Criminal Charges in Corporate Scandals

CRS Report for Congress
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 107^th 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
In troduction ......................................................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),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
phia Communications
. 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
ⁱ^{ki/CRS-RL31866}mothy Rigas (chief financial officer)9/23/02 (C)John Rigas and Timothy Rigas were found guilty of oneNew York Times, 7/9/04,
^g/w7/8/04 (G)count of conspiracy, 15 counts of securities fraud, andsec. A, p. 1, col. 1
^s^.ortwo counts of bank fraud.
^le^ak
^://wiki6/20/05 (G)John Rigas was sentenced to 15 years in prison, andTimothy Rigas was sentenced to 20 years in prison.New York Times, 6/21/05,sec. C, p. 1, col. 6
^h^ttp
igas (executive vice president)9/23/02 (C)Michael Rigas was acquitted of conspiracy and wireNew York Times, 7/10/04,
fraud, but the jurors said they were still undecided on thesec. 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.
mes 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),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
. Mulcahey (director of internal9/23/02 (C)Michael C. Mulcahey was acquitted on all counts.New York Times, 9/24/02,
)7/8/04 (A)sec. C, p. 1, col. 5
mothy Werth (director of accounting)01/10/03 (G)Securities fraud, wire fraud, and bank fraudNew York Times, 1/11/03,
sec. C, p. 3, col. 1
thur Andersen
ⁱ^{ki/CRS-RL31866}
^g/wid Duncan (former partner)4/10/02 (G)Obstruction of justice (related to Enron audit). ArthurNew York Times, 4/11/02,
^s^.orAndersen (the firm) was convicted on the same charge insec. A, p. 1, col. 2
^le^akJune 2002.
^://wikiarter Communications
^h^ttp
ent 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
vid Barford (chief operating officer)
mes Smith (senior vice president)
id McCall (executive)7/25/03 (G)Conspiracy to commit wire fraudNew York Times, 7/26/03,
sec. C, p. 2, col. 3

CRS-4
Charged (C),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
irst Boston
P. Quattrone (banker)5/12/03 (I)Obstruction of justice and destroying evidenceNew York Times, 5/13/03,
sec. C, p. 1, col. 2

10/24/03 A federal judge declared a mistrial in the obstruction ofNew York Times, 10/25/03,

justice trial of Frank P. Quattrone.sec. A, p. 1, col. 1
ⁱ^{ki/CRS-RL31866}12/2/03A federal judge set a March 22, 2004, date for the secondNew York Times, 12/2/03,
^g/wtrial of Frank P. Quattrone.sec. C, p. 5, col. 1
^s^.or
^le^ak5/3/04 (G)Quattrone was found guilty of trying to impedeNew York Times, 5/4/04,
government investigations into how stock offerings weresec. A, p. 1, col. 6
^://wikidoled out to investors.
^h^ttp9/8/04Quattrone was sentenced to 18 months in prison and finedNew York Times, 9/9/04,
$90,300.sec. A, p. 1, col. 1
ne S. Foster (vice president)8/5/03 (G)Conspiracy to commit securities fraudNew York Times, 8/6/03,
sec. C, p. 4, col. 1
ey (accounting manager)

CRS-5
Charged (C),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
mie Olis (director for tax planning)8/5/03 (I) Conspiracy to commit securities fraudNew York Times, 8/6/03,
sec. C, p. 4, col. 1

