COmputer Horizons' CEO Is Indicted
Thursday March 13, 12:53 pm ET
By Erin Mcclam, Associated Press Writer
Computer Horizons CEO Surrenders to FBI; He's Accused of Illegal Stock Trades With Insider Information
NEW YORK (AP) -- The CEO of information technology firm Computer Horizons Corp. surrendered to the FBI on Thursday as prosecutors accused him of making more than $150,000 on illegal stock trades from insider information.
John J. Cassese, 56, was expected to appear in Manhattan federal court later in the day. A newly unsealed indictment charges him with insider trading and fraud.
An eight-page indictment accuses him of buying 15,000 shares of California-based Data Processing Resources
Corp. on June 22, 1999 -- the day before that company's board approved an acquisition by Michigan-based Compuware Corp.
Cassese bought the shares at about $13.25 a share, the indictment charges, and Data Processing Resources
shares shot up to $23.50 after the deal was announced.
The indictment says Cassese learned of the impending acquisition when Compuware's chief executive officer called him to inform him Compuware was abandoning its bid to acquire Computer Horizons.
Computer Horizons announced Thursday that Cassese had taken a leave of absence as the company's CEO and president and resigned as chairman and a board member.
The company named its chief financial officer, William Murphy, as acting CEO and president, and named board member and retired AT&T executive Thomas J. Berry as chairman.
Michael J. Shea, vice president and controller, has been named acting chief financial officer, the company said.
Computer Horizons, based in Mountain Lakes, N.J., provides technology services, Web site design and strategic consulting. It reported a $124.5 million profit in 2001, the last year for which complete figures are available.
In afternoon trading on the Nasdaq Stock Market, Computer Horizons shares were down 18 cents, or 6.3 percent, at $2.66.
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