Order Code RL31866
CRS Report for Congress
Received through the CRS Web
Criminal Charges in Corporate Scandals
Updated January 10, 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

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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.
The 107th 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).
This report will be updated regularly.

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Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
List of Tables
Table 1. List of Charges, Indictments, and Guilty Pleas in Corporate
Scandals Since Enron . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

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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.

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CRS-2
Table 1. List of Charges, Indictments, and Guilty Pleas in Corporate Scandals Since Enron
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
Adelphia Communications
John J. 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
Timothy Rigas (chief financial officer)
9/23/02 (C)
John Rigas and Timothy Rigas were found guilty of one
New York Times, 7/9/04,
7/8/04 (G)
count of conspiracy, 15 counts of securities fraud, and
sec. A, p. 1, col. 1
two counts of bank fraud.
6/20/05 (G)
John Rigas was sentenced to 15 years in prison, and
New York Times, 6/21/05,
Timothy Rigas was sentenced to 20 years in prison.
sec. C, p. 1, col. 6
Michael Rigas (executive vice president)
9/23/02 (C)
Michael Rigas was acquitted of conspiracy and wire
New York Times, 7/10/04,
fraud, but the jurors said they were still undecided on the
sec. 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.
James 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

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CRS-3
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
Michael C. Mulcahey (director of internal
9/23/02 (C)
Michael C. Mulcahey was acquitted on all counts.
New York Times, 9/24/02,
reporting)
7/8/04 (A)
sec. C, p. 1, col. 5
Timothy Werth (director of accounting)
01/10/03 (G)
Securities fraud, wire fraud, and bank fraud
New York Times, 1/11/03,
sec. C, p. 3, col. 1
Arthur Andersen
David Duncan (former partner)
4/10/02 (G)
Obstruction of justice (related to Enron audit). Arthur
New York Times, 4/11/02,
Andersen (the firm) was convicted on the same charge in
sec. A, p. 1, col. 2
June 2002.
Charter Communications
Kent 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
David Barford (chief operating officer)
James Smith (senior vice president)
David McCall (executive)
7/25/03 (G)
Conspiracy to commit wire fraud
New York Times, 7/26/03,
sec. C, p. 2, col. 3

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CRS-4
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
Credit Suisse First Boston
Frank P. Quattrone (banker)
5/12/03 (I)
Obstruction of justice and destroying evidence
New York Times, 5/13/03,
sec. C, p. 1, col. 2
10/24/03
A federal judge declared a mistrial in the obstruction of
New York Times, 10/25/03,
justice trial of Frank P. Quattrone.
sec. A, p. 1, col. 1
12/2/03
A federal judge set a March 22, 2004, date for the second
New York Times, 12/2/03,
trial of Frank P. Quattrone.
sec. C, p. 5, col. 1
5/3/04 (G)
Quattrone was found guilty of trying to impede
New York Times, 5/4/04,
government investigations into how stock offerings were
sec. A, p. 1, col. 6
doled out to investors.
9/8/04
Quattrone was sentenced to 18 months in prison and fined
New York Times, 9/9/04,
$90,300.
sec. A, p. 1, col. 1
Dynegy Inc.
Gene S. Foster (vice president)
8/5/03 (G)
Conspiracy to commit securities fraud
New York Times, 8/6/03,
sec. C, p. 4, col. 1
Helen C. Sharkey (accounting manager)

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CRS-5
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
Jamie Olis (director for tax planning)
8/5/03 (I)
Conspiracy to commit securities fraud
New York Times, 8/6/03,
sec. C, p. 4, col. 1
3/25/04 (G)
A federal judge sentenced Jamie Olis to more than 24
New York Times, 3/26/04,
years in prison for his role in a secretive project to
sec. C, p. 2, col. 1
disguise Dynegy’s financial difficulties. He had been
found guilty in November 2003.
Enron Corp.
Michael Kopper (finance executive)
8/21/02 (G)
Conspiracy to commit wire fraud and money laundering
New York Times, 8/22/02,
sec. A, p. 1, col. 6
Andrew Fastow (chief financial officer)
10/2/02 (C)
Charged with securities fraud, wire fraud, mail fraud,
Department of Justice,
money laundering, and conspiracy
10/2/02, press release #568a;
10/31/02 (I)
Indicted by a grand jury on 78 counts of fraud, money
10/31/02, press release
laundering, and conspiracy
#627;
5/1/03 (I)
Charged with insider trading and tax fraud
5/1/03, press release #268
1/14/04 (G)
Under the terms of a plea agreement, Fastow will
1/14/04, 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.
Timothy N. Belden (senior trader)
10/17/02 (G)
Pleaded guilty to engaging in a conspiracy that illegally
New York Times, 10/18/02,
manipulated the California power market
sec. C, p. 1, col. 5

