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Non-Tech : The Enron Scandal - Unmoderated -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (2686)	6/6/2003 12:23:49 AM
From: Glenn Petersen	Read Replies (1) \| Respond to of 3602

Ex-McKesson chairman faces fraud charges boston.com By Associated Press, 6/5/2003 SAN FRANCISCO -- A federal grand jury has indicted the former chairman of health services giant McKesson Corp., alleging he conspired in an accounting ruse that inflicted $9 billion in shareholder losses after it unraveled four years ago. The indictment, unsealed yesterday, charges Charles W. McCall with fabricating revenue and then trying to cover up the scandal as part of a scheme to inflate profits to drive up the company's stock. With the charges, McCall, 59, becomes the highest-ranking insider to face charges of misconduct in a debacle that continues to haunt San Francisco-based McKesson. Three other executives pleaded guilty in the case, according to court documents unsealed yesterday. All three are cooperating with the investigation. The company, formerly called McKesson HBOC, earned $555 million on revenue of $57.1 billion in the fiscal year ended March 31. McCall had been chairman of Atlanta software maker HBO & Co. until it was sold to McKesson in January 1999 for $12 billion. He became chairman of the combined entity before getting fired in June 1999 after the company uncovered the accounting shenanigans. Each of the seven counts against McCall carries a penalty of five to 10 years as well as fines of up to $1 million. McCall realized a $49.7 million gain exercising HBOC stock options in 1997; prosecutors indicated yesterday they will try to force him to forfeit some of that money. Federal authorities said McCall left the country Tuesday -- the day the federal grand jury returned the charges. ''I am not alleging he fled to avoid prosecution,'' said US Attorney Kevin Ryan, ''but he will be arrested when he returns to the United States.'' This story ran on page E11 of the Boston Globe on 6/5/2003. © Copyright 2003 Globe Newspaper Company.