3/25/04 (G)A federal judge sentenced Jamie Olis to more than 24New York Times, 3/26/04,

years in prison for his role in a secretive project tosec. C, p. 2, col. 1
disguise Dynegy’s financial difficulties. He had been
found guilty in November 2003.
ⁱ^{ki/CRS-RL31866}
^g/wron Corp.
^s^.or
^le^akopper (finance executive)8/21/02 (G)Conspiracy to commit wire fraud and money launderingNew York Times, 8/22/02,
sec. A, p. 1, col. 6
^://wiki Fastow (chief financial officer)10/2/02 (C)Charged with securities fraud, wire fraud, mail fraud,Department of Justice,
^h^ttpmoney laundering, and conspiracy10/2/02, press release #568^a;
10/31/02 (I)Indicted by a grand jury on 78 counts of fraud, money10/31/02, press release
laundering, and conspiracy#627;
5/1/03 (I)Charged with insider trading and tax fraud5/1/03, press release #268
1/14/04 (G)Under the terms of a plea agreement, Fastow will1/14/04, 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.
othy N. Belden (senior trader)10/17/02 (G)Pleaded guilty to engaging in a conspiracy that illegallyNew York Times, 10/18/02,
manipulated the California power marketsec. C, p. 1, col. 5

CRS-6
Charged (C),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
wrence M. Lawyer (finance executive)11/26/02 (G)Pleaded guilty to filing a false income tax return andDepartment of Justice,
failing to report taxable income11/26/02, press release #696
ffrey Ricter (senior trader)2/4/03 (G)Pleaded guilty to manipulating the California powerNew York Times, 2/5/03,
marketsec. C, p. 2, col. 4
evin Howard (Enron Broadband Services3/12/03 (I)Charged with securities fraud, wire fraud, conspiracy, andDepartment of Justice,
ⁱ^{ki/CRS-RL31866}S] vice president of finance)5/1/03 (I)making false statements to FBI agents3/12/03, press release #153
^g/w
^s^.or (EBS senior director of3/12/03 (I)Department of Justice,
^le^ak)5/1/03 (I)5/1/03, press release #268
^://wiki
^h^ttpn Gilsan (treasurer)5/1/03 (I)Securities fraud, insider trading, and tax fraudDepartment of Justice,
5/1/03, press release #268

9/10/03 (G)Pleaded guilty to conspiracy to commit wire andDepartment of Justice,

securities fraud and was sent to prison to serve a five-year9/10/03, press release #492
sentence.
n Boyle (finance executive)5/1/03 (I)Securities fraud, insider trading, and tax fraudDepartment of Justice,
5/1/03, press release #268

11/3/04 (G)Convicted of conspiring to help Enron report bogusNew York Times, 11/4/04,

profitssec. C, p. 1, col. 5

CRS-7
Charged (C),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
ice (EBS chairman)5/1/03 (I)Securities fraud, wire fraud, and money launderingDepartment of Justice,
5/1/03, press release #268

7/30/04 (G)Pleaded guilty to securities fraud and agreed to cooperateDepartment of Justice,

fully with the government’s ongoing criminal7/30/04, press release #525
investigation into the collapse of Enron. As part of his
plea, Rice has agreed to the forfeiture of approximately
ⁱ^{ki/CRS-RL31866}$13.7 million to be used to compensate victims of the
^g/wEnron fraud and to pay an additional fine of $1 million.
^s^.or
^le^akseph Hirko (EBS president)5/1/03 (I)Securities fraud, wire fraud, and money launderingDepartment of Justice,
eager (EBS senior vice president)5/1/03, press release #268
^://wiki (EBS senior vice president)
^h^ttp
in Hannon (EBS chief operating officer)8/31/04 (G)Kevin Hannon pleaded guilty to conspiracy to commitDepartment of Justice,
securities and wire fraud. He faces a maximum sentence8/31/04, 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.

