SEC Charges California Company in Scheme to Improperly Capitalize Expenses to Cover Up Lost Profits from Compliance with a New Accounting Pronouncement

Complaint filed in the U.S. Distri ct Cour t for the Northern District of California requesting a permanent injunction against future violations of § 17(a)(2) and (a)(3) of the Securities Act of 1933, §§ 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Securities Exchange Act of 1934, and Rules 12b-20, 13a-1, and 13a-13 under the Exchange Act.

Allegations:

According to a complaint filed on July 23, 2009, in February 2004 West Marine, Inc., a publicly traded boating supply retailer, issued a press release preannouncing its earnings for fiscal year 2003.

SEC Seeks Reimbursement of CEO’s Bonuses and Stock Profits Earned During Period of Accounting Fraud at Public Company

Complaint filed in the U.S. District Court for the District of Arizona alleg ing violations of § 304 of the Sarbanes-Oxley Act of 2002.

Background Facts:

In March 2009, the SEC filed a civil injunctive action in federal court charging the former president and chief operating officer, former chief financial officer, former controller, and former director of credits and receivables of CSK Auto Corporation, an automotive parts and accessories retailer headquartered in Arizona, with securities fraud, among other charges. In May 2009, the SEC instituted settled cease-and-desist proceedings against CSK and found that the company had fraudulently filed false financial statements as set forth above for fiscal years 2002 through 2004. In that settled proceeding, the SEC ordered CSK to cease and desist from committing or causing any violations and any future violations of the antifraud, reporting, books and records, and internal control provisions of the federal securities laws. CSK, in agreeing to that settlement, neither admitted nor denied the SEC’s findings.

Allegations:

According to a complaint filed on July 22, 2009, the SEC asked the U.S. District Court for the District of Arizona to order the former chief executive officer of CSK Auto Corporation, Maynard L. Jenkins of Scottsdale, Arizona, to reimburse the company and its shareholders more than $4 million that he received in bonuses and stock sale profits while CSK was committing accounting fraud during 2002-2004.

Colorado Securities Commissioner Files Suit Against Oil and Gas Promoters for Fraudulent Investment Scheme

0in; margin-bottom: .0001pt; margin-left: .1in;">Civil complaint filed in District Court in the city and county of Denver, Colorado alleging violations of § 11-51-301 C.R.S. for the offer or sale of unregistered securities; violation of § 11-51-401(2) C.R.S. for unlicensed sales representative activity; violations of §§ 11-51-501(1) C.R.S. and 11-51-604(4) for fraud and deceit related to the sale of securities; and, as to the attorney defendants, violation of § 11-51-604(5)(c) for joint and several liability.

Underlying Facts:

According to a complaint filed by the Colorado Securities Commissioner in Denver District Court on July 22, 2009, four businesses, their lawyer, and eight individuals violated the anti-fraud, registration, and licensing provisions of the Colorado Securities Act in connection with their marketing and promotion of investments in oil and gas well-drilling operations. Named in the complaint are