Computer Horizons/CEO: Cassese Released On Bail
Thursday March 13, 4:57 pm ET
Cassese, 56 years old, of Morristown, N.J., surrendered to federal authorities early Thursday and was later released on a $500,000 bond.
Cassese, dressed in a navy pin-striped suit and blue shirt, appeared but didn't speak at a brief bail hearing in Manhattan federal court.
His attorney, David Brodsky, told reporters outside of court that Cassese took a leave of absence from Computer Horizons so he could "devote his attention" to his defense.
"John will rely on justice being done in this case and looks forward to his acquittal of these charges," Brodsky said.
Prosecutors in the Manhattan U.S. attorney's office say Cassese reaped more than $150,000 in illegal profits from the insider-trading scheme.
Cassese in 1999 began negotiating a possible acquisition of Computer Horizons by Compuware Corp. (NasdaqNM:CPWR - News) , according to the complaint. But the deal fell through and Compuware later decided to buy Data Processing instead.
Cassese allegedly learned of the merger when Compuware's CEO called to tell him that Data Processing - not Computer Horizon - would be acquired.
Cassese purchased 15,000 shares of Data Processing before the merger was announced, and days later, sold the stock for one-day illegal profits of more than $150,000, according to the indictment.
Cassese is charged with two counts of fraud and faces up to 20 years in prison, plus fines, if convicted.
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