5/1/03 (I)Conspiracy to commit wire fraud, money launderingDepartment of Justice,

conspiracy, and filing false tax returns5/1/03, 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 of5/6/04, 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),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
(trader)6/3/03 (C)Charged with manipulating the California power marketNew York Times, 6/4/03,
sec. C, p. 6, col. 3
id Delainey (CEO of Enron North America10/30/03 (G)Pleaded guilty to a one-count indictment charging himDepartment of Justice
y Services)with insider trading10/30/03 press release #594
chard Causey (chief accounting officer)1/22/04 (C)Charged with five counts of securities fraud and oneDepartment of Justice,
ⁱ^{ki/CRS-RL31866}count of conspiracy to commit securities fraud1/22/04, press release #36
^g/w
^s^.or2/19/04 (C)Charged in a superseding indictment with conspiracy toDepartment of Justice,
^le^akcommit securities fraud, 20 counts of securities fraud,2/19/04, press release #99
eight counts of wire fraud, and two counts of insider
^://wiki trading
^h^ttp12/28/05 (G)Pleads guilty to securities fraudDepartment of Justice,
12/28/05, press release #695
ffrey K. Skilling (CEO)2/19/04 (C)Charged with conspiracy to commit securities fraud, 20Department of Justice,
counts of securities fraud, four counts of wire fraud, and2/19/04, press release #99
10 counts of insider trading

5/25/06 (G)A federal jury convicted Skilling on 12 counts ofDepartment of Justice,

securities fraud, one count of insider trading, and five5/25/06, press release #328

counts of making false statements to auditors.

CRS-9
Charged (C),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
enneth L. Lay (chairman and CEO)7/8/04 (C)Charged with conspiracy to commit securities fraud, fourDepartment of Justice,
counts of securities fraud, two counts of wire fraud, one7/8/04, 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 fraudDepartment of Justice,

ⁱ^{ki/CRS-RL31866}and three counts of securities fraud. He was also5/25/06, press release #328
^g/wconvicted at a separate bench trial of one count of bank
^s^.orfraud and three counts of making false statements to
^le^ak banks.
^://wiki Koenig (executive vice president)8/25/04 (G)Koenig pleaded guilty to securities fraud . If he abides byDepartment of Justice
^h^ttpthe terms of his plea agreement, Koenig faces the8/25/04, 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.
mothy Despain (assistant treasurer)10/5/04 (G)Despain pleaded guilty to one count of securities fraudDepartment of Justice,
and faces a maximum of five years in prison and a fine of10/5/04, press release #682
$250,000 or twice the loss.
ristopher Calger (vice president)7/14/05 (G)Calger pleaded guilty to a charge of conspiracy to commitDepartment of Justice,
wire fraud.7/14/05, press release #372

CRS-10
Charged (C),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
ealthSouth
mith (chief financial officer) 3/19/03 (G) Securities fraud and wire fraudDepartment of Justice,
3/19/03, press release #165
T. Owens (chief of financial3/26/03 (G)Conspiracy to commit wire fraud and securities fraudDepartment of Justice,
3/26/03, press release #180
ⁱ^{ki/CRS-RL31866}
^g/wery Harris (vice president of finance)3/31/03 (G)Conspiracy to commit wire fraud and securities fraud. Department of Justice,
^s^.orSentenced to a term of five months in prison on each3/31/03, press release #198
^le^akcount to run concurrently, three years of supervised
Department of Justice,
^://wikirelease with five months of unsupervised home detention,and payment of a $3,000 fine.12/10/03, press release #678
^h^ttp
ivesay (chief information officer)4/3/03 (G)Conspiracy to commit wire fraud and securities fraud andDepartment of Justice,
to falsify financial information4/3/03, press release #205
ela C. Ayers (vice president)4/3/03 (G)All charged with wire fraud and conspiracy to commitDepartment of Justice,
wire fraud and securities fraud. All sentenced to four4/3/03, press release #205
years of probation with six months unsupervised home
confinement and payment of a $2,000 fine. C. Edwards (vice president)4/3/03 (G)
ay Morgan (group vice president)4/3/03 (G)Department of Justice,
12/10/03, press release #678
inia B. Valentine (assistant vice president)4/3/03 (G)

CRS-11
Charged (C),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)

4/8/03 (C)Conspiracy to commit wire fraud and securities fraudDepartment of Justice,

