Update on scamsters we talked about before. My guess is more jails will have to built, given all the scam stocks out there. A couple of Cheaps picks come to mind>>Wednesday September 30, 2:36 pm Eastern Time
SEC sues two former Cal Micro executives
SAN FRANCISCO, Sept 30 (Reuters) - The U.S. Securities and Exchange Commission Wednesday accused two former executives of semiconductor component firm California Micro Devices Corp. (Nasdaq:CAMD - news) of illegal insider trading and financial reporting fraud.
In a lawsuit filed in federal district court in San Jose, the SEC accused former Cal Micro Chairman and CEO Chan Desaigoudar and former treasurer and chief financial officer Steven Henke of artificially inflating the company's publicly reported revenue during the fiscal year ended June 30, 1994.
Desaigoudar and Henke were convicted in July on federal criminal charges of having falsified Cal Micro's records in a 1994 accounting scandal at the company, which has since regrouped under a completely new management team. The pair was due to be sentenced next month.
The SEC's complaint charged Desaigoudar and Henke also engaged in illegal insider trading by selling Cal Micro stock in the fourth quarter of the 1994 fiscal year while knowing that the company had falsified its books and records.
By trading either in their brokerage accounts or in the company's 401(k) retirement savings plan, Desaigoudar and Henke avoided investment losses of $444,175 and $469,020, respectively, the SEC said.
The SEC has previously filed settled enforcement actions against four former Cal Micro executives, including the company's former president, its former chief accounting officer and two former vice presidents of production. |
