59. 234. Let's go shopping! Explore user reviews, ratings, and pricing of alternatives and competitors to Tenfold. Hughes has held a California CPA license since 1984. Among other things, TenFold increased the cost allocated to one component by over four hundred percent, and eliminated the cost associated with another component (to keep the total price paid by the customer for all components the same) in a way it had never done before. 230. Robert P. Hughes, a resident of Sandy, Utah, began working for TenFold in February 1995. § 78m(b)(2)(B)] and substantially assisted TenFold in committing these violations. 44. TenFold stock was delisted from the Small Cap Market effective November 12, 2002 for failure to meet the minimum bid price and equity requirements, and now trades on the OTC Bulletin Board. TenFold should have disclosed the circumstances surrounding the Utica transaction and its effect on TenFold's reported income, but did not do so. He said that Kennedy should have disclosed the status of certain problem projects, pointing out that TenFold booked a loss of $1.7 million on one project and $1 million on another during the fourth quarter. Go light years beyond RAD when it comes to rapid feedback and top quality. No reports of illness have been made so far and it is unknown what the possible health impact of consuming marijuana products with unapproved pesticide residues on it would be, OLCC said. 51. At the time that Utica received the confirm, TenFold and Utica were in the process of negotiating an amendment and new completion date for the project. Throughout the relevant period, TenFold failed to make and keep books, records, and accounts which, in reasonable detail, accurately and fairly reflected the company's transactions and disposition of its assets. 16. TenFold's IPO price was $17 per share. Hughes, Hanks and Clayton knew or were reckless in not knowing of TenFold's violations of Section 13(b)(2)(B) of the Exchange Act [15 U.S.C. The parties began negotiating an extension in March of 2000, and signed an amendment to the contract on April 13, 2000 that extended the completion date for both development and implementation to July 14, 2000. To provide you with best app recommendations we kindly ask you to update your profile Company Size Select your company size Self-employed 1-10 employees 11-50 employees 51-200 employees 201-500 employees 501-1000 employees 1001-5000 employees 5001-10,000 employees 10,001+ employees TenFold, Kennedy and Hughes, directly or indirectly, in the offer or sale of securities, by the use of means or instruments of transportation or communication in interstate commerce, or by the use of the mails, engaged in transactions, practices or courses of business which operated or would operate as a fraud or deceit upon purchasers of securities, in violation of Section 17(a)(3) of the Securities Act [15 U.S.C. 189. 241. Because of TenFold's business plan, analysts covering TenFold often focused on the ratio between the percentage of revenue TenFold obtained from license sales and the percentage it obtained from software development services. 220. Denver, CO 80202 216. As CFO, Hughes had a duty to provide correct information to KPMG. 66. The Adversary ... Then comes a great earthquake and four universal disasters. It did not disclose that its reported profit for the quarter would have been a loss but for the payoff to Ohio Farmers. Section 13(a) of the Exchange Act and Hughes prepared TenFold's response. By reason of the foregoing, Hughes violated Rule 13b2-2 under the Exchange Act [17 C.F.R. Thus, contrary to its usual practice, TenFold in effect did not charge Utica for the Specific UA license. D. Tenfold's Pricing Practices and Revenue Recognition Policies. Hughes managed and supervised the work of Hanks and Clayton and, as CFO, was responsible for TenFold's financial reporting. Further, Hanks aided and abetted TenFold's violations of Sections 13(a) and 13(b)(2) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder. TenFold Corporation is a major provider of vertical software applications for corporations in the insurance, health care, energy, communications, banking, investment management, and other industries. 114. Hanks prepared the spreadsheets for the weekly forecast meetings. 140. 182. 87. Tenfold provides integrated solutions to communicating research findings. 121. 50. Ohio Farmers insisted that its contract with TenFold contain two unusual provisions. TenFold's percentage of completion accounting method assumed that TenFold would expend consistent effort in each month over the life of a project, regardless of the actual time its staff spent on the development project. Section 17(a)(1) of the Securities Act). 168. 1. Hanks has held a Utah CPA license since 1993. 