nytimes.com
"Over the last few years, executives at some companies released inaccurate earnings statements and, before correcting them, sold large amounts of stock at inflated prices. At others, executives insisted for months that the recent recession would not much affect their businesses. By the time they acknowledged their error, some had sold millions of shares at prices that were just a memory.
It happened at major technology companies like Oracle and Sun Microsystems (news/quote). It happened at Guess and at Xerox (news/quote), at Dollar General (news/quote), a discount retailer, and at Providian Financial (news/quote), a credit card company."
"IN other S.E.C. cases, executives have often kept much of the profit they made before their companies restated earnings. This year, David A. Thatcher, the former president of Critical Path Inc. (news/quote), an e-mail provider based in San Francisco, pleaded guilty to conspiracy to commit securities fraud and agreed to pay a $110,000 fine.
He did not have to return any of the $8.6 million he made selling Critical Path stock in 2000 because he made his final stock sale in August, the month before evidence suggested that he committed fraud, an S.E.C. official said."
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