4/8/03, press release #212
McVay (treasurer)4/21/03 (G)Conspiracy to commit wire fraud and securities fraudDepartment of Justice,
4/21/03, press release #245
(chief financial officer)4/24/03 (G)Bank fraudDepartment of Justice,
ⁱ^{ki/CRS-RL31866}4/24/03, press release #255
^g/w
^s^.orson Brown (vice president of finance)7/8/03 (G)Conspiracy to commit securities fraud, falsifying booksDepartment of Justice,
^le^akand records, and wire fraud7/8/03, press release #401
^://wikichard Botts (senior vice president)7/31/03 (G)Conspiracy to commit securities fraud, falsifying books,Department of Justice,
^h^ttpand mail fraud7/31/03, press release #436
icks (vice president)7/31/03 (G)Conspiracy to make false statements to auditors and
maintain false books and records

CRS-12
Charged (C),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
(CEO and chairman of the11/4/03 (C)Charged in an 85-count indictment stemming from aDepartment of Justice,
wide-ranging scheme to defraud investors, the public, and11/4/03, press release #603
the U.S. government about HealthSouth’s financial
condition

9/29/04 (C)A federal grand jury returned a 58-count supersedingDepartment of Justice,

ⁱ^{ki/CRS-RL31866}indictment adding charges of obstruction of justice andperjury and consolidating some of the other charges from9/29/04, press release #654
^g/wthe initial indictment, which included conspiracy, mail,
^s^.or
^le^akwire and securities fraud, false statements, false
certifications, and money laundering.
^://wiki6/28/05 (A)Richard M. Scrushy was acquitted on all 36 counts that heNew York Times, 6/29/05,
^h^ttpwas charged with.sec. A, p. 1, col. 1
therine Fowler (vice president)11/24/03 (G)Conspiring to mislead the auditors and to maintain falseNew York Times, 11/25/03,
books and recordssec. C, p. 3, col. 1
incent Nico (vice president)3/2/04 (G)Wire fraud related to contracts with a hospital in SaudiDepartment of Justice
Arabia3/2/04, press release #131
as Carman (executive vice president)3/2/04 (G)Making a false statement to the FBIDepartment of Justice

3/2/04, press release #131

CRS-13
Charged (C),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
lone Systems
uel Waksal (chief executive)^a8/7/02 (I)Trading on inside informationNew York Times

8/8/02, sec. A, p. 1, col. 1;

6/11/03, sec. C, p. 1, col. 5; 10/15/02 (G)Sentenced to 87 months in prison and ordered to pay a $3
10/16/02, sec. C, p. 1, col. 2million fine
ⁱ^{ki/CRS-RL31866}or Feet, Inc.
^g/w
^s^.oram Gilburne (executive)5/12/03 (G)Conspiracy to commit wire fraud and securities fraudDepartment of Justice,
^le^ak5/12/03, press release #283
^://wikiAllen Ruttenberg (executive vice2/25/04 (G)Conspiracy to commit securities fraud, wire fraud, andDepartment of Justice,
^h^ttpsubmitting false statements to the auditors of JFF2/25/04, press release #110
seph A. Hofmeister (vice president)2/26/02 (I)Fraud, conspiracy, and making false statementsNew York Times, 2/27/03,
sec. C, p. 1, col. 5
r. (senior vice president)2/26/02 (I)