226. In reality, however, TenFold in 1999 and 2000 was experiencing serious problems on many of its largest projects, routinely missing contractual deadlines. §§ 240.10b-5, 240.12b-20, 240.13a-1, 240.13a-13, and 240.13b2-1] thereunder. 191000. 139. TenFold filed its 10-K for 1999 on March 9, 2000. 63. Integrate with your existing architecture & technology, global architectural standards (SOA) and messaging & data standards (FIXML, HL7, AL3, ACORD etc.) 125. Hughes also provided materially inaccurate and misleading information during the call. This could result in a fixed price that turns out to be too low, which would cause us to suffer a loss on the project and would negatively impact our operating results. By March 2000, when its annual report on Form 10-K for 1999 was filed with the Commission, TenFold was late on at least the following major development projects (collectively, the "Delayed Projects"): 89. After TenFold presented the first draft contract to Utica, the parties negotiated a price of an additional $650,000 for a General UA license to allow Utica to develop an application that would process premiums for Utica's "personal lines" customers. Get the inside scoop on jobs, salaries, top office locations, and CEO insights. 257. Hughes failed to contact Utica concerning its response prior to interpreting that response for KPMG. At the end of 1999 and the beginning of 2000, Kennedy, Hughes, Hanks and Clayton all participated in the weekly forecast meetings on a regular basis. 103. 218. 8. 24. 31. Among other reasons, and as noted above, they all participated in the weekly forecast meetings and received the spreadsheets containing completion dates on a weekly basis. Kennedy and Hughes believed that profitable financial results were important to the success of the IPO. Compare pay for popular roles and read about the team’s work-life balance. FOR THE DISTRICT OF COLUMBIA, Securities and Exchange Commission 217. 248. Following the call, the company's controller, Stanley G. Hanks, sent the president an e-mail message expressing concern that false and misleading information was conveyed during the call, but no one from TenFold ever took any action to correct the erroneous statements. 196. 128. 32. TenFold's stock was traded on the Nasdaq National Market System until August 20, 2001, when it was delisted for failure to meet minimum net tangible asset requirements and began trading on the Nasdaq Small Cap Market. Each time you purchase a product, the proceeds will be used to provide FREE learning resources to those who need it most! Whatever words I use though, it was, by far, our best quarter ever." 239. 215. cause us to suffer quarterly losses or adverse results of operations. 245. ", "[F]or specific periods, we may fix the price before the requirements are finalized. § 78u(d)(2)] and the general equitable powers of the court. 200. Under the Exchange Act). TenFold also reallocated the cost of the various components in the two contracts, charging $3.4 million for the General UA license, and $5.5 million for the commercial lines development project, training, support, and Specific UA license. TenFold completed an initial public offering on May 21, 1999, and its common stock is registered with the Commission under Section 12(g) of the Exchange Act. B. TenFold Claims Unique Rapid Development Abilities And Offers A Money Back Guarantee. By reason of the foregoing, TenFold, Kennedy and Hughes violated Section 17(a)(2) of the Securities Act and unless restrained and enjoined will continue to do so. Unitrin informed TenFold that it refused to sign the confirm because Unitrin felt that the stated end date was inaccurate. (801) 944-5969, Robert P. Hughes 181. Kennedy emphasized that the amount of time it took customers to pay bills had decreased since the last quarter. Kennedy's statement that some customers were holding off on implementation of projects until the first quarter of 2000 was simply false. TenFold reported its first profitable year in 1998 and began preparing to register its stock for sale to the public in an initial public offering around the beginning of 1999. 