For other versions of this document, see http://wikileaks.org/wiki/CRS-RL31866 ------------------------------------------------------------------------------ Order Code RL31866 CRS Report for Congress Received through the CRS Web Criminal Charges in Corporate Scandals Updated May 30, 2006 Mark Jickling Specialist in Public Finance Government and Finance Division Paul H. Janov Information Research Specialist Knowledge Services Group Congressional Research Service ~ The Library of Congress Criminal Charges in Corporate Scandals Summary Since the collapse of Enron Corp. in late 2001, there has been a series of scandals involving major U.S. corporations. Recurring elements in the scandals include improper or fraudulent accounting, self-enrichment by corporate officers, stock trading on inside information (insider trading), and the destruction or falsification of business records. A number of cases have resulted in criminal indictments, some followed by guilty pleas. This report tracks post-Enron criminal charges. Companies are listed alphabetically, and individuals who have been charged, indicted, or have pleaded guilty are identified. A longer list of companies with recent accounting problems (not all of which have resulted in criminal indictments) may be found in CRS Report RS21269, Accounting Problems Reported in Major Companies Since Enron, by Mark Jickling. The 107th Congress responded to the series of corporate scandals that began with Enron by passing the Sarbanes-Oxley Act of 2002. That law created a new oversight body for corporate auditors, imposed new disclosure requirements on corporations, including a mandate that CEOs personally certify the accuracy of their firms' public financial reports, and increased criminal penalties for a number of offenses related to securities fraud. For a summary of the legislation, see CRS Report RL31554, Corporate Accountability: Sarbanes-Oxley Act of 2002 (P.L. 107-204), by Michael V. Seitzinger and Elizabeth B. Bazan. This report will be updated regularly. Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 List of Tables Table 1. List of Charges, Indictments, and Guilty Pleas in Corporate Scandals Since Enron . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Criminal Charges in Corporate Scandals Introduction On July 30, 2002, President Bush signed into law the Sarbanes-Oxley Act of 2002, P.L. 107-204, which had its genesis early in 2002 after the declared bankruptcy of Enron Corporation. The act establishes a new regulator for corporate auditors, the Public Company Accounting Oversight Board, which is to be supervised by the Securities and Exchange Commission. The act restricts accounting firms from performing a number of other services for the companies they audit and requires new disclosures for public companies and the officers and directors of those companies. Other issues affected by the new legislation are securities fraud, criminal and civil penalties for violating the securities laws and other laws, blackout periods for insider trades of pension fund shares, and protections for corporate whistleblowers. The ongoing criminal prosecutions are a complementary phase of the effort to improve corporate accountability. Many observers maintain that prosecution of individuals alleged to have abused the public trust, together with new legal and regulatory standards for corporate behavior, is crucial to restoring investor confidence in the fairness and transparency of the public securities markets. Table 1 identifies firms and individuals associated with a number of high-profile cases against whom criminal charges have been filed by federal prosecutors since the collapse of Enron Corp. (although in some cases the alleged misconduct occurred before Enron's fall). In addition to newspaper sources, Department of Justice press releases have been cited where available. See [http://www.usdoj.gov/03press/03_1_1.html]. A few of these cases, as noted in the table, have also resulted in civil indictments. These post-Enron criminal charges are listed in CRS Report RL31961, Civil Charges in Corporate Scandals, by Mark Jickling and Paul H. Janov. CRS-2 Table 1. List of Charges, Indictments, and Guilty Pleas in Corporate Scandals Since Enron Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) Adelphia Communications John J. Rigas (chief executive officer) 9/23/02(C) All charged with wire fraud, bank fraud, securities fraud, New York Times, 7/8/04 (G) and conspiracy. 