He also signed each of the materially false and misleading quarterly reports at issue. During the relevant period, STI's accounting decisions and practices were made and controlled by Schick. He was also the President of the Company from 1992 until 1999. Schick has been STI's CEO and Chairman since he founded the Company in 1992.STI's primary products during the relevant period were the CDR computed dental radiography dental imaging system that produces dental x-ray images on a computer monitor rather than on conventional x-ray film, and the accuDEXA bone densitometer that assesses bone mineral density and fracture risk. Since then, STI's common stock has traded on the OTC Bulletin Board.
STI is a Delaware company whose common stock traded on the NASDAQ from STI's initial public offering in July 1997 until September 1999 when it was delisted, and was quoted in the National Quotation Bureau's "pink sheets" until January 2002.The Complaint further alleges as to the defendants: The Complaint alleges that Schick and Levine knew of or recklessly disregarded the fraudulent practices and deception, and were responsible for STI's improper recording and reporting of the inflated revenue and income. As a result of the fraud, which led to two restatements, STI materially overstated its reported revenue for the June, September and December quarters of 1998. The defendants also failed to account properly for massive product returns and to establish sufficient sales reserves.
#David schick trial#
The Complaint alleges that STI improperly booked and reported revenue from sales practices including end of quarter shipments to warehouses, consignment sales, and merchandise shipped to customers pursuant to two loaner programs where the customer accepted the product on a trial basis with no obligation to purchase the product. The Commission's complaint (the "Complaint") charges the defendants with fraud, and books and records and reporting violations for artificially inflating STI's reported revenue for the first three quarters of STI's fiscal year 1999, and then covering up the fraud by lying to STI's outside auditors. Schick ("Schick"), STI's founder, CEO and Chairman and Fred Levine ("Levine"), STI's former Director and Vice President of Sales and Marketing. ("STI"), a manufacturer of dental and medical devices in Long Island City, New York David B. The Commission announced today that on Novemit filed an enforcement action in the United States District Court for the Eastern District of New York against Schick Technologies, Inc. 5766-CBA (E.D.N.Y.) SEC FILES INJUNCTIVE ACTION AGAINST SCHICK TECHNOLOGIES, INC., DAVID SCHICK AND FRED LEVINE FOR ACCOUNTING FRAUD AND COVER UP 1915 / NovemSecurities and Exchange Commission v. 18464 / NovemAccounting and Auditing Enforcement SECURITIES AND EXCHANGE COMMISSION Litigation Release No.
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