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Technology Stocks : AremisSoft Corporation (AREM)
AREM 0.10000.0%Aug 17 4:00 PM EDT

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To: Arcane Lore who wrote (663)10/9/2001 7:53:41 AM
From: long-gone  Read Replies (1) of 683
Friday October 5, 1:21 am Eastern Time
CORRECTED - CORRECTED-AremisSoft ex-execs' assets frozen by judge-SEC
In Oct 4 Washington story headlined ``AremisSoft, ex-execs assets frozen by judge-SEC,'' please read headline as ``AremisSoft ex-execs' assets frozen by judge-SEC.''

In first paragraph, please read ``.... froze the bank and broker assets of AremisSoft's former top executives....'' instead of ``...froze the bank and broker assets of AremisSoft ...''

In second paragraph, please read ``.... froze the assets of....'' instead of ``...also froze the assets of...''

(Corrects to show assets of company were not frozen. Also adds clarification from company lawyer in paragraph 3 and adds comment from company executive in paragraph 4).

A corrected version follows.

WASHINGTON, Oct 4 (Reuters) - A federal judge froze the bank and broker assets of AremisSoft's former top executives on Thursday, at the request of U.S. regulators who alleged the software maker overstated revenues and inflated the value of its customer contracts and acquisitions.

The Southern District of New York Court froze the assets of AremisSoft's former chairmen and chief executive officers Roys Poyiadjis and Lycourgos Kyprianou after the Securities and Exchange Commission alleged the men engaged in massive insider trading.

AremisSoft's assets were not frozen, the company's lawyer and chief executive officer said.

``The company is cooperating with the Securities and Exchange Commission and the U.S. Attorney's office in its investigation,'' George Ellis, AremisSoft's current CEO, told Reuters.

The New York-based company, which has offices in London, Cyprus and India, misled investors two years ago when it announced a $37.5-million agreement to automate Bulgaria's national health care system, the SEC alleged in its complaint.

The value of that contract was no more than $3.7 million, the regulator said.

The firm's Cyprus-headquartered Emerging Markets group, reported roughly $89 million of the total $120 million AremisSoft made in 2000 sales revenue.

But most of that $89 million were from sales that never took place, the SEC alleged, adding that AremisSoft also falsified its book and records to hide the fact that it was not getting cash.

Poyiadjis and Kyprianou also engaged in ``massive insider trading during the period of reported fraud'', the SEC said, selling millions of shares through offshore facilities.

The two men made around several hundred million dollars from those sales, SEC's Assistant Director for Enforcement Richard Sauer said.

The court order directs the men to pay back the money made from stock sales. The amount has yet to be determined.

The attorney for Poyiadjis declined to comment on Thursday's SEC complaint. Kyprianou does not have legal representation, the SEC said.

The New York-based company was delisted from the Nasdaq in August and now trades on the pink sheets. It last traded at 69 cents.
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