Friday, October 21, 2005
Eric Tyra, the former CFO of Just For Feet, Inc., settled an SEC securities fraud action alleging accounting fraud related to the booking of receivables and write-downs for obsolete inventory. Tyra agreed to pay $1 in disgorgement, a token amount that allows for the imposition of a $67,500 civil money penalty and a ten-year bar from serving as an officer or director of a publicly-traded company. According to the SEC's Litigation Release (here):
The Commission's Complaint, filed on May 21, 2004 alleged various fraudulent practices in connection with the financial statements of Just for Feet, Inc., a large shoe and sports apparel retailer formerly headquartered in Birmingham, Alabama. The Complaint alleged that Tyra, Just for Feet's chief financial officer, and others, among other things, recorded on Just for Feet's books unearned receivables and failed to create an adequate reserve for excess or obsolete inventory. The overstatement of income and assets resulting from this misconduct was reflected on Just for Feet's financial statements included in its Form 10-K filed for fiscal year 1998, Forms 10-Q filed for the first and second quarters of fiscal year 1999, and in its registration statements on Forms S-8 and S-4 filed in May and June of 1999, respectively.