9/24/02,sec. C, p. 1, col. 5 Timothy Rigas (chief financial officer) 9/23/02 (C) John Rigas and Timothy Rigas were found guilty of one New York Times, 7/9/04, 7/8/04 (G) count of conspiracy, 15 counts of securities fraud, and sec. A, p. 1, col. 1 two counts of bank fraud. 6/20/05 (G) John Rigas was sentenced to 15 years in prison, and New York Times, 6/21/05, Timothy Rigas was sentenced to 20 years in prison. sec. C, p. 1, col. 6 Michael Rigas (executive vice president) 9/23/02 (C) Michael Rigas was acquitted of conspiracy and wire New York Times, 7/10/04, fraud, but the jurors said they were still undecided on the sec. C, p.1, col. 5 securities fraud and bank fraud charges against him. The judge said he planned to give the jurors additional instructions to try to break the deadlock, but a mistrial was declared after the deadlock continued. It is not clear whether the government will schedule a new trial. James R. Brown (vice president for finance) 9/23/02 (C) New York Times, 9/24/02, 9/14/02 (G) sec. C, p. 1, col. 5, and 11/15/02, sec. C, p. 7, col. 1 CRS-3 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) Michael C. Mulcahey (director of internal 9/23/02 (C) Michael C. Mulcahey was acquitted on all counts. New York Times, 9/24/02, reporting) 7/8/04 (A) sec. C, p. 1, col. 5 Timothy Werth (director of accounting) 01/10/03 (G) Securities fraud, wire fraud, and bank fraud New York Times, 1/11/03, sec. C, p. 3, col. 1 Arthur Andersen David Duncan (former partner) 4/10/02 (G) Obstruction of justice (related to Enron audit). Arthur New York Times, 4/11/02, Andersen (the firm) was convicted on the same charge in sec. A, p. 1, col. 2 June 2002. Charter Communications Kent Kalkwarf (chief financial officer) 7/24/03 (I) Conspiracy to commit wire fraud New York Times, 7/25/03, sec. C, p. 3, col. 1 David Barford (chief operating officer) James Smith (senior vice president) David McCall (executive) 7/25/03 (G) Conspiracy to commit wire fraud New York Times, 7/26/03, sec. C, p. 2, col. 3 CRS-4 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) Credit Suisse First Boston Frank P. Quattrone (banker) 5/12/03 (I) Obstruction of justice and destroying evidence New York Times, 5/13/03, sec. C, p. 1, col. 2 10/24/03 A federal judge declared a mistrial in the obstruction of New York Times, 10/25/03, justice trial of Frank P. Quattrone. sec. A, p. 1, col. 1 12/2/03 A federal judge set a March 22, 2004, date for the second New York Times, 12/2/03, trial of Frank P. Quattrone. sec. C, p. 5, col. 1 5/3/04 (G) Quattrone was found guilty of trying to impede New York Times, 5/4/04, government investigations into how stock offerings were sec. A, p. 1, col. 6 doled out to investors. 9/8/04 Quattrone was sentenced to 18 months in prison and fined New York Times, 9/9/04, $90,300. sec. A, p. 1, col. 1 Dynegy Inc. Gene S. Foster (vice president) 8/5/03 (G) Conspiracy to commit securities fraud New York Times, 8/6/03, sec. C, p. 4, col. 1 Helen C. Sharkey (accounting manager) CRS-5 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) Jamie Olis (director for tax planning) 8/5/03 (I) Conspiracy to commit securities fraud New York Times, 8/6/03, sec. C, p. 4, col. 1 3/25/04 (G) A federal judge sentenced Jamie Olis to more than 24 New York Times, 3/26/04, years in prison for his role in a secretive