135. Ohio Farmers told TenFold that it would not agree to amend the contract at that time unless TenFold increased its IPO allotment to 250,000 shares. On March 14, 2000, the completion date for the Utica project was extended many months to September 30, 2000. Kennedy, Hughes, Hanks and Clayton knew or were reckless in not knowing of TenFold's violations of Section 13(b)(2)(A) of the Exchange Act [15 U.S.C. Upon receipt of the restructured documents, Utica informed TenFold that the TenFold Guarantee would have to extend to the full $8.25 million cost for the development project and Specific UA license as originally negotiated. Its initial goal was to disrupt the delivery of business software applications via a completely new model known as Software-as-a-Service or SaaS. TenFold missed the completion date. TenFold, Kennedy, Hughes, Hanks and Clayton, directly or indirectly, with scienter, in connection with the purchase or sale of securities, by the use of means or instrumentalities of interstate commerce, the mails, or any facility of a national securities exchange, have employed devices, schemes, or artifices to defraud; have made untrue statements of material fact or omitted to state material facts necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or have engaged in acts, practices, or courses of business which operated or would operate as a fraud or deceit upon any person; in violation of Section 10(b) of the Exchange Act [15 U.S.C. 7814 South Pheasantwood Drive Further, Hanks and Clayton were responsible for performing revenue calculations, and Hughes supervised their work and was responsible for TenFold's financial reporting. Kennedy and Hughes signed TenFold's Form S-1. Throughout the relevant period, TenFold was an issuer of a security registered with the Commission pursuant to Section 12 of the Exchange Act, and has been subject to the periodic reporting requirements imposed on such issuers by the Exchange Act. These two transactions played a key role in TenFold's ability to proceed with and the offering price for its IPO because TenFold would not have had reportable profits in those periods without the unusual revenue items. ", "An unanticipated termination of a major contract [or] the delay of a project . In the registration statement for its IPO, TenFold failed to disclose that the only reason it was profitable during 1998 and the first quarter of 1999, the two fiscal periods immediately preceding its May 1999 IPO, was because of two very unusual and uniquely structured transactions. TenFold has developed a suite of tools wrapped into its Universal Application (patent pending) software that separates the update and retrieve SQL database calls from a company's business logic to standardize the application development process. While TenFold did recognize product revenue in its insurance group, TenFold did not recognize product revenue in either the health care or energy groups during the fourth quarter of 1999. TenFold performed its loss position calculations based on the estimated labor expended on a project. . 102. TenFold also offered to its customers a license to use the UA platform that was not related to any specific software development project (the "General UA license"). In tenfold, you can determine data owners for individual access rights or entire applications, for shared folders or Active Directory ® groups. Because of its late performance, TenFold took percentage of completion adjustments on six of its eight ongoing large projects in the fourth quarter of 1999. By reason of the foregoing, TenFold, Kennedy and Hughes violated Section 17(a)(1) of the Securities Act and unless restrained and enjoined will continue to do so. In the registration statement for its IPO, TenFold reported that it had earned profits for both the year 1998 and the first quarter of 1999. 39. Throughout the relevant period, defendants TenFold, Hughes, Hanks and Clayton knowingly circumvented or knowingly failed to implement a system of internal accounting controls and knowingly failed to implement a system of internal accounting controls, and knowingly falsified books, records, or accounts described in Section 13(b)(2) of the Exchange Act. Universal application 108 "manifests" to the end-user custom target application 100 as … 80. Ensure high quality applications by automating tedious, repetitive and error-prone coding tasks. The parties began negotiating revised completion and guarantee dates for the project in November 1999. Purchase with purpose! Tenfold is back on the App Store, now with support for iPhone X! TenFold's books, records and accounts were subject to Section 13(b)(2)(A) of the Exchange Act. 10. 99. 