SEC Reinstates Richard Hylland, CPA to Practice Before the Commission

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On June 11, 2014, the Securities and Exchange Commission (the “SEC”) announced that it had reinstated Richard Hylland, CPA to practice before the SEC.

On July 16, 2007, Richard Hylland, CPA (“Hylland”) was suspended from appearing or practicing before the Commission as an accountant as a result of settled public administrative proceedings instituted by the Commission against Hylland pursuant to Rule 102(e)(3)(i) of the Commission’s Rules of Practice.

The June 11, 2014 order was issued in response to Hylland’s application for reinstatement to appear and practice before the Commission as an accountant responsible for the preparation or review of financial statements required to be filed with the Commission.

The Commission found that Hylland had been permanently enjoined by a United States District Court from future violations of Section 17(a) of the Securities Act of 1933, and Sections 10(b) and 13(b)(5) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rules 10b-5 and 13b2-1 thereunder, and aiding and abetting violations of Sections 13(a), 13(b)(2)(A) and 13(b)(2)(B) of the Exchange Act and Rules 12b-20, 13a-11 and 13a-13 thereunder.

In its original complaint in the injunctive action, the SEC charged, among other things, that during 2002, Hylland, in his role as president, chief operating officer and member of the board of directors of NorthWestern Corporation (“NorthWestern”), misled investors about the operating results and financial condition of NorthWestern and its operating segments.  The Commission’s Complaint further alleged that Respondent’s false and misleading statements facilitated more than $800 million in securities offerings by NorthWestern in September and October 2002, including an $87.5 million equity offering that raised badly needed operating capital for the company.

In his capacity as a preparer or reviewer, or as a person responsible for the preparation or review, of financial statements of a public company to be filed with the Commission, Hylland attests that he will undertake to have his work reviewed by the independent audit committee of any company for which he works, or in some other manner acceptable to the Commission, while practicing before the Commission in this capacity.  Hylland is not, at this time, seeking to appear or practice before the Commission as an independent accountant.  If he should wish to resume appearing and practicing before the Commission as an independent accountant, he will be required to submit an application to the Commission showing that he has complied and will comply with the terms of the original suspension order in this regard.  Therefore, Hylland’s suspension from practice before the Commission as an independent accountant continues in effect until the Commission determines that a sufficient showing has been made in this regard in accordance with the terms of the original suspension order.

Rule 102(e)(5) of the SEC’s Rules of Practice governs applications for reinstatement, and provides that theSEC may reinstate the privilege to appear and practice before the Commission “for good cause shown.”  This “good cause” determination is necessarily highly fact specific.  The Commission determined based upon the evidence presented that Hylland complied with the terms of the July 16, 2007 order suspending him from appearing or practicing before the Commission as an accountant, that no information has come to the attention of the Commission relating to his character, integrity, professional conduct or qualifications to practice before the Commission that would be a basis for adverse action against him pursuant to Rule 102(e) of the Commission’s Rules of Practice, and that Hylland, by undertaking to have his work reviewed by the independent audit committee of any company for which he works, or in some other manner acceptable to the Commission, in his practice before the Commission as a preparer or reviewer of financial statements required to be  filed with the Commission, has shown good cause for reinstatement.  Therefore, it was accordingly,ORDERED pursuant to Rule 102(e)(5)(i) of the Commission’s Rules of Practice that Richard R. Hylland, CPA is reinstated to appear and practice before the SEC as an accountant responsible for the preparation or review of financial statements required to be filed with the Commission.

For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton, Florida, (561) 416-8956, or [email protected] or visit www.securitieslawyer101.com.  This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship.  For more information about going public and the rules and regulations affecting the use of Rule 144, Form 8K, crowdfunding, FINRA Rule 6490, Rule 506 private placement offerings and memorandums, Regulation A, Reverse Merger transactions,Form S-1 , IPO’s, OTC Pink Sheet listings, Form 10 and OTC Markets disclosure requirements, DTC Chills, Global Locks, reverse mergers, public shells, direct public offerings and direct public offerings please contact Hamilton and Associates at (561) 416-8956 or [email protected].  Please note that the prior results discussed herein do not guarantee similar outcomes.

Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855
www.SecuritiesLawyer101.com