CityBusiness is a newpaper published in New Orleans.

CityBusiness

February 12, 2008

OCA director nets 10-year ban, $100,000 fine in fraud case

by Greg LaRose News Editor

 

NEW ORLEANS — The former chief financial officer of the Orthodontic Centers of America will pay a $100,000 fine to the Securities and Exchange Commission to settle fraud charges against him.

The SEC filed a complaint Feb. 7 in U.S. District Court for the Eastern District of Louisiana against Bartholomew Palmisano Jr. of Metairie, alleging he recorded 18 fraudulent journal entries on OCA’s general ledger from 1998 through 2001.

OCA, a dental practice management firm, has since changed its corporate identity to OrthoSynetics Inc.

SEC investigators claimed Palmisano's fraudulent entries during 12 different quarters had the cumulative effect of creating approximately $71 million of fictitious revenue. The fictitious revenue was always at least the amount OCA needed to meet Wall Street consensus earnings per share expectations, according to the SEC.

Investigators said Palmisano tried to cover up his fraud in May 2005 by providing false information and documents during an inquiry by OCA’s independent auditors concerning one of the fraudulent journal entries.

Palmisano, without admitting or denying the allegations of the SEC complaint, consented to a proposed final judgment. He is barred from acting as an officer or director of a public company for 10 years. The settlement is subject to federal court approval.

 

 

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