme to inflate the company’s inventory in its 1999 annual report and Q2 2000 quarterly filing by including non-existent inventory, which artificially reduced Vicon’s reported net loss by 22%. To support the fraud, Scrivo fabricated documents that falsely reflected the existence of this inventory. When the scheme began to unravel, he attempted to conceal it by falsely claiming in the Q2 2000 Form 10-Q that the overstated inventory was defective and had been scrapped. Without admitting or denying the allegations, Scrivo consented to a final judgment enjoining him from violations of key provisions of the Securities Exchange Act of 1934, including antifraud, reporting, books and records, and internal controls rules. He also agreed to be barred from serving as an officer or director of any public company and paid a $20,000 civil penalty. Separately, the SEC instituted administrative proceedings against former CFO Leslie Wasser, finding that he caused the same violations of the Exchange Act due to his role as a certified public accountant overseeing the financial reporting. Wasser consented to a cease-and-desist order and was denied the privilege of appearing or practicing before the SEC as an accountant. Both parties settled without admitting or denying the SEC’s allegations.
Extracted insights
- $20K $20,000 $10K–$100K
- organization The Commission
- Michael Scrivo charged with violations antifraud, reporting, books and records, and internal controls provisions
- The Commission filed a complaint against Michael Scrivo, former vice president of operations of Vicon Fiber Optics Corporation
- Michael Scrivo inflated inventory in Vicon's 1999 annual report and second quarter 2000 quarterly report
The Commission today announced that it filed a complaint in the United States District Court for the Southern District of New York against Vicon Fiber Optics Corporation's former vice president of operations, Michael Scrivo. Vicon, headquartered in Pelham Manor, New York, manufactures and sells fiber optic illuminating systems. The case involves a scheme to inflate Vicon's inventory in Vicon's 1999 annual report and quarterly report for the second quarter of 2000. In its complaint, the Commission charged Scrivo with violations of the antifraud, reporting, books and records, and internal controls provisions of the Securities Exchange Act of 1934 ("Exchange Act"). The Commission also announced that it instituted settled cease-and-desist proceedings and proceedings pursuant to Rule 102(e) of the Commission's Rules of Practice against Vicon's former CFO Leslie Wasser. In the cease-and-desist proceeding, the Commission made findings that Wasser violated those same sections. In its complaint, the Commission alleged that Scrivo engaged in a fraudulent scheme to inflate Vicon's inventories in its 1999 year-end financial statements by including inventory, which did not exist. In furtherance of the scheme, Scrivo fabricated documents that reflected non-existent inventory and as a result, Vicon's reported net loss was decreased by 22% in its 1999 financial statement. Scrivo subsequently attempted to conceal and to reverse the overstated inventory by falsely reporting in Vicon's second quarter 2000 Form 10-Q that the inventory was defective and had been scrapped. Without admitting or denying the allegations of the complaint, Scrivo consented to the entry of a final judgment enjoining him from violations of Sections 10(b), 13(a), 13(b)(2), and 13(b)(5) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13, 13b2-1, and 13b2-2 thereunder. Scrivo also consented to be barred from acting as an officer or director of a public company and agreed to pay $20,000 in civil penalties. In its administrative Order, the Commission found that Wasser, a certified public accountant, committed or caused the same violations of the Exchange Act. Wasser consented to the entry of an administrative Order requiring him to cease and desist from committing or causing and violations and any future violations of the same provisions and denying him the privilege of appearing or practicing before the Commission as an accountant.The Commission today announced that it filed a complaint in the United States District Court for the Southern District of New York against Vicon Fiber Optics Corporation's former vice president of operations, Michael Scrivo. Vicon, headquartered in Pelham Manor, New York, manufactures and sells fiber optic illuminating systems. The case involves a scheme to inflate Vicon's inventory in Vicon's 1999 annual report and quarterly report for the second quarter of 2000. In its complaint, the Commission charged Scrivo with violations of the antifraud, reporting, books and records, and internal controls provisions of the Securities Exchange Act of 1934 ("Exchange Act"). The Commission also announced that it instituted settled cease-and-desist proceedings and proceedings pursuant to Rule 102(e) of the Commission's Rules of Practice against Vicon's former CFO Leslie Wasser. In the cease-and-desist proceeding, the Commission made findings that Wasser violated those same sections. In its complaint, the Commission alleged that Scrivo engaged in a fraudulent scheme to inflate Vicon's inventories in its 1999 year-end financial statements by including inventory, which did not exist. In furtherance of the scheme, Scrivo fabricated documents that reflected non-existent inventory and as a result, Vicon's reported net loss was decreased by 22% in its 1999 financial statement. Scrivo subsequently attempted to conceal and to reverse the overstated inventory by falsely reporting in Vicon's second quarter 2000 Form 10-Q that the inventory was defective and had been scrapped. Without admitting or denying the allegations of the complaint, Scrivo consented to the entry of a final judgment enjoining him from violations of Sections 10(b), 13(a), 13(b)(2), and 13(b)(5) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-13, 13b2-1, and 13b2-2 thereunder. Scrivo also consented to be barred from acting as an officer or director of a public company and agreed to pay $20,000 in civil penalties. In its administrative Order, the Commission found that Wasser, a certified public accountant, committed or caused the same violations of the Exchange Act. Wasser consented to the entry of an administrative Order requiring him to cease and desist from committing or causing and violations and any future violations of the same provisions and denying him the privilege of appearing or practicing before the Commission as an accountant.