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 | | Everlast was operated as a debtor-in-possession until October 5, 1994, when the Court appointed a Chapter 11 Trustee, who, with his court-approved counsel, had no affiliation with Everlast prior to October 5, 1994. |
 | | Everlast improperly reported the approximate $4 million value for the Patents in its Form 10, 1990 Form 10-K and 1991 Forms 10-Q. Of the $4 million reported value, $250,000 was acquired by a note. |
 | | Everlast knew that the staff had emphatically told Everlast that the $106 million value "was not acceptable." Everlast, nevertheless, reported the value of the Branson Property at $106 million, in part, because Everlast's auditor advised Everlast that it would be "wrong" not to. |
| www.sec.gov /litigation/admin/3436459.txt (1169 words) |
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