To: Elroy Jetson who wrote (91056 ) 10/1/2007 11:14:07 PM From: Lizzie Tudor Read Replies (2) | Respond to thanks. So the first thing I notice here is the SEC charged them with CIVIL, and not CRIMINAL behavior, which is wierd because I thought you only got prison terms with criminal charges. Well obviously Forbes was criminally charged recently because he got 12 years.He was convicted last year of one count of conspiracy and two counts of false reporting after two previous mistrials for his role in the accounting irregularities.The president of CUC, Kirk Shelton, was convicted in January 2005 of 12 counts of fraud and related charges, and sentenced to 10 years in prison; the CEO and Chairman, Walter Forbes, deadlocked the juries in two accounting fraud trials, and a third trial is planned for September 2006. The Securities and Exchange Commission brought civil charges against Forbes and Shelton for the "long-running financial fraud", which, it alleged, started in 1985. The SEC stated that CUC inflated its books in order to inflate its stock price, which allowed it to use its stock to buy other companies; and in turn these mergers and acquisitions were executed in order to generate financial reserves and purchase reserves that were intended to be "big enough to bury the fraud".
