First American Health Concepts restated earnings in 2000, after inflating 1999 income. The company develops and markets vision care programs and related health care services for businesses and organizations.

The SEC brought and settled charges Monday against former Chairman John Behrmann and former Chief Financial Officer Margaret Eardley, saying they signed off on the company's books in 1999, even though they knew accounts receivables hadn't been reconciled for at least a year and were out of balance with the general ledger.

Had the accounting been in order, First American Health Concepts would have shown a loss for 1999, not the profit it reported, the SEC said. No charges were filed against the Phoenix-based company, which was previously listed on the American Stock Exchange.

Behrmann agreed to pay a $75,000 fine and be barred from serving as a corporate officer or director. His attorney, Jeff Jamouneau, declined to comment.

Eardley will pay $25,000. The SEC said she informed Behrmann of the problem but followed his order to ignore it. Her attorney, Barry Boss, had no immediate comment.

In a related move, John Back, a former KPMG LLP auditor responsible for auditing First American Health Concepts, agreed to be barred from public company accounting. The SEC said he knew or should have known of the accounting problems. All three settled without admitting or denying the SEC's allegations regarding the 1999 audit. KPMG resigned as the company's independent auditor in 2000.

Back's attorney couldn't immediately be reached for comment.

-- Judith Burns