HARTFORD, Conn. -- Another alleged tale of corporate greed is scheduled to unfold in federal court next week when leaders of Cendant Corp. go on trial on charges they committed a massive accounting fraud that cost shareholders billions.
Cendant's former chairman, Walter Forbes and former vice chairman, E. Kirk Shelton, are accused of inflating revenue by $500 million at Cendant's predecessor, CUC International, to drive up the stock price.
The fraud was reported in 1998, causing CUC's market value to drop by $14 billion in one day.
Posting this one just 'cause my brother-in-law works for Cendant & the company that Buttons & Pal A used to work for dealt with them a lot. So, it's strictly personal and not all that startlingly interesting, except that one company lost, in one day, value probably greater than the GNP of any number of small- & medium-sized third world countries. Untangle that one and then nod your head in sagelike consent.
Cendant's former chairman, Walter Forbes and former vice chairman, E. Kirk Shelton, are accused of inflating revenue by $500 million at Cendant's predecessor, CUC International, to drive up the stock price.
The fraud was reported in 1998, causing CUC's market value to drop by $14 billion in one day.
Posting this one just 'cause my brother-in-law works for Cendant & the company that Buttons & Pal A used to work for dealt with them a lot. So, it's strictly personal and not all that startlingly interesting, except that one company lost, in one day, value probably greater than the GNP of any number of small- & medium-sized third world countries. Untangle that one and then nod your head in sagelike consent.
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