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The Kurzweil Applied Intelligence Alumni Newsletter


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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