We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
Enterasys Networks execs jailed for accounting fraud

Enterasys Networks execs jailed for accounting fraud

Accounting fraud 'very much in past' says company

Article comments

Four former executives, who worked at the computer networking and security vendor Enterasys Networks, have been sentenced to prison terms for their roles in accounting fraud at the company that cost investors millions of dollars, the US Department of Justice (DOJ) announced.

The executives were convicted on conspiracy and fraud charges during a December 2006 trial. At sentencing hearings that began last week Judge Paul Barbadoro sentenced former Enterasys Chief Financial Officer Robert J. Gagalis to 11 years in prison. Gagalis was convicted of one count of conspiracy, two counts of securities fraud, one count of making false statements to auditors of a public company and four counts of wire fraud.

Bruce D. Kay, a former Enterasys finance executive, was sentenced to 9 years in prison. The jury found Kay guilty of one count of conspiracy, two counts of securities fraud, one count of falsifying books and records of a public company, one count of making false statements to auditors of a public company and three counts of wire fraud.

Robert G. Barber, a former Enterasys business development executive, was sentenced to eight years in prison and fined $25,000. The jury found Barber guilty of conspiracy, two counts of securities fraud, one count of falsifying books and records of a public company and one count of making false statements to auditors of a public company.

Hor Chong "David" Boey, former finance executive in Enterasys' Asia Pacific division, was sentenced to three years in prison. Boey was convicted of conspiracy, two counts of securities fraud, one count of falsifying books and records of a public company, one count of making false statements to auditors of a public company and two counts of wire fraud.

Starting in mid-2001, the four defendants and other Enterasys executives inflated the company's revenue figures as a way to meet expectations of financial analysts and to maintain or increase the price of the company's stock, the DOJ said.

Share:

Comments

Advertisement
Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.


ComputerworldUK Knowledge Vault

ComputerworldUK
Share
x
Open
* *