Inamed Ex-CEO McGhan to Pay $50,000 to Settle SEC Fraud Charges

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Example of McGhan's corrupt practices -

Thanks Lea,

Inamed Ex-CEO McGhan to Pay $50,000 to Settle SEC

Fraud Charges

Washington, March

Inamed Corp.'s former chairman K. McGhan agreed

to pay a $50,000 fine to settle regulators' charges

that the breast-implant maker inflated earnings in

1996 and 1997.

He neither admitted nor denied the Securities and

Exchange Commission's civil-fraud allegations. McGhan,

65, who lives in Las Vegas, couldn't be reached for

comment.

The SEC alleged that McGhan, while chairman and chief

executive of the Santa Barbara, California-based

company, ``either knew or was reckless in not

knowing'' of the company's false financial reports. He

resigned as chairman in February 1998.

Inamed failed to record a $1.4 million interest

expense, improperly reduced the allowance for product

returns, and overstated inventory, the SEC contended.

As a result, the company reported a $7.1 million net

loss in 1996, when it should have reported an $11.4

million loss, the agency said.

Inamed itself settled SEC charges last August by

agreeing to be subject to stiffer sanctions if it

commits similar violations. The company has restated

its financial statements for the periods at issue.