To: Arcane Lore who wrote (663) | 10/9/2001 7:53:41 AM | From: long-gone | | | 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 ...'' ADVERTISEMENT
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.
biz.yahoo.com |
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To: ACAN who wrote (665) | 12/13/2001 12:07:19 AM | From: JohnD | | | I'm sure there are some people who care. After all, the stock got so badly beaten, it is not worth selling unless you really need a loss this year. I suspect most have other stocks to sell, while we wait to see where this mess ends up, for the next few quarters~ FWIW, JohnD-still holding AREM, in my IRA ;<) |
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To: ACAN who wrote (667) | 12/13/2001 12:33:19 AM | From: JohnD | | | It has a lot of "panning" to do. This stock is (was) the bulk of my IRA. I see no viable option but to hang in there.<g> Best of luck, JohnD |
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To: benchpress550 who wrote (615) | 1/29/2002 8:08:49 PM | From: Sir Auric Goldfinger | | | I know that you like to keep up on your largest holding, so I thought I'd pass this on. You do own a 100 lot of AhRheemYaSoft doncha?!?:
"AremisSoft Fires Auditor PKF After Reports Disavowed (Update2) 2002-01-29 18:22 (New York)
AremisSoft Fires Auditor PKF After Reports Disavowed (Update2)
(Adds AremisSoft seeking new auditor in fifth paragraph.)
Washington, Jan. 29 (Bloomberg) -- AremisSoft Corp. fired its outside auditor, PKF, a month after the firm disavowed its audit reports on the business-management software maker's financial statements because of accounting questions. Minneapolis-based AremisSoft has said it expects to restate past results because it can't confirm $90 million of revenue reported last year by its Emerging Markets Group. PKF, formerly known as Pannell Kerr Forster, said last month its reports affirming AremisSoft's 1999 and 2000 financial statements shouldn't be relied upon by investors. The auditor's disavowal was one of a series of blows against the company, beset by investor lawsuits and government investigations. AremisSoft also announced 150 job cuts last month, and its shares have fallen to 83 cents, down 3 cents today. AremisSoft's board, on the recommendation of its audit committee, ``determined to dismiss'' PKF Jan. 23, the company said in a filing with the Securities and Exchange Commission. No replacement was named in the filing. A spokeswoman said the company is still conducting a search. She declined to comment further about PKF's dismissal. Aside from the disavowal, ``to the knowledge of current management of AremisSoft, there were no disagreements'' with PKF that would have resulted in an adverse audit report the past two years, the filing said. The company is requesting PKF to furnish a letter affirming that statement. AremisSoft has dismissed PKF at least once before. While preparing to go public, the company replaced the firm with Ernst & Young in May 1998. Then AremisSoft hired back PKF in December the same year, before completing its initial public offering in April 1999, according to SEC filings. While AremisSoft didn't name a new auditor in today's filing, the company hired Deloitte & Touche LLP forensic accountants to assist in its internal investigation of the overseas operations beginning last August, according to the filing. The subjects of the probe include operations in Cyprus and a contract with the Bulgarian national health system, for which PKF was able to confirm only $1.7 million of $7.1 million in revenue recognized by AremisSoft. Officials at London-based PKF couldn't be reached for comment.
--John Rega in Washington (202) 624-1907 or jrega@bloomberg.net Editor: Arthur
Story Illustration: To chart the performance of AremisSoft shares against broader markets: {AREM US <Equity> COMP <GO>}.