CRS-14
Charged (C),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
ha Stewart Living Omnimedia
an and CEO)^a6/4/03 (I)Conspiracy, obstruction of justice, and securities fraudNew 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 investigatorssec. A, p. 1, col. 6
ⁱ^{ki/CRS-RL31866}7/16/04 (G)Sentenced to five months in prison plus five months ofNew York Times, 7/17/04,
^g/whome confinementsec. A, p. 1, col. 2
^s^.or
^le^akter Bacanovic (securities broker)6/4/03 (I)Criminal charges, including perjuryNew York Times, 6/5/03,
^://wikisec. A, p. 1, col. 2
^h^ttp3/5/04 (G)Criminal charges, including perjuryNew York Times, 3/6/04,
sec. A, p. 1, col. 6
ynch
las Faneuil (stockbroker)10/2/02 (G)Pleaded guilty to obstruction of justice related to insiderNew York Times, 10/3/02,
trading of ImClone Systemssec. C, p. 1, col. 2
ly (head of Global Investment9/17/03 (I)Conspiracy to commit wire fraud and to falsify books andDepartment of Justice,
ing division)records9/17/03, press release #510
mes A. Brown (head of Merrill Lynch’s11/3/04 (C)Convicted of conspiring to help Enron report bogusNew York Times, 11/4/04,
ic Asset Lease and Finance group)profitssec. C, p. 1, col. 5
anager
ynch)

CRS-15
Charged (C),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)

3/15/04 (C)Charged with a scheme to defraud mutual fundWall Street Journal,

shareholders in connection with market timing, a practice3/16/04, sec. D, p. 9
involving the short-term trading of mutual funds
ich (compliance officer)
ⁱ^{ki/CRS-RL31866}
^g/wtWest Bank
^s^.or
^le^ak. Darby (banker)6/27/02 (C)All three are British bankers charged with wire fraud inNew York Times, 6/28/02,
connection with Enron’s off-the-books partnershipssec. C, p. 1, col. 2
^://wikiid J. Bermingham (banker)6/27/02 (C)
^h^ttpDepartment of Justice,

6/27/02, press release #377 S. Mulgrew (banker)6/27/02 (C)

Com Inc.
han (president and chief9/5/02 (I)Fraud, money laundering, filing false statements, andNew York Times, 9/6/02,
e)conspiracysec. C, p. 4, col. 3
if M. Khan (executive vice president)9/5/02 (I)
en C. Veen (chief financial officer)9/5/02 (I)

CRS-16
Charged (C),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
aker Alloy
as W. Lambach (chief financial officer)4/3/02 (G)Wire fraud and conspiracyHarrisburg (PA) Patriot-
News, 4/4/02, p. B12
seph Stewart (human resource manager)4/3/02 (G)
est Communications
ⁱ^{ki/CRS-RL31866}
^g/w (chief financial officer)2/25/03 (I)Corporate accounting fraudDepartment of Justice,
^s^.or2/25/03, press release #112
^le^ak
as Hall (senior vice president)4/16/04A federal jury acquitted John Walker and BryanNew York Times, 4/17/04,
^://wikiTreadway of accounting fraud, found Grant Graham notsec. C, p. 2, col. 5
^h^ttpguilty on three counts and deadlocked on the eight otherer (vice president)
counts facing him, and completely deadlocked on all
counts against Tom Hall. Judge Robert Blackburn
declared a mistrial on all deadlocked counts andyan Treadway (assistant controller)

scheduled a status conference for April 26.

CRS-17
Charged (C),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
te Aid
an and chief6/23/02 (G)Various counts of securities fraudNew York Times,
e)5/14/04 (G)6/22/02, sec. A, p. 1, col. 1;

6/6/03, sec. C, p. 3, col. 3;

6/18/03, sec. C, p. 12, col. 3;lin Brown (chief counsel and vice6/23/02 (G)Grass signed a plea deal with prosecutors under which he
an)10/14/04 (G)will serve up to 10 years in prison , pay $500,000 in fines,
ⁱ^{ki/CRS-RL31866}6/26/03, sec. C, p. 6, col. 3;10/18/03, sec. C, p. 2, col. 1and forfeit $3 million to the United States to ensure that
^g/w5/14/04, sec. C, p.10, col. 1he does not receive unjust enrichment
^s^.or
^le^ak10/15/04, sec. C, p. 3, col. 1lyn Bergonzi (chief financial officer)6/23/02 (G)Brown was sentenced to 10 years in prison
^://wiki S. Sorkin (executive vice president)6/23/02 (G)Lying to the grand jury
^h^ttp
mothy J. Noonan (president and chief7/10/02 (G)Withholding information from the company’s internalLancaster (PA) Intelligencer
investigatorsJournal, 7/11/02, sec.
Business, p. B-7
ovitz (senior vice president)7/11/2003 (G)Conspiracy to obstruct justiceNew York Times, 7/11/03,
sec. C, p. 12, col. 1

