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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: Pat Hughes who wrote (6844)	3/27/1999 8:45:00 AM
From: Haim R. Branisteanu	Read Replies (1) \| Respond to of 21876

LU is no exception Small companies are the biggest culprits in cooking their books, study finds Copyright © 1999 Nando Media Copyright © 1999 Associated Press By NOELLE KNOX NEW YORK (March 26, 1999 6:41 p.m. EST nandotimes.com) - When it comes to cooking the books, small companies are the biggest culprits, a new study says. And while the financial finagling is small, the damage often isn't. Half the companies in the fraud study wound up either closing their doors or reorganizing in Bankruptcy Court. Investors should watch for red flags, such as a chief executive who is also the company founder and has a weak or inexperienced board of directors that has an unusually large stake in the company's stock, according to the findings released Friday. That "fits the profile of a company that may be involved in fraudulent financial reporting," said John Flaherty, chairman of the Committee of Sponsoring Organizations of the Treadway Commission, which is a consortium of five accounting groups.