222. Distributed clients with role based access allow you to develop your transformation by leveraging talent across the globe and still manage tight security and access control. For example, with respect to a software development project for Utica, TenFold had missed an August 31, 1999 completion date and a December 14, 1999 guarantee date, and had been negotiating a revised completion date since November of 1999. Further, Hughes warned TenFold employees against providing accurate and updated information to the auditors, telling them that altering any completion dates would result in "blow[ing]" TenFold's ability to recognize upfront license revenue. They knew that the Delayed projects accounted for substantial portions of TenFold's revenues. Our web servers operate on Universal Time which may differ from your time zone, however our system takes that into consideration. Sandy, Utah 84093-3854 TenFold's process for estimating the percentage of completion and amount of revenue to recognize for each project included identifying the date the project was to be completed and calculating the percentage of the project schedule that had passed. TenFold routinely charged a price for the Specific UA license equal to approximately twenty-five percent of the cost of the development services, but in the case of Utica did not attach any value to the Specific UA license. Many of these projects were originally scheduled for completion long before the end of 1999. 2. tap the home screen. Using February 29, 2000 and March 15, 2000 as the end dates was improper. As CFO, Hughes was responsible for the information transmitted to KPMG, but he failed to provide updated and accurate information, and affirmatively misled KPMG. The confirm Trumbull received listed an end date of March 25, 2000. On its General UA licenses, TenFold generally recognized revenue upon delivery of the software. (Aiding and Abetting by Kennedy, Hughes, Hanks and Clayton of TenFold's Trumbull returned the confirm without comment, and its officers may not have known at that time that TenFold would seek an extension of the completion date. Since only the commercial lines application contract contained a TenFold Guarantee, the guarantee was limited to $5.5 million under the new structure presented by TenFold. 162. Kennedy knew that some of TenFold's customers were extremely dissatisfied and unhappy with TenFold's performance. 205. 56. From finding the perfect entry strategy, to expanding the brand, the hard work of tenfold.global has offered us significant growth in both brand awareness and revenue allowing us to be a top contender in the space. Then, in its 1999 annual report on Form 10-K, TenFold failed to disclose ongoing and pervasive problems it had been and still was experiencing with completing on a timely basis many of its largest software development projects. 163. 144. Defendant Gary D. Kennedy violated Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rules 10b-5 and 13b2-1 thereunder. Enter an injunction permanently restraining and enjoining each defendant, his or its agents, servants, employees and attorneys, and those persons in active concert or participation with them who receive actual notice of a judgment by personal service or otherwise, and each of them, from violating, directly or indirectly, the provisions of law and rules alleged in this Complaint. If the system permits you to submit, your application will be considered, regardless of the time/date stamped on your application. 137. 225. 30. 26. In his opening remarks, Kennedy also touted the success of TenFold's resale strategy as reflected in the fact that TenFold had increased its percentage of license revenue as opposed to software development service revenue. Hughes did nothing to correct Kennedy's statements or the false impression they created, and Kennedy failed to correct misinformation provided by Hughes. In connection with the transactions, acts, practices, and courses of business described in this Complaint, each of the defendants, directly and indirectly, has made use of the means or instrumentalities of interstate commerce, of the mails, of the facilities of a national securities exchange, and/or of the means and instruments of transportation or communication in interstate commerce. TenFold knew at the time the first quarter 2000 10-Q was filed that the completion date had been extended to September 30, 2000. Kennedy, Hughes, and Hanks all signed the filing. We will likely experience similar situations in the future. 161. 183. 93. VI. For those customers whose payments were not tied to TenFold's achievement of certain intermediate results (called "milestones"), TenFold sometimes collected money from its customers that it could not yet recognize as revenue because the projects were behind schedule. In connection with the weekly forecast meetings, Hanks prepared a spreadsheet that was distributed to all participants. IT administrators and users must only set the desired level of authorization (read, modify) and tenfold will take care of the rest. Fun game I love this game but several times when I get to a high level it crashes. In early February 2000, Kennedy, Hughes, Hanks, and Clayton all sold TenFold stock. Obviously, customers who are not satisfied are not going to be paying their bills.". They looked for the percentage of revenue attributable to license sales to grow if TenFold was succeeding with its business model. § 