Date: June 2, 2011
Source: Securities and Exchange Commission
Nearly twelve years after the alleged activity took place, the Securities and Exchange Commission (SEC) settled its civil action against former Waste Management Chief Accounting Officer Bruce E. Snyder. The SEC's complaint, which was filed in 2003, alleged that Snyder, among other things, prepared, reviewed, and signed a materially false or misleading Form 10-Q that Waste Management, Inc. filed with the Commission for the first quarter of its fiscal year ended December 31, 1999. Snyder, without admitting or denying the allegations in the complaint, consented to an order permanently enjoining him from aiding and abetting future securities violations.
At the same time it filed its 2003 complaint against Snyder, the SEC settled a case against other Waste Management officers Rodney R. Proto and Earl E. DeFrates which accused them of insider trading and making false statements about company financial performance. Proto, who had been President and COO, and DeFrates, who had been CFO, had each sold company stock in May and June of 1999 before the public was made aware that the previous first quarter's financial results contained millions in non-recurring revenue. Proto agreed to pay a $3.7 million penalty. DeFrates agreed to pay $482 thousand. Both were barred from serving as an officer or director of a public company for a period of five years.
June 2, 2011
SECURITIES AND EXCHANGE COMMISSION
LITIGATION RELEASE No. 21984
U.S. Securities and Exchange Commission v. Bruce E. Snyder, Jr., Civil Action No. 03 CV 4658 (S.D.Tx.) (February 1, 2006)
SEC SETTLES CHARGES WITH BRUCE E. SNYDER, Jr., FORMER CHIEF ACCOUNTING OFFICER OF WASTE MANAGEMENT, INC.
The Securities and Exchange Commission ("Commission") announced today that it settled its civil injunctive action previously filed against Bruce E. Snyder, Jr. ("Snyder"), in the United States District Court for the Southern District of Texas. Snyder formerly was Chief Accounting Officer of Waste Management, Inc. ("WMI"). The complaint previously filed in this matter alleged that Snyder, among other things, prepared, reviewed, and signed a materially false or misleading Form 10-Q that Waste Management, Inc. filed with the Commission for the first quarter of its fiscal year ended December 31, 1999.
Snyder, without admitting or denying the allegations in the Commission's Complaint, consented to an order permanently enjoining him from aiding and abetting violations of Section 13(a) of the Securities Exchange Act of 1934 ("Exchange Act"), and Exchange Act Rules 12b-20 and 13a-13, the reporting provisions of the federal securities laws.
See Litigation Release NO. 18422 / October 22, 2003.
The SEC's complaint in SEC v. Bruce E. Snyder, Jr. can be found on the SEC's web site at: www.sec.gov/litigation/complaints/comp18422a.htm.