“It’s in their hands now,” said Anthony T. The SEC staff recommendation of enforcement action against Aura must be approved by SEC commissioners.
#AURA COMPANY SERIES#
But the monitors were simply being resold by Aura, which had purchased them overseas.Īura concedes that the transactions “generated little or no profit” even though they sharply boosted reported sales.Īura said in the 10-K filing that the SEC staff claims that “in addition to disclosing that MCDP was a significant customer of Aura’s, Aura should have disclosed more details about the nature of the transactions.”Īura contends that the sales to MCDP were “part of a long-range strategy to develop relationships with manufacturers, suppliers and distributors for a series of computer-related applications that Aura has since introduced into the market.” MCDP has purchased large numbers of computer monitors from Aura, swelling Aura’s sales in fiscal 1993 and ’94. * Violations of reporting, books and records provisions related to Aura’s business with Micro Computer Distribution Power, a once-significant Aura customer. Aura recorded revenue in a deal with Jory, but subsequently revised its financial statements to exclude most of the Jory revenue from reported results. * Violations of anti-fraud provisions of securities laws, and violations of provisions regarding reporting, books and records, related to Aura’s 1993 reporting of its business arrangement with John Jory Corp., a construction firm. In the 10-K filing, Aura said SEC staff intends to allege:
The SEC has been investigating Aura since 1992. The company’s total shares outstanding have ballooned to 62.9 million as of May 30, up from 27 million in 1993.
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