Former Sales Chief At Defunct Kendall Settles SEC Charges
The Wall Street Journal, November 13, 1996

WASHINGTON - A former sales executive at the defunct Kendall Square Research Corp. settled charges brought by the Securities and Exchange Commission for his role in allegedly inflating the company's sales and profits in 1992 and 1993

According to the SEC complaint filed in April, Peter Appleton Jones, Kendall Square's head of sales, sold stock while "knowing material nonpublic information" in August 1993. Shortly thereafter, Kendall disclosed that its accountants questioned whether it had accurately booked as sales certain computer orders. Shares of the supercomputer maker stated falling from a high of $24 apiece until they became worthless last year.

In settling the charges without admitting or denying worngdoing, Mr. Jones agreed to a permanent injunction and a 10-year ban from serving as an officer or director of a public company. Mr. Jones was also ordered to give up $321,526 in profits, but a federal judge lowered the amount to $40,000 based on his limited finances, the SEC said.

Earlier this year, two top executives of the former company -- Henry Burkhardt III, who was president and chief executive officer, and Karl G. Wassmann III, former chief financial officer -- settled similar charges by the SEC.

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