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Third Time's the Charm?
Home » Accounting » Blog » Third Time's the Charm?Prosecutors are planning to try former Cendant Corp. chairman Walter Forbes for a 3rd time on charges that he participated in a monstrous fraud that cost investors more than $3 billion in greenbacks.
Forbes first two trips to court ended in mistrials when jurors couldn't reach conclusive verdicts...Forbes claiming he hadn't known anything about the fraud.
Jurors last year convicted Forbes' co-defendant, former Cendant Vice Chairman Kirk Shelton of wire fraud, conspiracy, mail fraud, securities fraud, and making false statements to the SEC. He was sentenced to 10 years in prison and ordered to pay $3.27 billion in restitutions to Cendant, including a $15 million balloon payment and $2000 monthly installments once he's released from prison. Ouch.
The Cendant prosecutions are among the first in a series of corporate scandals in recent years that have sparked outrage from investors. As of now, there's no word on whether Forbes is going to try out the "Liar, liar, pants on fire" defense this time around.
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