Defendant Name: Symmetry Medical, Inc.

Defendant Type: Public Company
SIC Code: 3842
CUSIP: 87154620

Initial Case Details

Legal Case Name In the Matter of Symmetry Medical Inc. and Fred L. Hite
First Document Date 30-Jan-2012
Initial Filing Format Administrative Action
File Number 3-14723
Allegation Type Issuer Reporting and Disclosure
AAER 3358

Violations Alleged

Exchange Act
Rule 12b-20
Sec 13(a)
Sec 13(b)(2)(A)
Sec 13(b)(2)(B)
Financial reporting, books-and-records and internal controls violations.
Additionally, Fred L. Hite is alleged to have caused Symmetry Medical, Inc.'s violation of Sec 13(b)(2)(B) of the Exchange Act.


First Resolution Date 30-Jan-2012

Related Documents:

34-66268 30-Jan-2012 Administrative Proceeding
Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order and a Civil Penalty
On January 30, 2012, the Commission accepted an offer of settlement submitted by Symmetry and imposed a cease-and-desist order and a civil penalty against Symmetry. The SEC found that in April 2008, "Symmetry restated its financial statements for its 2005 and 2006 fiscal years and its first and second quarters of fiscal 2007, along with selected financial data for its 2003-2006 fiscal years" on account of misstatements made by one of its subsidiaries. The SEC found that Symmetry Medical Sheffield LTD, f/k/a Thornton had "materially overstated [its] revenues and assets, materially understated its expenses, and falsified corporate books and records." As a result, the financial statements included in Symmetry's Form 10-K for 2004, 2005 and 2006 fiscal years, as well as its Form 10-Q for the first and second quarters of the 2007 fiscal year were "materially false and misleading and did not comply with [GAAP] . . . . achieved primarily by improperly and prematurely recognizing revenue, improperly capitalizing expenses, overvaluing inventory, and understating costs of goods sold." Finally, the SEC found that Symmetry failed to implement and maintain "adequate internal controls over financial reporting that were sufficient to provide reasonable assurance" that the statements were made in accordance with GAAP.
2012-21 30-Jan-2012 Press Release--Administrative Proceeding
SEC Charges Former Executives and Accountants With Fraud at British Subsidiary of Medical Devices Company; SEC Obtains Settlements With CEO and CFO to Clawback Bonuses Under Sarbanes-Oxley Section 304
On January 30, 2012, the SEC announced that it charged four former senior executives and accountants at Thornton Precision Components ("TPC"), the British subsidiary of NYSE-listed manufacturer of medical devices and aerospace products Symmetry Medical Inc. ("Symmetry"), for their roles in an accounting fraud that was so pervasive that it distorted the financial statements of the parent company. The SEC also instituted separate settled administrative proceedings against Symmetry and its CFO Fred L. Hite, which found that Hite failed to provide an internal audit status report concerning TPC to Symmetry's Audit Committee in July 2006. Although the internal audit status report had not uncovered the fraud at TPC, it did raise the potential for deeper problems there. Hite also failed to reimburse Symmetry for bonuses, other compensation, and Symmetry stock-sale proceeds he received while the fraud occurred at the subsidiary (as required by SOX Section 304). Hite agreed to pay a $25,000 penalty and reimburse $185,000 to Symmetry. For its part, Symmetry agreed to a cease-and-desist order against future financial reporting, books-and-records and internal controls violations.

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