CRS-18
Charged (C),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
co International
ozlowski (chairman and chief9/12/02 (I)Grand larceny, enterprise corruption, falsifying records. New York Times,
e)Kozlowski was also indicted June 4, 2002, for sales tax9/13/02, 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
ⁱ^{ki/CRS-RL31866}6/18/05, sec. A, p. 1, col. 6on fraud, conspiracy, and grand larceny charges.
^g/w
^s^.or H. Swartz (chief financial officer)9/12/02 (I)
^le^ak
^://wiki6/17/05 (G)
^h^ttp Belnick (general counsel)9/12/02 (I)Falsifying recordsNew York Times, 9/13/02,
sec. A, p. 1. col. 3;

2/3/03 (I)Indicted on three additional chargesNew York Times, 2/4/03,

sec. C, p. 1., col. 2

7/16/04 (A)A jury acquitted Belnick of charges that he stole millionsNew York Times, 9/16/04,

of dollars from Tyco in the form of unauthorized bonusessec. C, p. 1, col. 2

and loans. He still faces charges brought forth by the
SEC.

CRS-19
Charged (C),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
vid C. Wittig (CEO)12/4/03 (I)Conspiracy to defraud, circumventing internal accountingDepartment of Justice,
controls, falsifying books and records, wire fraud,12/4/03,
submitting false statements, and engaging in monetarypress release #663
transactions derived from an unlawful activity
ⁱ^{ki/CRS-RL31866}9/12/05 (G)David C. Wittig was found guilty of 39 counts andNew York Times, 9/13/05,las T. Lake (executive vice president)
^g/wDouglas T. Lake was found guilty of 30 counts ofsec. C, col. 4, p. 12
^s^.or
^le^akconspiracy, wire fraud, circumventing internal controls,
and money laundering.
^://wiki
^h^ttp
an (chief financial officer)8/27/02 (I)Numerous counts of securities fraud and conspiracyDepartment of Justice,
8/27/02, press release #494

3/2/04 (G)Pleaded guiltyNew York Times, 3/3/04,

sec. A, p. 1, col. 5
r. (director of general8/27/02 (I)Securities fraudDepartment of Justice,
) 8/27/02, press release #494;

10/7/02 (G)New York Times, 10/8/02,

sec. C, p. 9, col. 1
vid Myers (former controller)9/26/02 (G)Securities fraudNew York Times, 9/27/02,
sec. C, p. 2, col. 3

CRS-20
Charged (C),
Company/IndividualIndicted (I), Guilty Plea (G),ChargesSources
Acquitted (A)
Vinson (an executive in the General10/10/02 (G)Securities fraud and conspiracyNew York Times, 10/11/02,
Department)sec. C, p. 10, col. 1
oy Normand (an executive in the General10/10/02 (G)
Department)
. Ebbers (chief executive)3/2/04 (I)Accounting fraudNew York Times, 3/3/04,
ⁱ^{ki/CRS-RL31866}sec. A, p. 1, col. 5
^g/w3/15/05 (G)Ebbers was found guilty of securities fraud, conspiracy,
^s^.orand seven counts of filing false reports with regulators. New York Times, 3/16/05,
^le^akEach count carries a sentence of 5 to 10 years.sec. A, p. 1, col. 1
^://wiki
^h^ttp^A^f^e^w^of^th^es^{e cas}^es^h^a^v^e^als^o^res^u^{lted in}^civ^{il in}^dictm^eⁿ^t^s^.