February 1, 2007
SEC Settles Fraud Charges Agst Enterasys Asst. Controller
On Jan. 30, 2007, the Commission filed a settled civil fraud action in the United States District Court for the District of New Hampshire against Anthony L. Hurley, the former assistant controller for Enterasys Networks, Inc. and its former parent company, Cabletron Systems, Inc.
The complaint alleges that from March 2000 through December 2001,Hurley participated in a company-wide scheme to fraudulently inflate revenues at Enterasys and its former parent company, Cabletron, and thereby convince the market that Enterasys was a viable independent company with consistently strong revenue growth.
Hurley, without admitting or denying the allegations of the complaint, consented to an injunction against future violations. Additionally, Hurley consented to paying disgorgement in the amount of $24,498, plus prejudgment interest in the amount of $7,526, reflecting the full amount of his ill gotten gains. In a related criminal case, Hurley pled guilty to one count of wire fraud and cooperated with the U.S. Attorney's Office for the District of New Hampshire in the prosecution of U.S. v. Barber et al., Criminal No. 04-126 (D.N.H.). [SEC v. Anthony L. Hurley, Civil Action No. 07cv022, D.N.H.] (LR-19986)
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