The Securities and Exchange Commission announced that on March 28, 2006, the Honorable R. David Proctor, United States District Judge for the Northern District of Alabama, entered a Final Judgment As To Defendant Scott Wynne, enjoining him from future violations of the Securities Exchange Act.
The Commission's Complaint, filed on May 21, 2004, alleged various fraudulent practices in connection with the financial statements of Just for Feet, Inc. The Complaint alleged that Wynne, a vice president at Just for Feet, and others, among other things, recorded on Just for Feet's books unearned receivables and failed to create an adequate reserve for excess or obsolete inventory.
The overstatement of income and assets resulting from this misconduct was reflected on Just for Feet's financial statements included in its Form 10-K filed for fiscal year 1998, Forms 10-Q filed for the first and second quarters of fiscal year 1999, and in its registration statements on Forms S-8 and S-4 filed in May and June of 1999, respectively.
Wynne consented to the entry of the judgment without admitting or denying the allegations of the Commission's Complaint. The court ordered a civil penalty in the amount of $25,000, and prohibited Wynne from acting as an officer or director of any issuer that has a class of registered securities for a period of six years.