project to sec. C, p. 2, col. 1 disguise Dynegy's financial difficulties. He had been found guilty in November 2003. Enron Corp. Michael Kopper (finance executive) 8/21/02 (G) Conspiracy to commit wire fraud and money laundering New York Times, 8/22/02, sec. A, p. 1, col. 6 Andrew Fastow (chief financial officer) 10/2/02 (C) Charged with securities fraud, wire fraud, mail fraud, Department of Justice, money laundering, and conspiracy 10/2/02, press release #568a; 10/31/02 (I) Indicted by a grand jury on 78 counts of fraud, money 10/31/02, press release laundering, and conspiracy #627; 5/1/03 (I) Charged with insider trading and tax fraud 5/1/03, press release #268 1/14/04 (G) Under the terms of a plea agreement, Fastow will 1/14/04, press release #19 cooperate fully with the government's investigation, serve a 10-year prison sentence on the two counts to which he's pleading guilty, and forfeit more than $29 million. The remaining 96 criminal charges against Fastow from a May 2003 indictment are pending and will be dismissed if the government determines that Fastow has cooperated fully and truthfully. Timothy N. Belden (senior trader) 10/17/02 (G) Pleaded guilty to engaging in a conspiracy that illegally New York Times, 10/18/02, manipulated the California power market sec. C, p. 1, col. 5 CRS-6 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) Lawrence M. Lawyer (finance executive) 11/26/02 (G) Pleaded guilty to filing a false income tax return and Department of Justice, failing to report taxable income 11/26/02, press release #696 Jeffrey Ricter (senior trader) 2/4/03 (G) Pleaded guilty to manipulating the California power New York Times, 2/5/03, market sec. C, p. 2, col. 4 Kevin Howard (Enron Broadband Services 3/12/03 (I) Charged with securities fraud, wire fraud, conspiracy, and Department of Justice, [EBS] vice president of finance) 5/1/03 (I) making false statements to FBI agents 3/12/03, press release #153 Michael Krautz (EBS senior director of 3/12/03 (I) Department of Justice, accounting) 5/1/03 (I) 5/1/03, press release #268 Ben Gilsan (treasurer) 5/1/03 (I) Securities fraud, insider trading, and tax fraud Department of Justice, 5/1/03, press release #268 9/10/03 (G) Pleaded guilty to conspiracy to commit wire and Department of Justice, securities fraud and was sent to prison to serve a five-year 9/10/03, press release #492 sentence. Dan Boyle (finance executive) 5/1/03 (I) Securities fraud, insider trading, and tax fraud Department of Justice, 5/1/03, press release #268 11/3/04 (G) Convicted of conspiring to help Enron report bogus New York Times, 11/4/04, profits sec. C, p. 1, col. 5 CRS-7 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) Kenneth Rice (EBS chairman) 5/1/03 (I) Securities fraud, wire fraud, and money laundering Department of Justice, 5/1/03, press release #268 7/30/04 (G) Pleaded guilty to securities fraud and agreed to cooperate Department of Justice, fully with the government's ongoing criminal 7/30/04, press release #525 investigation into the collapse of Enron. As part of his plea, Rice has agreed to the forfeiture of approximately $13.7 million to be used to compensate victims of the Enron fraud and to pay an additional fine of $1 million. Joseph Hirko (EBS president) 5/1/03 (I) Securities fraud, wire fraud, and money laundering Department of Justice, Scott Yeager (EBS senior vice president) 5/1/03, press release #268 Rex Shelby (EBS senior vice president) Kevin Hannon (EBS chief operating officer) 8/31/04 (G) Kevin Hannon pleaded guilty to conspiracy to commit Department of Justice, securities and wire fraud. He faces a maximum sentence 8/31/04, press release #591 of five years in prison and a fine of $250,000 and will forfeit approximately $2.2 million to the government, to be used to compensate victims of the Enron fraud. Lea Fastow (assistant treasurer) 5/1/03 (I) Conspiracy to commit wire