U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 19277 / June 21, 2005

SEC v. Richard Marks, Civil Action No. CV 03-9196 CBM (MCx) (C.D. Cal.)

RICHARD MARKS OF MOTORCAR PARTS SENTENCED TO PRISON

On June 17, 2005, the Honorable A. Howard Matz, U.S. District Judge for the Central District of California, sentenced Richard Marks to nine months in federal prison, nine months home detention, and a $50,000 fine. Previously, the Commission and the United States Attorney's Office for the Central District of California filed civil and criminal charges, respectively, against Marks, the former president of Motorcar Parts & Accessories, Inc., a Southern California manufacturer of auto parts. The Commission's civil complaint and the Justice Department's criminal action, filed in December 2003, alleged that Marks engaged in fraudulent accounting practices and falsified Motorcar's books and records, thereby causing it to issue false and misleading financial information to the investing public in its 1997 and 1998 Forms 10-K filed with the SEC. At that time, Marks agreed to plead guilty to a two-count information and, in settlement of the Commission's action, to pay over $1.2 million and to be barred from serving as an officer or director of a public company. (See Litigation Release No. 18511)

http://www.sec.gov/litigation/litreleases/lr19277.htm