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The Kurzweil Applied Intelligence Alumni Newsletter
DEFENDANTS BERNARD BRADSTREET, THOMAS CAMPBELL AND DEBRA MURRAY AGREE TO
SETTLE SEC INJUNCTIVE ACTION
On September 25, defendants Bernard F. Bradstreet (Bradstreet),
Thomas E. Campbell (Campbell) and Debra J. Murray (Murray), former
managers of Kurzweil Applied Intelligence, Inc. (Kurzweil),
consented, without admitting or denying the allegations of the
Security Exchange
Commission's complaint, to the entry of a final judgment enjoining
each of them from violations of Section 17(a) of the Securities Act
and Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5,
13b2-1 and 13b2-2, barring each of them from serving as an officer
or director of any public company, waiving disgorgement by
Bradstreet and Campbell, and not assessing penalties against
Bradstreet, Campbell and Murray, based on their demonstrated
inability to pay. The consents have been submitted to the court for
approval. The Commission's litigation is continuing as to a fourth
defendant, David R. Earl. The Commission's complaint alleged that,
from at least January 1992 through May 1994, the defendants engaged
in a fraudulent revenue recognition scheme which inflated Kurzweil's
revenues and earnings as reported by the company in financial
statements filed with the Commission. [SEC v. Bradstreet, et al.,
USDC for the District of Massachusetts, Civ. Action No. 95-11647-
DPW] (LR-15069; AAE Rel. 824)
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September 26, 1996