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Thursday November 20th, 2008 |
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Ex-Cendant chairman jailed for 12 years |
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Former Cendant Corp Chairman Walter Forbes was sentenced to 12 years and seven months in prison and ordered to pay $US3.3 billion ($A4.2 billion) for one of corporate Americas's biggest accounting scandals. |
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Ex-Cendant chairman jailed for 12 years
Email Print Normal font Large font January 18, 2007 - 6:44AM
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AdvertisementFormer Cendant Corp Chairman Walter Forbes was sentenced to 12 years and seven months in prison and ordered to pay $US3.3 billion ($A4.2 billion) for one of corporate Americas's biggest accounting scandals.
Prosecutors said Forbes and former Vice Chairman Kirk Shelton oversaw a decade-long accounting scheme that overstated income at Cendant, a travel and real estate company now known as Avis Budget Group Inc, and at predecessor company CUC International Inc.
US District Judge Alan Nevas in Bridgeport, Connecticut called the restitution "a reasonable estimate of the victims' losses" but he did not say how Forbes would be expected to pay such a large sum.
Forbes, 64, was convicted in October on one count of conspiracy and two counts of false reporting after two previous mistrials for his role in the accounting irregularities.
Cendant's stock market value sank about $US14 billion ($A17.91 billion) in one day after the fraud was disclosed in 1998. It was one of a series of accounting scandals that rocked Corporate America, and led to a settlement with investors worth $US2.85 billion ($A3.65 billion).
When the judge handed down the sentence, Forbes sat hunched forward, expressionless. He did not comment at the court hearing.
External Source - For the complete article click here
Source - The Age
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New York City-based Cendant Corporation (NYSE:CD) provides travel and residential real estate services to businesses and consumers in more than 100 countries. Cendant Hotel Group, based in Parsippany, N.J., is one of the world's largest integrated lodging franchise and management companies with more than 6,300 hotels on six continents under the Wyndham(R), Super 8(R), Days Inn(R), Ramada(R), Travelodge(R), Howard Johnson(R), Knights Inn(R), Wingate Inn(R) and AmeriHost Inn(R) brands. All hotels are individually owned, and they are operated under franchise agreements with Cendant subsidiaries.
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