Jacob Adoni and Victor Douenias

UNITED STATES SEURITIES AND EXCHANGE COMMISSION

Litigation Release No. 16767 / October 16, 2000

Accounting and Auditing Enforcement
Release No. 1335 / October 16, 2000

SECURITIES AND EXCHANGE COMMISSION v. JACOB ADONI AND VICTOR DOUENIAS, Case No. 97-350 (JAG)(D.N.J.)

The Securities and Exhange Commission today announced the settlement of a federal court action pending since 1997, against Victor Douenias, former shipping manager for The Simone Group, Inc. (Simone), then a NASDAQ shoe manufacturer.

In its complaint, the Commission alleged that Douenias maintained invoices for goods that had not been shipped to customers in a separate file, thus circumventing Simone's internal accounting controls and leading, directly or indirectly, to the falsification of Simone's books and records. Without admitting or denying the allegations of the Commission's complaint, Douenias has agreed to pay $5,000 pursuant to Section 21(d)(3) of the Securities Exchange Act of 1934 (Exchange Act).

At the same time, the Commission issued a settled order pursuant to Section 21C of the Exchange Act against Douenias, requiring him to cease and desist from committing or causing any violations or future violations of Section 13(b)(5) of the Exchange Act and Rule 13b2-1 thereunder. (See Exchange Act Release No. 34-43445/AAER No.1334 ).