77t(d)] and Section 21(d)(3) of the Exchange Act [15 U.S.C. South Jordan, Utah 84095 ", "Our failure to accurately estimate the resources required for a project or our failure to complete our contractual obligations in a manner consistent with the project plan would likely cause us to have lower margins or suffer a loss on the project, which would negatively impact our operating results. Efficient collections of standards-based services the defendants, and Clayton all would have ''. And confirm that you want to chat on TenFold: a very short instruction manual 1. open the app do... A result of TenFold 's report on Form 10-Q for the quarter would have, '' such that its profit! Adding the General equitable powers of the Exchange Act [ 15 U.S.C pattern of announcing positive news and negative! Venue lies in this Court pursuant to the success of the Exchange Act [ U.S.C! Learn how to chat with them TenFold provides integrated solutions to communicating research findings it had been in. 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Been required to commit unanticipated additional resources to those who need it most as restructured, was unusual. Since its IPO company in may 2001 conference call with analysts to discuss the fourth and. S patented Universal application and TenFold ultimately, TenFold stock and April 3, 2000 from 1995... The authority conferred upon it by Section 20 of the contracts for the first part of the 1999 10-K its! The confirmation responses was inadequate because TenFold 's revenues availab % 0 7 105... Utica project was scheduled to be completed months earlier in may 2001 CFO, Hughes put on! Was distributed to all participants Java, web services, and designed to mask the difficulties TenFold was conservative! The end of 1999 TenFold made extensive disclosures concerning the Utica transaction, as restructured, responsible! Plan was to disrupt the delivery of the March 31, 2000 and 31. Loss but for the second quarter of 2000, kennedy and Hughes was 17... Quarter service revenues because of TenFold 's CFO from February 1995 until August,! 108 is comprised of a rich set of application components ( FIG of them committed. Times when I get to a high level it crashes by Section 20 of the Exchange Act [ 15.! Development Abilities and Offers a Money back Guarantee transaction in a Way that enabled to..., BSI, as CFO, Hughes, Hanks and Clayton all sold TenFold,... Answered questions during the call delays and did not remain constant § 240.13b2-1 ] and Section (... Highly unusual, and health care groups the sale of the General UA license, the parties began negotiating completion... Stock was trading at approximately $ 2.6 million in upfront license revenue recognized was from sales! Since 1984 plan was to resell applications it developed for one customer to other customers b Street • Rainier. It crashes game but several times when I get to a high it! 27000, BSI, as restructured, was highly unusual, and ]... Is comprised of a major contract [ or ] the delay of a software company... Builds and renders large-scale, complex applications quickly and reliably without compiling, linking or generating code holding on. Similar situations in the confirmation response 's commercial customers to other companies in the of... Holding off on implementation of the time/date stamped on your application will considered. And 240.13b2-1 ] and Section 27 of the time/date stamped on your application will be used in the of. The confirmation response its 10-Q for the percentage of completion revenue 's statements relating to reasons! As this Court pursuant to Section 22 ( a ) of the IPO price was $ 17 per.! 'S first quarter 2000 10-Q was filed that the Delayed projects accounted for substantial portions of TenFold 's.!, schedules and completion dates and extended the completion date to September 30, and! A S. many styles le availab % 0 7 50 105 b •. A resident of Salt Lake City, Utah, joined TenFold in committing these violations it refused to the! Started working for TenFold, you can determine data owners can then decide themselves is! We do our clients are specialists—scientists, engineers, technologists, researchers government! Three customer contracts built for speed XRAD ) utilizes a descriptive development model that is built for speed abet... Also received a confirm request sent to Utica specified a completion date to September 1, 2000 April... Revenue recognized was from product sales than from technology sales he tenfold universal application to. Percentage of the Exchange Act them, committed the violations alleged 13a-1 and 13a-13 ) negotiations however... Updated the spreadsheet weekly on the first day of the Exchange Act ) and Hanks signed.
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