Former Teletek Executive Sentenced to Seven Years, Paper Says
Las Vegas, March 8 (Bloomberg) -- Teletek Inc.'s former president, Keith Shwayder, was sentenced to seven years in jail for racketeering, conspiracy, money laundering and stock fraud, the Rocky Mountain News reported.
Shwayder, 62, was found guilty in December 1999. Prosecutors alleged he and other executives of the pay-phone company conspired to drive up the price of the company's stock by bribing brokers and promoters with cash and stock, the paper said. He was also convicted of reaping more than $622,000 in profits from insider trading of Teletek stock.
Shwayder, who is the grandson of Samsonite Corp's founder, was also ordered to pay more than $1.5 million in restitution for the stock promotion plan that cost investors almost $5 million, the paper said.
Neither Shwayder or his attorney could be reached for comment, the paper said. U.S. District Judge Philip Pro said the sentence, a year short of the maximum, was imposed because Shwayder lied on the witness stand during his trial.
(Rocky Mountain News Interactive 3-8)
Mar/08/2001 12:09 ET
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