Apogee Technology, Inc., David B. Meyers and Annette Jaynes by backgroundnow

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           Case1:09-cv-10826Document             Filed05/19/2009 Page1 of25




                             UNITED STATESDISTRICT COURT

                              DISTRICT OF MASSACIIUSETTS




SECURITIES AND EXCIIANGE COMMISSION,

                                   Plaintiff,

                    v.                                        Civil Action No.

APOGEE TECHNOLOGY, INC.,
DAVID B. MEYf,RS' and
ANNETTE JAYNES,

                         .         Defendants.



                                       COMPLAINT

      Plaintiff Securitiesand ExchangeCommission(the "Commission") allegesthat:

                                        SUMMARY

      1.       During at leastJune2003 through December2004 ("the relevantperiod"),

DefendantsApogoeTechnology,Inc. ("Apogee"), a publicly tradedcompanybasedin

            David B. Meyers ('Meyers'), Apogee's former Chief OperatingOfficer, and
Massachusetts,

                                                             purposes("Jaynes'),
AnnetteBen-Menachem, ho usesthe nameArmette Jaynesfor business
                   w

Apogee'sController, engagedin a schemeto inflate the revenueand receivablesreportedin

Apogee'sfinancial statementsfiled with the Commission. During the relevantperiod,Meyers

approvedseveraltransactions                                which resultedin Apogee
                           with certainofApogee's customers,

impropetly recognizingrevenueeventhoughrhe transactionterms did not comply with the

company's n ue recogdtionpoliciesor Generally
        rev€                                       Accounting
                                            Accepted                  ("GAAP').
                                                             Principles

Apogee'srecoglutionofrevenue ftom thesetransactions not comportwith GAAP or
                                                   did

Apogee'saccountingpolicies because,                               includedprovisions
                                  amongotherthings,the transactions
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that permittedApogee'sdistributorsto return the products,foregopaymentuntil they had sold

the productsto their end users,or exchangepartsfor substituteparts. As part ofthe schemeand

with knowledgeof certain factsthatnegatedApogee's ability to recognizerevenuefrom tJre

tansactions, Jaynesimproperly recordedrevenueon Apogee'sbooks and recordsand

           preparedApogee's financial statements containedthe materially misstated
subsequently                                   tlrat

revenueand receivablesfigues.

       2.       As a result,Apogee'sForms10-QSBfor the quarters
                                                              endedJune30' 2003,

                                                       materialmisstatements'
                                       30,2004,contained
March 31, 2004,June30,2004,and September

Apogee'sForm 10-KSBfor the yearended       31,                material
                                    December 2003,alsocontained

                                                                to  in
misstatements.Apogeeoverstated revenueby betweenapproximately7Yo 45%o these
                              its

                            revenue amounts
quarters improperlyrecognized
       and                        in                          to
                                          rangingftom $232,000 $1,416,927

per quarter.

       3.                      the
                Unlesse.njoined, Defendantswill continueto engagein acts,practices,and

coursesofbusiness as set forth in this Complaintor in acts,practices,and coursesofbusiness of

similarobjectandpqpose.

       4.       Accordingly, the Commissionseeks:(i) entry of permanentir{rmctions

prohibiting eachDefendantfrom further violations of the relevantprovisions of the Securities

                                                                  Act"); (ii)
Act of 1933('securitiesAcf) andSecurities xchange of 1934( Exchange
                                        E       Act

disgorgement il1-gottengains ftom saleof stock during the relevantperiod from Defendant
           of

Meyers;(iii) the imposition of civil monetarypenaltiesagainstDefendantsMeyers and Jaynes;

(iv) entry of an order barring Meyersfrom servingas an officer or director of a public company;

and (v) such other equitablerelief asthe Court deemsjust andappropriate.
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                                      JURISDICTION

       5.       This Cout hasjwisdiction overthis actionunderSection ofthe Securities
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Act [15 U.S.C.$ 77vl and Sectio 2l and27 ofthe Exchange [15 U.S.C.$$ 78u and78aa]
                              ns                      Act

Additionally, the actsand practicesallegedherein occunedprimarily within the District of

Massachusetts.

       6.       The 
								
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