Tuesday, February 12, 2008
The SEC settled charges against Bartholomew F. Palmisano, Jr., the former Chief Financial Officer of OCA, Inc. ("OCA"). The SEC alleged that during twelve different quarters during 1998 through 2001, Palmisano recorded eighteen fraudulent journal entries on OCA's general ledger that had the cumulative effect of creating approximately $71 million of fictitious revenue. The fictitious revenue created by these journal entries was always at least the amount OCA needed to meet that quarter's Wall Street analysts' consensus earnings per share expectations. The false financial information resulting from Palmisano's misconduct was included in at least twelve Forms 10-Q and four Forms 10K for each of the years ended December 31, 1998 through 2001. In May 2005, Palmisano tried to cover-up his fraud and provided false information and documents in response to an inquiry by OCA's independent auditors concerning a fixed asset balance related to one of the fraudulent journal entries.
Palmisano, without admitting or denying the allegations of the Commission's Complaint, consented to the entry of a permanent injunction against future violations, agreed to pay a civil penalty in the amount of $100,000 and will be barred from acting as an officer or director of a public company for ten years. The settlement is subject to the Court's approval.