Thanks for the update Bill. Here is a another case, against a
CEO, that will sound familiar to everyone. It will be interesting
to see what his sentence is.
biz.yahoo.com
Wednesday November 25, 8:23 pm Eastern Time
U.S. Jury convicts former Ferrofluidics CEO
NEW YORK, Nov 25 (Reuters) - A U.S. district court jury in Manhattan
convicted the former chief executive of Ferrofluidics Corp. (Nasdaq:FERO - news) late Tuesday, finding him guilty of securities fraud and conspiracy in falsely inflating the price of the company's
stock. At the end of an 11-week trial, the jury deliberated just four hours before voting to convict the former CEO, 59-year-old
Ronald Moskowitz. According to evidence presented at the trial from 1991 to 1993 Moskowitz conspired with other officers and consultants of the firm to inflate Ferrofluidics' share price, using false news releases, misleading Securities and Exchange Commission filings,
falsified minutes of board meetings and fraudulent public disclosure of non-existent contracts.The jury found that Moskowitz overstated the company's 1992 net income by $1.6 million on reported revenues of $3.5 million. Moskowitz personally profited from the fraud by selling $14 million in Ferrofluidics stock through family trusts he controlled, according to the U.S. Attorney's office in Manhattan.
The evidence also showed that Moskowitz had the company issue back-dated warrants to pay the publisher of The International Investor, a market newsletter, to promote Ferrofluidics shares, the U.S. Attorney said.Moskowitz faces a maximum of 15 years in prison when he is sentenced before Judge Michael Mukasey Feb 26. |
