Let's go shopping! After Kennedy finished discussing service revenues, Kennedy asked Hughes if Hughes had anything to add. In addition, defendant Hughes provided false and misleading information to TenFold's auditors. During all relevant periods, KPMG LLP ("KPMG") served as TenFold's outside auditors. For those customers whose payments were tied to contract milestones, TenFold had not yet achieved the results necessary to trigger the billing of many of these customers. VI. Hughes, Hanks, and Clayton, as part of TenFold's accounting or finance department or division, were responsible for and implemented TenFold's system of internal controls. Kennedy, Hughes, Hanks and Clayton all would have known that the Utica and Trumbull systems had not been completed at the time TenFold filed its 1999 10-K. 188. 264. Kennedy's statement, however, was false; only about 22% of TenFold's license revenue for the quarter was derived from the sale of products. By providing perspective, rigorous problem solving, and communication that is Before August 2000, TenFold did not disclose any problems with its software development projects, except for the Ohio Farmers contract, which had resulted in litigation by the third quarter of 1999. TenFold allows standards-based integration within or outside the enterprise, using both thick and thin (web) client based development and access for Enterprise applications. 67. These disclosures include the following: 143. 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. Compare the best Tenfold alternatives in 2020. IV. 14. Shortly before the 1999 10-K was filed, Hughes represented to KPMG in a letter dated March 7, 2000 that no events had occurred from December 31, 1999 through the date of the letter that would have a material effect on TenFold's financial statements. Thus, TenFold engaged in a pattern of announcing positive news and withholding negative news. TenFold Corporation ("TenFold" or the "Company"), a software development company, fraudulently reported misleading information regarding its financial position and business success in its registration statement filed with the Commission for its May 1999 initial public offering ("IPO") and in its public statements and periodic Commission filings related to its 1999 and first quarter 2000 operations. TenFold recognized approximately $2.9 million in upfront license revenue on the sale of the General UA license to Utica. ‎TENFOLD Education is South Africa’s first Mobile based learning application for High School learners. In 1999 and the first part of 2000, TenFold engaged in a pattern of announcing positive news and withholding negative news. Sandy, Utah 84093 The 2020/2021 Universal College Application is now available. 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 failed to disclose that its reported profit for the first quarter of 1999 would have been a loss but for the payoff to this customer. 211. 156. 222. 103. Section 13(a) of the Exchange Act and By reason of the foregoing, Kennedy, Hughes, Hanks and Clayton aided and abetted TenFold's violations of Section 13(b)(2)(A) of the Exchange Act, and unless restrained and enjoined will continue to aid and abet violations of these provisions. Kennedy and Hughes were both aware of and approved the Utica transaction. TenFold was founded in 1993. 72. Clayton was the individual responsible for calculating the amount of revenue to be recognized on the Utica, Unitrin and Trumbull projects and provided those numbers to Hughes for the financial statements. While Kennedy mentioned that TenFold had experienced project delays, he minimized that factor's impact and focused on other factors, including staff vacations, customers choosing not to put applications into production until after the fourth quarter of 1999 presumably because of Y2K concerns, and costs associated with the acquisition of another entity. Order Kennedy, Hughes, Hanks, and Clayton to disgorge and pay over, as the Court may direct, all ill-gotten gains received or benefits in any form derived from the illegal conduct alleged in this Complaint, together with pre-judgment interest as provided by law. 183. Further, Hanks and Clayton were responsible for performing revenue calculations, and Hughes supervised their work and was responsible for TenFold's financial reporting. 157. Kennedy emphasized that the amount of time it took customers to pay bills had decreased since the last quarter. Grant such other relief as this Court may deem just or appropriate. 155. 197. _____ how to chat on tenfold: a very short instruction manual 1. open the app. 133. 108. IT administrators and users must only set the desired level of authorization (read, modify) and tenfold will take care of the rest. TenFold missed the November 30, 1999 completion date. could . 47. Ratings and Reviews See All. §§ 240.12b-20, 240.13a-1, and 240.13a-13] and unless restrained and enjoined will continue to do so. In the 10-K, TenFold touted the success of its business strategy and attempted to distinguish itself as a software provider that solved the "buy vs. build" dilemma faced by many companies seeking to replace enterprise-wide applications. Hanks drafted the Management's Discussion and Analysis portion of the 1999 10-K. 138. 262. Similarly, with respect to an application for Unitrin Services Company ("Unitrin"), TenFold had missed a completion date of March 7, 1999 and an extended completion date of November 30, 1999. due to . Kennedy's statement that some customers were holding off on implementation of projects until the first quarter of 2000 was simply false. 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 § 78m(b)(2)(A)] and unless restrained and enjoined will continue to do so. From June 1998 through June 1999, Clayton served as a financial analyst for TenFold, reporting to Hanks. 65. 31. 5. It did not disclose that its reported profit for the quarter would have been a loss but for the payoff to Ohio Farmers. Explore user reviews, ratings, and pricing of alternatives and competitors to Tenfold. Kennedy and Hughes were both aware that the unusual dealings with Ohio Farmers resulted in the recognition of additional revenue that turned a loss for the quarter into a profit, yet they both approved and signed the registration statement that failed to disclose this important information. . 