U.S. SECURITIES AND EXCHANGE COMMISSION

LITIGATION RELEASE NO. 16518 / April 18, 2000

ACCOUNTING AND AUDITING ENFORCEMENT RELEASE NO. 1250 / April 18, 2000

Securities and Exchange Commission v. Bradley J. Buchanan, Case No. 1:99CV02567 (ESH) (D.D.C.)

SEC GRANTED DEFAULT JUDGMENT AGAINST FORMER GENERAL MANAGER
CHARGED WITH FRAUD ARISING FROM THEFT OF OVER $400,000

The Securities and Exchange Commission today announced that on April 5, 2000, the Honorable Ellen S. Huvelle, United States District Judge, District of Columbia, entered a Final Judgment of Permanent Injunction by Default against defendant Bradley J. Buchanan, of Sarnia, Ontario, Canada. On September 28, 1999, the Commission filed a civil injunctive action alleging that Buchanan, a former employee of a subsidiary of Thor Industries, Inc., stole corporate funds totaling at least $415,000. According to the Complaint, to conceal his theft, give the appearance that the subsidiary was operating at a profit when it was not, and to earn performance bonuses, Buchanan made false entries to the subsidiary's books and records over a several year period. The default judgment permanently enjoins Buchanan from further violations of Section 17(a) of the Securities Act of 1933, and from further violations of Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 ("Exchange Act") and Rules 10b-5 and 13b2-1 thereunder. In addition, the default judgment permanently enjoins Buchanan from aiding and abetting further violations of Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 12b-20, 13a-1 and 13a-13 thereunder. The default judgment also permanently bars Buchanan from acting as an officer or director of any issuer required to file periodic reports with the Commission pursuant to Sections 12 or 15(d) of the Exchange Act.

See also Litigation Release No. 16302, and Accounting and Auditing Enforcement Release No. 1172 (September 28, 1999).

http://www.sec.gov/litigation/litreleases/lr16518.htm