Company News: AREM US <Equity> CN 5091Z US <Equity> CN 5092Z US <Equity> CN |
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To: benchpress550 who wrote (670) | 3/25/2002 8:25:36 PM | From: Sir Auric Goldfinger | | | AremisSoft Ex-Chairman Poyiadjis Indicted for Fraud. New York, March 25 (Bloomberg) -- AremisSoft Corp.'s former chairman and co-chief executive, Roys Poyiadjis, has been indicted for fraud in a scheme that cost investors at least $300 million,authorities said. Federal prosecutors unsealed an indictment last month against Poyiadjis, a British citizen now living in Cyprus, though they didn't publicly announce it. The charge came to light in a case filed Friday in which prosecutors say they are seeking to seize $175 million in illicit profits diverted to two overseas banks by Poyiadjis and co-CEO Lycourgos Kyprianou. AremisSoft filed for bankruptcy on March 15. The maker of business-management software has said it can't substantiate $90 million in revenue booked by its Emerging Markets Group. In October, the Securities and Exchange Commission charged Poyiadjis and Kyprianou with making more than $300 million in secret stock sales while AremisSoft was reporting inflated revenue. ``While the public was being misled about the true nature of AremisSoft and its revenues, Poyiadjis and Kyprianou capitalized on that fraud by secretly selling millions of AremisSoft shares through nominee corporations and offshore accounts,'' prosecutors said in a civil forfeiture complaint. U.S. prosecutors are seeking to seize funds held at Fleming Bank and Standard Bank, both in the Isle of Man.
Inflated Revenue
A spokeswoman for Minneapolis-based AremisSoft didn't have an immediate comment. Shares in the company, which in early 2001 was worth more than $1 billion, rose one cent to 51 cents in afternoon trading. The company's stock is now worth $20 million, though under a proposed reorganization, all shares will be cancelled, according to a filing with the SEC. The SEC says Poyiadjis made about $175 million in illegal profits from trading company stock in 2000, and Kyprianou made at least $125 million. The two sold AremisSoft stock through offshore entities after the company inflated its revenue, which drove up the stock price, prosecutors said. Prosecutors say AremisSoft inflated revenue by ``grossly'' overstating the value of its contracts, or even making them up, and by exaggerating the size of several acquisitions. In 1999, for instance, the company, then based in Westmont, New Jersey, announced that it obtained a $37.5 million health computer contract with the National Health Insurance Fund of Bulgaria, authorities said. The Bulgarian government said last year that the contract's value was actually $3.9 million. Poyiadjis, who once lived in New York, hasn't responded to the indictment, according to court records. There's no indication in records that Kyprianou has been similarly charged. A spokesman for U.S. Attorney James Comey didn't have an immediate comment. In the forfeiture case, prosecutors say they've traced $175 million of the ``hundreds of millions'' that Poyiadjis and Kyprianou ``stole'' to four accounts at the two banks. Prosecutors want U.S. District Judge Thomas Griesa to authorize seizure of the money.
--David Glovin in U.S. District Court in New York at (212) 732- 9245, or at dglovin@bloomberg.net, through the New York newsroom (212) 893-3665. Editor: Pinsley
Story illustration: For graph of AremisSoft stock, type {AREM US <Equity> GPO <GO>}
AREM US <Equity> CN
NI Codes NI IBS NI FRAUD NI UK NI CRIME NI JUS NI INDIA NI SEC NI SCR NI LAW NI MN NI US NI CYPRUS NI NYC NI NJ |
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To: Arcane Lore who wrote (663) | 6/25/2002 10:48:07 AM | From: Arcane Lore | | | From today's online NY Times:
3 From Software Maker Are Indicted
By THE ASSOCIATED PRESS
Three former executives with the software maker AremisSoft Corporation were charged yesterday with insider trading, money laundering and accounting fraud.
A securities fraud indictment filed in federal court in Manhattan accused the company's former co-chief executives, Lycourgos Kyprianou and Roys Poyiadjis, and its former president, M. C. Mathews, of conspiring to bilk shareholders out of hundreds of millions of dollars.
Mr. Kyprianou, 47, and Mr. Poyiadjis, 36, who would each face up to 20 years in prison if convicted, remain free in Cyprus, prosecutors said. Mr. Mathews, who would face up to 10 years, is free in India.
From 1999 through 2001, the three men reportedly inflated the company's stock by fabricating $90 million in fictitious earnings and announcing multimillion-dollar acquisitions of sham software companies. The plan resulted in $250 million in insider-trading profits, which were laundered through offshore bank accounts, court papers said.
Authorities said they had seized about $175 million of the illicit proceeds in bank accounts in the Isle of Man.
AremisSoft, a maker of software and Internet solutions for the manufacturing, hospitality, health care and construction industries, filed earlier this year for bankruptcy protection amid a Securities and Exchange Commission investigation and moved its headquarters from New Jersey to Minnesota.
Copyright 2002 The New York Times Company
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