fraud, money laundering Department of Justice, conspiracy, and filing false tax returns 5/1/03, press release #268 5/6/04 (G) Lea Fastow was sentenced to one year in jail and a one- Department of Justice, year period of supervised release to follow her term of 5/6/04, press release #306 incarceration after pleading guilty to one count of filing a false federal income tax return. Mrs. Fastow also relinquished any claim to almost $30 million in forfeited funds seized by the Enron Task Force in May 2003 for the benefit of victims of fraud at Enron. CRS-8 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) John M. Forney (trader) 6/3/03 (C) Charged with manipulating the California power market New York Times, 6/4/03, sec. C, p. 6, col. 3 David Delainey (CEO of Enron North America 10/30/03 (G) Pleaded guilty to a one-count indictment charging him Department of Justice and Enron Energy Services) with insider trading 10/30/03 press release #594 Richard Causey (chief accounting officer) 1/22/04 (C) Charged with five counts of securities fraud and one Department of Justice, count of conspiracy to commit securities fraud 1/22/04, press release #36 2/19/04 (C) Charged in a superseding indictment with conspiracy to Department of Justice, commit securities fraud, 20 counts of securities fraud, 2/19/04, press release #99 eight counts of wire fraud, and two counts of insider trading 12/28/05 (G) Pleads guilty to securities fraud Department of Justice, 12/28/05, press release #695 Jeffrey K. Skilling (CEO) 2/19/04 (C) Charged with conspiracy to commit securities fraud, 20 Department of Justice, counts of securities fraud, four counts of wire fraud, and 2/19/04, press release #99 10 counts of insider trading 5/25/06 (G) A federal jury convicted Skilling on 12 counts of Department of Justice, securities fraud, one count of insider trading, and five 5/25/06, press release #328 counts of making false statements to auditors. CRS-9 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) Kenneth L. Lay (chairman and CEO) 7/8/04 (C) Charged with conspiracy to commit securities fraud, four Department of Justice, counts of securities fraud, two counts of wire fraud, one 7/8/04, press release #470 count of bank fraud, and three counts of making false statements to a bank 5/25/06 (G) A federal jury convicted Lay on two counts of wire fraud Department of Justice, and three counts of securities fraud. He was also 5/25/06, press release #328 convicted at a separate bench trial of one count of bank fraud and three counts of making false statements to banks. Mark Koenig (executive vice president) 8/25/04 (G) Koenig pleaded guilty to securities fraud . If he abides by Department of Justice the terms of his plea agreement, Koenig faces the 8/25/04, press release #581 statutory maximum sentence of 10 years in prison and a fine of $1 million at this sentencing, which will be scheduled by the court at a later date. Timothy Despain (assistant treasurer) 10/5/04 (G) Despain pleaded guilty to one count of securities fraud Department of Justice, and faces a maximum of five years in prison and a fine of 10/5/04, press release #682 $250,000 or twice the loss. Christopher Calger (vice president) 7/14/05 (G) Calger pleaded guilty to a charge of conspiracy to commit Department of Justice, wire fraud. 7/14/05, press release #372 CRS-10 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) HealthSouth Weston Smith (chief financial officer) 3/19/03 (G) Securities fraud and wire fraud Department of Justice, 3/19/03, press release #165 William T. Owens (chief of financial 3/26/03 (G) Conspiracy to commit wire fraud and securities fraud Department of Justice, operations) 3/26/03, press release #180 Emery Harris (vice president of finance) 3/31/03 (G) Conspiracy to commit wire fraud and securities fraud. Department of Justice, Sentenced to a term of five months in prison on each 3/31/03, press