[comment: like he could pay restitution from bringing the
stock drown from $66 to $11 during a bull market.]
nytimes.com
June 13, 2003
Guilty Plea in Network Associates Inquiry
By REUTERS
AN FRANCISCO, June 12 ( Reuters) — A former executive at
Network Associates, a maker of security software, pleaded
guilty to fraud charges for taking part in a scheme to
inflate revenue, federal authorities said today.
The charges against the former executive, Terry Davis, 41,
were the first to emerge from an investigation into conduct
at Network Associates after the company restated its
earnings last year for the years 1998-2000, according to the
United States attorney's office for the Northern District of
California.
A lawyer for Mr. Davis, who faces a maximum of 10 years in
prison, a fine of $250,000 and restitution for damages, said
his client was satisfied with the plea.
"As to the criminal charges, we are satisfied with the plea
and we certainly acknowledge our responsibility," the
lawyer, Tom Nolan, said.
"We are going to continue to fully cooperate with the
investigation," he added.
In pleading guilty, Mr. Davis said he and others inflated
revenue by secretly paying distributors so they would hold
excess or unsold inventory they had purchased from Network
Associates.
He also admitted making false statements to the company's
independent auditor, PricewaterhouseCoopers and earned about
$1.4 million from trading the company's stock using
nonpublic information, authorities said.
Network Associates has been the subject of investigations by
the Securities and Exchange Commission and the Department of
Justice over the way the company booked revenue from
partners. |
