Outline of Recent SEC Enforcement Actions Submitted by: 1 Joan McKown Chief Counsel Prepared by: 2 Division of Enforcement U.S. Securities and Exchange Commission Washington, D.C. 1 The Securities and Exchange Commission, as a matter of policy, disclaims responsibility for any private publication or statement by any of its employees. The views expressed herein are those of the authors and do not necessarily reflect the views of the Commission or its staff. 2 Parts of this outline have been used in other publications. Table of Contents CASES INVOLVING FINANCIAL FRAUD & OTHER DISCLOSURE AND REPORTING VIOLATIONS...................................................................................................................2 SEC v. Jacob Alexander, David Kreinberg, and William F. Sorin ...................................................................... 2 SEC v. MBIA Inc........................................................................................................................................................... 3 In the Matter of City of San Diego, California ......................................................................................................... 3 SEC v. Viper Capital Management, LLC, et al. ....................................................................................................... 4 SEC v. Michael Moran, James Sievers, Martin Zaepfel, James Cannataro, John Steele, Michael Crusemann and Michael Otto ............................................................................................................................... 5 SEC v. Delphi Corporation, J.T. Battenberg, III, Alan Dawes, Paul Free, John Blahnik, Milan Belans, Catherine Rozanski, Judith Kudla, Scot McDonald, B.N Bahadur, Atul Pasricha, Laura Marion, Stuart Doyle and Kevin Curry .............................................................................................................................. 6 SEC v. Pinnacle Development Partners LLC ........................................................................................................... 7 SEC v. Salvatore Favata............................................................................................................................................... 8 Securities and Exchange Commission v. Doral Financial Corporation................................................................ 8 SEC v. Jacob Jon W. James; J.W. James & Associates; J.W. James Borrowing Entity, LLC; J.W. James Investment Group Fund One, LLC; The James Company Fund I, LLC; The James Company Borrowing Entity, LLC; Virtual Cash Flow Corporation; The Cloaking Device, Inc.; and J.W. James Acquisitions, LLC.................................................................................................................................................... 9 SEC v. Jacob (“Kobi”) Alexander, David Kreinberg, and William F. Sorin..................................................... 10 SEC v. Gregory L. Reyes, et al. ................................................................................................................................. 11 SEC v. Raytheon Company, Daniel P. Burnham, and Aldo R. Servello ............................................................ 12 In the Matter of Raytheon Company, Daniel P. Burnham, and Aldo R. Servello ............................................ 12 SEC v. Scientific-Atlanta, Inc.................................................................................................................................... 13 In the Matter of Wallace G. Haislip ......................................................................................................................... 13 In the Matter of Julian W. Edison ............................................................................................................................ 14 In the Matter of Tribune Company.......................................................................................................................... 15 SEC v. Federal National Mortgage Association ..................................................................................................... 15 SEC v. Henry C. Yuen ................................................................................................................................................ 16 SEC v. Elsie M. Leung ................................................................................................................................................ 16 In the Matter of Jonathan B. Orlick, Esq................................................................................................................ 16 SEC v. Tyco International Ltd. ................................................................................................................................. 17 SEC v. American International Group, Inc. ........................................................................................................... 18 SEC v. Ronald Ferguson, et al................................................................................................................................... 19 SEC v. Alan C. Goldsworthy, Walter T. Hilger, and Mark E. Sullivan............................................................. 20 SEC v. McAfee, Inc. .................................................................................................................................................... 21 SEC v. Charles C. Conaway and John T. McDonald, Jr. ..................................................................................... 22 SEC v. Fredrick S. Schiff and Richard J. Lane...................................................................................................... 22 SEC v. Bernard J. Ebbers .......................................................................................................................................... 23 SEC v. HealthSouth Corporation et al..................................................................................................................... 24 SEC v. John Houldsworth and Richard Napier ..................................................................................................... 24 SEC v. Roys Poyiadjis, Lycourgos Kyprianou et al............................................................................................... 25 SEC v. Time Warner, Inc........................................................................................................................................... 25 In the Matter of James W. Barge, Pascal Desroches, and Wayne H. Pace ........................................................ 25 CASES INVOLVING REGULATION FD .......................................................................26 SEC v. Flowserve Corporation and C. Scott Greer ............................................................................................... 26 In the Matter of Flowserve Corporation, C. Scott Greer, and Michael Conley................................................ 26 CASES INVOLVING ACCOUNTANTS AND AUDITORS.............................................27 In the Matter of Clete D. Madden, CPA, and David L. Huffman, CPA............................................................. 27 In the Matter of Aron R. Carr, CPA ........................................................................................................................ 27 SEC v. KPMG LLP ..................................................................................................................................................... 28 SEC v. KPMG LLP, et al. .......................................................................................................................................... 28 SEC v. KPMG LLP ..................................................................................................................................................... 28 In the Matter of KPMG LLP..................................................................................................................................... 28 In the Matter of KPMG LLP, Gary Bentham, C.A., and John Gordon, C.A. .................................................. 29 In the Matter of Deloitte & Touche LLP, Steven H. Barry, CPA, and Karen T. Baker, CPA ....................... 30 SEC v. Deloitte & Touche LLP ................................................................................................................................. 31 In the Matter of Deloitte & Touche LLP ................................................................................................................. 31 In the Matter of KPMG LLP..................................................................................................................................... 31 CASES INVOLVING FOREIGN PAYMENTS................................................................32 In the Matter of Schnitzer Steel Industries, Inc. .................................................................................................... 32 SEC v. Statoil, ASA ..................................................................................................................................................... 33 In the Matter of Oil States International, Inc. ........................................................................................................ 34 In the Matter of Diagnostic Products Corporation................................................................................................ 34 SEC v. The Titan Corporation .................................................................................................................................