release #198 count to run concurrently, three years of supervised release with five months of unsupervised home detention, Department of Justice, and payment of a $3,000 fine. 12/10/03, press release #678 Kenneth Livesay (chief information officer) 4/3/03 (G) Conspiracy to commit wire fraud and securities fraud and Department of Justice, to falsify financial information 4/3/03, press release #205 Angela C. Ayers (vice president) 4/3/03 (G) All charged with wire fraud and conspiracy to commit Department of Justice, wire fraud and securities fraud. All sentenced to four 4/3/03, press release #205 years of probation with six months unsupervised home Cathy C. Edwards (vice president) 4/3/03 (G) confinement and payment of a $2,000 fine. Rebecca Kay Morgan (group vice president) 4/3/03 (G) Department of Justice, 12/10/03, press release #678 Virginia B. Valentine (assistant vice president) 4/3/03 (G) CRS-11 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) Michael Martin (chief financial officer) 4/8/03 (C) Conspiracy to commit wire fraud and securities fraud Department of Justice, 4/8/03, press release #212 Malcolm McVay (treasurer) 4/21/03 (G) Conspiracy to commit wire fraud and securities fraud Department of Justice, 4/21/03, press release #245 Aaron Beam (chief financial officer) 4/24/03 (G) Bank fraud Department of Justice, 4/24/03, press release #255 Jason Brown (vice president of finance) 7/8/03 (G) Conspiracy to commit securities fraud, falsifying books Department of Justice, and records, and wire fraud 7/8/03, press release #401 Richard Botts (senior vice president) 7/31/03 (G) Conspiracy to commit securities fraud, falsifying books, Department of Justice, and mail fraud 7/31/03, press release #436 Will Hicks (vice president) 7/31/03 (G) Conspiracy to make false statements to auditors and maintain false books and records CRS-12 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) Richard M. Scrushy (CEO and chairman of the 11/4/03 (C) Charged in an 85-count indictment stemming from a Department of Justice, board) wide-ranging scheme to defraud investors, the public, and 11/4/03, press release #603 the U.S. government about HealthSouth's financial condition 9/29/04 (C) A federal grand jury returned a 58-count superseding Department of Justice, indictment adding charges of obstruction of justice and 9/29/04, press release #654 perjury and consolidating some of the other charges from the initial indictment, which included conspiracy, mail, wire and securities fraud, false statements, false certifications, and money laundering. 6/28/05 (A) Richard M. Scrushy was acquitted on all 36 counts that he New York Times, 6/29/05, was charged with. sec. A, p. 1, col. 1 Catherine Fowler (vice president) 11/24/03 (G) Conspiring to mislead the auditors and to maintain false New York Times, 11/25/03, books and records sec. C, p. 3, col. 1 Vincent Nico (vice president) 3/2/04 (G) Wire fraud related to contracts with a hospital in Saudi Department of Justice Arabia 3/2/04, press release #131 Thomas Carman (executive vice president) 3/2/04 (G) Making a false statement to the FBI Department of Justice 3/2/04, press release #131 CRS-13 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) ImClone Systems Samuel Waksal (chief executive)a 8/7/02 (I) Trading on inside information New York Times 8/8/02, sec. A, p. 1, col. 1; 10/15/02 (G) Sentenced to 87 months in prison and ordered to pay a $3 6/11/03, sec. C, p. 1, col. 5; million fine 10/16/02, sec. C, p. 1, col. 2 Just for Feet, Inc. Adam Gilburne (executive) 5/12/03 (G) Conspiracy to commit wire fraud and securities fraud Department of Justice, 5/12/03, press release #283 Don-Allen Ruttenberg (executive vice 2/25/04 (G) Conspiracy to commit securities fraud, wire fraud, and Department of Justice, president) submitting false statements to the auditors of JFF 2/25/04, press release #110 Kmart