7. The free trial version will give you insight into the full range of tenfold’s features and outline the benefits of access rights management with tenfold. The confirm Trumbull received listed an end date of March 25, 2000. Unitrin never returned the original confirm. Utica used this language in its response. 213. 236. 165. 190. 128. TenFold manipulated the structure of the Utica transaction in a way that enabled it to accelerate recognition of revenue into 1998. 16. The parties began negotiating revised completion and guarantee dates for the project in November 1999. 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. 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. 84. In Commission filings and other public statements, TenFold claimed that its guarantee was unique in the industry. Order each of the defendants to pay civil money penalties pursuant to Section 20(d) of the Securities Act and Section 21(d)(3) of the Exchange Act. 233. At all relevant times, TenFold failed to devise and maintain a system of internal accounting controls sufficient to provide reasonable assurances that transactions were recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles or any other criteria applicable to such statements. Utica did not return the confirm to KPMG because it felt that the February 29, 2000 end date was inaccurate. 254. (Violations by TenFold, Kennedy, Hughes, Hanks and Clayton of 145. 220. 217. Thus, Kennedy, Hughes, Hanks and Clayton all would have known that incorrect completion dates were being used to calculate revenue. §§ 240.10b-5, 240.12b-20, 240.13a-1, 240.13a-13, and 240.13b2-1] thereunder. (TenFold's violations of Section 13(b)(2)(A) of the Exchange Act). 4.8 out of 5. Use of the March 31, 2000 end date was improper. In connection with KPMG's audit of TenFold's 1999 financial statements, KPMG requested that TenFold confirm end dates with certain customers. 34. On these contracts, TenFold recognized revenue on a percentage of completion basis, and utilized completion dates for purposes of calculating revenue recognition that were clearly wrong at the time it filed its financial statements. 30. As a result of this amendment, TenFold recognized approximately $2.6 million in revenue that it otherwise could not have recognized in the first quarter of 1999. Moreover, the TenFold accounting department was generally not informed when team sizes changed on projects, so it could not even re-estimate labor costs. In marketing materials and filings with the Commission, TenFold claimed that it could develop applications in a matter of months that it would take other software developers years to develop. Violations of Section 13(b)(2)(B) of the Exchange Act). 193. If we have any revenue adjustments we will have to restate our year-end financial statements. Plaintiff repeats and realleges paragraphs 1 through 222 above. 168. Hanks stated that Kennedy should have been clearer about project problems. 200. 106. ... Enterprise is a universal rapid application development platform for build business management solutions in HORECA, Retail, Manufacture, Logistic, Finance and other industries. TenFold's changes did not comport with economic realities, the prices the parties had negotiated, or TenFold's normal business practices. V. TENFOLD'S FAILURE TO DISCLOSE UNUSUAL TRANSACTIONS IN ITS REGISTRATION STATEMENT. 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. (801) 277-4099. When TenFold was having difficulty completing a project, one way it attempted to get back on schedule was to assign additional people to the project. 182. This document showed the anticipated end date of a project, the percentage of the project that was complete, and the amount of revenue recognized on the project. By way of example, TenFold's president, Gary D. Kennedy, and its chief financial officer ("CFO"), Robert P. Hughes, held a conference call with analysts on February 1, 2000, providing information and answering questions in a way that fraudulently masked the difficulties the company was experiencing in timely completing contracts. 38. Hughes managed and supervised the work of Hanks and Clayton and, as CFO, was responsible for TenFold's financial reporting. 208. 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. Defendant Robert P. Hughes violated Section 17(a) of the Securities Act, Sections 10(b) and 13(b)(5) of the Exchange Act and Rules 10b-5, 13b2-1, and 13b2-2 [17 C.F.R. 257. 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. Additionally, due to inherent uncertainties involved in accurately estimating the percentage of completion for its development projects, TenFold established a policy, which it communicated to its auditors, of holding back twenty percent (20%) of the revenues from a project (the "holdback") until the project was completed or close to completion. 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. 229. 142. Moreover, the Commission seeks an order prohibiting Kennedy and Hughes from serving as officers and directors of a public company pursuant to Exchange Act Section 21(d)(2) [15 U.S.C. Defendants TenFold, Kennedy, Hughes, Hanks and Clayton directly or indirectly falsified or caused to be falsified TenFold's books, records and accounts. 48. (801) 944-5969, Robert P. Hughes 42. 178. 2926 East 3835 South TenFold split the components into two contracts -- one for the purchase of TenFold's development services, a Specific UA license, training, and support, and another for the purchase of a General UA license. 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. 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. 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 failed to do so, and then compounded its fraud by portraying business problems that actually existed as mere possibilities. 105. These results materially overstated TenFold's revenue and net income. WHEREFORE, the Commission respectfully requests that the Court: Find that the defendants, and each of them, committed the violations alleged. 228. Plaintiff repeats and realleges paragraphs 1 through 254 above. Plaintiff repeats and realleges paragraphs 1 through 225 above. (Colo. Attorney Reg. 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