[Federal Register Volume 70, Number 97 (Friday, May 20, 2005)]
[Notices]
[Pages 29370-29371]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-10173]


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SECURITIES AND EXCHANGE COMMISSION


Sunshine Act Meetings

    Notice is hereby given, pursuant to the provisions of the 
Government in the Sunshine Act, Pub. L. 94-409, that the Securities and 
Exchange Commission will hold the following meetings during the week of 
May 23, 2005:
    An open meeting will be held on Monday, May 23, 2005, at 10 a.m., 
in Room 1C30, the William O. Douglas Meeting Room, and a closed meeting 
will be held on Wednesday, May 25, 2005 at 2 p.m.
    Commissioners, Counsel to the Commissioners, the Secretary to the 
Commission, and recording secretaries will attend the closed meeting. 
Certain staff members who have an interest in the matters may also be 
present.
    The General Counsel of the Commission, or his designee, has 
certified that, in his opinion, one or more of the exemptions set forth 
in 5 U.S.C. 552b(c)(3), (5), (7), (9)(B), and (10) and 17 CFR 
200.402(a)(3), (5), (7), 9(ii) and (10), permit consideration of the 
scheduled matters at the closed meeting.
    Commissioner Goldschmid, as duty officer, voted to consider the 
items listed for the closed meeting in closed session, and that no 
earlier notice thereof was possible.
    The subject matter of the open meeting scheduled for Monday, May 
23, 2005, will be:


[[Page 29371]]


    The Commission will hear oral argument on an appeal by Rita J. 
McConville from the decision of an administrative law judge. The 
administrative law judge found that McConville, formerly the chief 
financial officer of Akorn, Inc. (``Akorn''), had significant 
responsibility for the financial statements in the Form 10-K for the 
year ended December 31, 2000 (the ``2000 Form 10-K'') filed by 
Akorn, which materially inflated Akorn's accounts receivable, net 
sales, and assets; caused Akorn to maintain inaccurate books and 
records; and falsely assured Akorn's auditors that the financial 
statements in the 2000 Form 10-K complied with Generally Accepted 
Accounting Principles and that she did not know of any events that 
would materially impact those financial statements. In so doing, the 
law judge found, McConville violated Sections 10(b) and 13(b)(5) of 
the Securities Exchange Act of 1934 and Rules 10b-5, 13b2-1 and 
13b2-2 thereunder, and caused Akorn to violate Sections 13(a) and 
13(b)(2) of the Exchange Act and Rules 12b-20 and 13a-1 thereunder. 
The law judge ordered McConville to cease and desist from violating 
and causing violations of these provisions, and to pay disgorgement 
in the amount of $115,858, plus prejudgment interest.

    Among the issues likely to be argued are:
    1. Whether McConville's involvement in the preparation and filing 
of the 2000 Form 10-K was sufficient to provide a basis for liability;
    2. Whether McConville knew that Akorn did not have a system of 
internal accounting controls for its accounts receivable necessary for 
the preparation of accurate financial statements and knowingly failed 
to implement such a system;
    3. Whether the Order Instituting Proceedings gave McConville 
adequate notice of the claims lodged against her and the grounds on 
which those claims allegedly rested;
    4. Whether a cease-and-desist order against McConville is in the 
public interest; and
    5. Whether disgorgement should be ordered, and if so, in what 
amount.
    The subject matter of the closed meeting scheduled for Wednesday, 
May 25, 2005, will be:
    Formal orders of investigations;
    Institution and settlement of injunctive actions; and
    Institution and settlement of administrative proceedings of an 
enforcement nature.
    At times, changes in Commission priorities require alterations in 
the scheduling of meeting items.
    For further information and to ascertain what, if any, matters have 
been added, deleted or postponed, please contact: The Office of the 
Secretary at (202) 942-7070.

    Dated: May 17, 2005.
Jonathan G. Katz,
Secretary.
[FR Doc. 05-10173 Filed 5-17-05; 4:20 pm]
BILLING CODE 8010-01-P