Joseph A. Hofmeister (vice president) 2/26/02 (I) Fraud, conspiracy, and making false statements New York Times, 2/27/03, sec. C, p. 1, col. 5 Enio A. Montini Jr. (senior vice president) 2/26/02 (I) CRS-14 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) Martha Stewart Living Omnimedia Martha Stewart (chairman and CEO)a 6/4/03 (I) Conspiracy, obstruction of justice, and securities fraud New York Times, 6/5/03, sec. A, p. 1, col. 2 3/5/04 (G) Found guilty of four counts of conspiracy, obstruction, New York Times, 3/6/04, and lying to federal investigators sec. A, p. 1, col. 6 7/16/04 (G) Sentenced to five months in prison plus five months of New York Times, 7/17/04, home confinement sec. A, p. 1, col. 2 Peter Bacanovic (securities broker) 6/4/03 (I) Criminal charges, including perjury New York Times, 6/5/03, sec. A, p. 1, col. 2 3/5/04 (G) Criminal charges, including perjury New York Times, 3/6/04, sec. A, p. 1, col. 6 Merrill Lynch Douglas Faneuil (stockbroker) 10/2/02 (G) Pleaded guilty to obstruction of justice related to insider New York Times, 10/3/02, trading of ImClone Systems sec. C, p. 1, col. 2 Daniel Bayly (head of Global Investment 9/17/03 (I) Conspiracy to commit wire fraud and to falsify books and Department of Justice, Banking division) records 9/17/03, press release #510 James A. Brown (head of Merrill Lynch's 11/3/04 (C) Convicted of conspiring to help Enron report bogus New York Times, 11/4/04, Strategic Asset Lease and Finance group) profits sec. C, p. 1, col. 5 Robert S. Furst (Enron relationship manager for Merrill Lynch) CRS-15 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) Mutuals.com Richard A. Sapio (CEO) 3/15/04 (C) Charged with a scheme to defraud mutual fund Wall Street Journal, shareholders in connection with market timing, a practice 3/16/04, sec. D, p. 9 Eric McDonald (president) involving the short-term trading of mutual funds Michele Leftwich (compliance officer) NatWest Bank Giles R. Darby (banker) 6/27/02 (C) All three are British bankers charged with wire fraud in New York Times, 6/28/02, connection with Enron's off-the-books partnerships sec. C, p. 1, col. 2 David J. Bermingham (banker) 6/27/02 (C) Department of Justice, Gary S. Mulgrew (banker) 6/27/02 (C) 6/27/02, press release #377 NewCom Inc. Sultan W. Khan (president and chief 9/5/02 (I) Fraud, money laundering, filing false statements, and New York Times, 9/6/02, executive) conspiracy sec. C, p. 4, col. 3 Asif M. Khan (executive vice president) 9/5/02 (I) Steven C. Veen (chief financial officer) 9/5/02 (I) CRS-16 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) Quaker Alloy Thomas W. Lambach (chief financial officer) 4/3/02 (G) Wire fraud and conspiracy Harrisburg (PA) Patriot- News, 4/4/02, p. B12 Joseph Stewart (human resource manager) 4/3/02 (G) Qwest Communications Grant Graham (chief financial officer) 2/25/03 (I) Corporate accounting fraud Department of Justice, 2/25/03, press release #112 Thomas Hall (senior vice president) 4/16/04 A federal jury acquitted John Walker and Bryan New York Times, 4/17/04, Treadway of accounting fraud, found Grant Graham not sec. C, p. 2, col. 5 guilty on three counts and deadlocked on the eight other John Walker (vice president) counts facing him, and completely deadlocked on all counts against Tom Hall. Judge Robert Blackburn Bryan Treadway (assistant controller) declared a mistrial on all deadlocked counts and scheduled a status conference for April 26. CRS-17 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) Rite Aid Martin L. Grass (chairman and chief 6/23/02 (G) Various counts of securities fraud New York Times, executive) 5/14/04 (G) 6/22/02, sec. A, p. 1, col. 1; 6/6/03, sec. C, p. 3, col. 3; Franklin Brown (chief counsel and vice 6/23/02 (G) Grass signed a plea deal with prosecutors under which he 6/18/03, sec. C, p. 12, col. 3; chairman) 10/14/04 (G) will serve up to 10 years