ExecuCite Blogger Archive

1.                 Kenneth Lay – The former Enron founder has been battling hard during 2005 to prove that he “knew nothing” about his companies woes.  This week he got another Christmas present when his CAO Richard Causey decided to plead guilty and cooperate with the investigation.  Not good news for Jeffrey Skilling, former CEO either.

 2.                 Richard Scrushy – the HealthSouth founder who was found innocent of criminal charges in June faces new legal battles.  His company has filed suit for $76 million in back salary, bonuses and stock awards.  And the SEC has filed civil charges with a court date set for April 2007.  Not surprising, he resigned from HealthSouth’s Board of Directors this month and has filed his own lawsuit claiming breach of contract. 

 3.                 Conrad Black – former chairman and CEO of Hollinger International faced an arrest warrant this year.  The member of the House of Lords is charged with helping to steal more $51 million from his company.  In the past year, he has mortgaged his Toronto estate, sold his London townhouse, and his private holding company Ravelston is in receivership.  He also is facing charges brought by the SEC.

 4.                 Phillip Bennett – former CEO of Refco plead innocent to conspiracy charges.  Refco went public in August and filed for bankruptcy protection in October after it disclosed a $430 million debt to the company from Mr. Bennett. 

 5.                 Joseph Nacchio – the former Qwest CEO was indicted on 42 counts of insider trading.  As the story goes, it seems that when Mr. Nacchio discovered that his company would not make its forecast, he sold lots of stock ($101 million). Mr. Nacchio has pleaded not guilty and remains free on bond. He also faces fraud charges filed by the Securities and Exchange Commission and a number of shareholder lawsuits

 6.                 The family Riggs – father John, sons Michael and Timothy – former executives of Adelphia Communications.  John and Timothy were convicted of conspiracy, bank and securities fraud and face prison terms.  They remain free pending appeal.  Son Michael pleaded guilty to a lesser charge in order not to face a retrial on securities and bank fraud charges. 

 7.                 Bernard Ebbers – the former CEO of WorldCom was sentenced in July to 25 years in prison for his role in the collapse of the company.  Mr. Ebbers remains free pending appeal.

 8.                 E. Kirk Shelton – former Cendant Corporation Vice Chairman who convicted of conspiracy and securities, wire and mail fraud and received a ten year jail sentence.  The court ordered Shelton to pay more than $3.27 billion to Cendant, including an initial payment of $15 million and monthly payments of $2,000 per month once he is out of prison.  Mr. Shelton is free pending his appeal.  He made news again this December when he asked for the court’s permission to visit friends recovering from injuries sustained in a plane crash.  The friends have been recovering for months and prosecutors queried whether the request was merely an excuse for a vacation.  Seems the friends are recuperating in Vail.

 9.                 Dennis Kozlowski – former Tyco CEO and Mark Swartz – former CFO escaped their first trial in 2004 after a mistrial was declared.  In June of this year, they were convicted on 22 counts each of grand larceny, conspiracy, securities fraud and falsifying business records.  Sentenced in September to 8 to 25 years, these two remain behind bars pending their appeals.

 10.             Martha Stewart – founder of Martha Stewart Living et. al. – convicted last year of conspiracy, obstruction of justice and lying to investigators was released from jail in March and from house arrest in August.  She rebounded to give us her version of the “Apprentice” on TV.  

HAPPY NEW YEAR!!

The Staff at ExecuCite.com wish you great fortune and success!