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Editor: Eric C. Chaffee
Univ. of Toledo College of Law

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Thursday, 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)

http://lawprofessors.typepad.com/securities/2007/02/sec_settles_fra.html

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