119.By reason of the foregoing, Stockman, Stepp, Jones, Cosgrove, McCallum, Barnaba, Gougherty, Galante, and Williams violated Rule 13b2-1 and unless restrained will continue to violate that rule.
Violations of Exchange Act Rule 13b2-2
(Stockman, Stepp, Jones, Cosgrove, McCallum,
Barnaba, and Galante)
120.Paragraphs 1-72 are incorporated herein with the same force and
effect as if set out in full.
121.Exchange Act Rule 13b2-2 [17 C.F.R. § 240.13b2-2] provides, , that no officer or director of an issuer, and no person acting under the direction of such officer or director, may directly or indirectly take any action to mislead an independent public or certified public accountant engaged in an audit or review of the financial statements of that issuer if such statements are required to be filed with the Commission and the person knew or should have known that such action, if successful, could result in rendering the issuer’s financial statements materially misleading.
122.As described in Paragraphs 1-6, 20-48, and 54-72, Stockman, Stepp, Jones, Cosgrove, McCallum, Barnaba, Gougherty, and Galante took actions to mislead C&A's public accountants in the performance of audits and reviews of financial statements required to be filed by C&A with the Commission, and knew or should have known that such actions could result in rendering these financial statements materially misleading.