in prison , pay $500,000 in fines, 6/26/03, sec. C, p. 6, col. 3; and forfeit $3 million to the United States to ensure that 10/18/03, sec. C, p. 2, col. 1 he does not receive unjust enrichment 5/14/04, sec. C, p.10, col. 1 10/15/04, sec. C, p. 3, col. 1 Franklyn Bergonzi (chief financial officer) 6/23/02 (G) Brown was sentenced to 10 years in prison Erik S. Sorkin (executive vice president) 6/23/02 (G) Lying to the grand jury Timothy J. Noonan (president and chief 7/10/02 (G) Withholding information from the company's internal Lancaster (PA) Intelligencer operations officer) investigators Journal, 7/11/02, sec. Business, p. B-7 Philip Markovitz (senior vice president) 7/11/2003 (G) Conspiracy to obstruct justice New York Times, 7/11/03, sec. C, p. 12, col. 1 CRS-18 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) Tyco International L. Dennis Kozlowski (chairman and chief 9/12/02 (I) Grand larceny, enterprise corruption, falsifying records. New York Times, executive) Kozlowski was also indicted June 4, 2002, for sales tax 9/13/02, sec. A, p. 1, col. 3; evasion, as was Swartz on February 19, 2003. 6/5/02, sec. C, p. 1, col. 2; 2/20/03, sec. C, p. 6, col. 3 6/17/05 (G) L. Dennis Kizlowski and Mark H. Swartz were convicted 6/18/05, sec. A, p. 1, col. 6 on fraud, conspiracy, and grand larceny charges. Mark H. Swartz (chief financial officer) 9/12/02 (I) 6/17/05 (G) Mark Belnick (general counsel) 9/12/02 (I) Falsifying records New York Times, 9/13/02, sec. A, p. 1. col. 3; 2/3/03 (I) Indicted on three additional charges New York Times, 2/4/03, sec. C, p. 1., col. 2 7/16/04 (A) A jury acquitted Belnick of charges that he stole millions New York Times, 9/16/04, of dollars from Tyco in the form of unauthorized bonuses sec. C, p. 1, col. 2 and loans. He still faces charges brought forth by the SEC. CRS-19 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) Westar Energy, Inc. David C. Wittig (CEO) 12/4/03 (I) Conspiracy to defraud, circumventing internal accounting Department of Justice, controls, falsifying books and records, wire fraud, 12/4/03, submitting false statements, and engaging in monetary press release #663 transactions derived from an unlawful activity Douglas T. Lake (executive vice president) 9/12/05 (G) David C. Wittig was found guilty of 39 counts and New York Times, 9/13/05, Douglas T. Lake was found guilty of 30 counts of sec. C, col. 4, p. 12 conspiracy, wire fraud, circumventing internal controls, and money laundering. WorldCom Scott Sullivan (chief financial officer) 8/27/02 (I) Numerous counts of securities fraud and conspiracy Department of Justice, 8/27/02, press release #494 3/2/04 (G) Pleaded guilty New York Times, 3/3/04, sec. A, p. 1, col. 5 Buford Yates, Jr. (director of general 8/27/02 (I) Securities fraud Department of Justice, accounting) 8/27/02, press release #494; 10/7/02 (G) New York Times, 10/8/02, sec. C, p. 9, col. 1 David Myers (former controller) 9/26/02 (G) Securities fraud New York Times, 9/27/02, sec. C, p. 2, col. 3 CRS-20 Charged (C), Indicted (I), Company/Individual Charges Sources Guilty Plea (G), Acquitted (A) Betty Vinson (an executive in the General 10/10/02 (G) Securities fraud and conspiracy New York Times, 10/11/02, Accounting Department) sec. C, p. 10, col. 1 Troy Normand (an executive in the General 10/10/02 (G) Accounting Department) Bernard J. Ebbers (chief executive) 3/2/04 (I) Accounting fraud New York Times, 3/3/04, sec. A, p. 1, col. 5 3/15/05 (G) Ebbers was found guilty of securities fraud, conspiracy, and seven counts of filing false reports with regulators. New York Times, 3/16/05, Each count carries a sentence of 5 to 10 years. sec. A, p. 1, col. 1 Note: A few of these cases have also resulted in civil indictments. ------------------------------------------------------------------------------ For other versions of this document, see http://wikileaks.org/wiki/CRS-RL31866