Pre-Paid Legal Confirms Reports of SEC Inquiry

THE JOURNAL RECORD, March 19, 2001 | Go to article overview

Pre-Paid Legal Confirms Reports of SEC Inquiry


ADA (JR) -- Pre-Paid Legal Services on Friday confirmed published reports that the Fort Worth office of the Division of Enforcement of the Securities and Exchange Commission has begun an informal inquiry into the company's accounting practices.

Pre-Paid said it has responded to confidential comments made by the SEC's Division of Corporation Finance regarding the 1999 Form 10- K.

The investigation was reported in Friday's Wall Street Journal.

"As we expected when the recent class actions were filed, we have received inquiries from both the Division of Enforcement and the Division of Corporation Finance of the SEC requesting information relating to our accounting policies for commission advances to sales associates," said Randy Harp, chief operating officer of Ada-based Pre-Paid Legal. "These are informal inquiries and do not constitute a formal investigation or proceeding. We are cooperating with the staff of the SEC and providing the requested information and expect to continue to do so."

Pre-Paid Legal Services develops and markets legal service plans. …

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Pre-Paid Legal Confirms Reports of SEC Inquiry
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