Saturday, May 08, 2004

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.

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