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CRS-6
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
Lawrence M. Lawyer (finance executive)
11/26/02 (G)
Pleaded guilty to filing a false income tax return and
Department of Justice,
failing to report taxable income
11/26/02, press release #696
Jeffrey Ricter (senior trader)
2/4/03 (G)
Pleaded guilty to manipulating the California power
New York Times, 2/5/03,
market
sec. C, p. 2, col. 4
Kevin Howard (Enron Broadband Services
3/12/03 (I)
Charged with securities fraud, wire fraud, conspiracy, and
Department of Justice,
[EBS] vice president of finance)
5/1/03 (I)
making false statements to FBI agents
3/12/03, press release #153
Michael Krautz (EBS senior director of
3/12/03 (I)
Department of Justice,
accounting)
5/1/03 (I)
5/1/03, press release #268
Ben Gilsan (treasurer)
5/1/03 (I)
Securities fraud, insider trading, and tax fraud
Department of Justice,
5/1/03, press release #268
9/10/03 (G)
Pleaded guilty to conspiracy to commit wire and
Department of Justice,
securities fraud and was sent to prison to serve a five-year
9/10/03, press release #492
sentence.
Dan Boyle (finance executive)
5/1/03 (I)
Securities fraud, insider trading, and tax fraud
Department of Justice,
5/1/03, press release #268
11/3/04 (G)
Convicted of conspiring to help Enron report bogus
New York Times, 11/4/04,
profits
sec. C, p. 1, col. 5

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CRS-7
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
Kenneth Rice (EBS chairman)
5/1/03 (I)
Securities fraud, wire fraud, and money laundering
Department of Justice,
5/1/03, press release #268
7/30/04 (G)
Pleaded guilty to securities fraud and agreed to cooperate
Department of Justice,
fully with the government’s ongoing criminal
7/30/04, press release #525
investigation into the collapse of Enron. As part of his
plea, Rice has agreed to the forfeiture of approximately
$13.7 million to be used to compensate victims of the
Enron fraud and to pay an additional fine of $1 million.
Joseph Hirko (EBS president)
5/1/03 (I)
Securities fraud, wire fraud, and money laundering
Department of Justice,
Scott Yeager (EBS senior vice president)
5/1/03, press release #268
Rex Shelby (EBS senior vice president)
Kevin Hannon (EBS chief operating officer)
8/31/04 (G)
Kevin Hannon pleaded guilty to conspiracy to commit
Department of Justice,
securities and wire fraud. He faces a maximum sentence
8/31/04, 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.
Lea Fastow (assistant treasurer)
5/1/03 (I)
Conspiracy to commit wire fraud, money laundering
Department of Justice,
conspiracy, and filing false tax returns
5/1/03, 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 of
5/6/04, 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.

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CRS-8
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
John M. Forney (trader)
6/3/03 (C)
Charged with manipulating the California power market
New York Times, 6/4/03,
sec. C, p. 6, col. 3
David Delainey (CEO of Enron North America
10/30/03 (G)
Pleaded guilty to a one-count indictment charging him
Department of Justice
and Enron Energy Services)
with insider trading
10/30/03 press release #594
Richard Causey (chief accounting officer)
1/22/04 (C)
Charged with five counts of securities fraud and one
Department of Justice,
count of conspiracy to commit securities fraud
1/22/04, press release #36
2/19/04 (C)
Charged in a superseding indictment with conspiracy to
Department of Justice,
commit securities fraud, 20 counts of securities fraud,
2/19/04, press release #99
eight counts of wire fraud, and two counts of insider
trading
12/28/05 (G)
Pleads guilty to securities fraud
Department of Justice,
12/28/05, press release #695
Jeffrey K. Skilling (CEO)
2/19/04 (C)
Charged with conspiracy to commit securities fraud, 20
Department of Justice,
counts of securities fraud, four counts of wire fraud, and
2/19/04, press release #99
10 counts of insider trading
Kenneth L. Lay (chairman and CEO)
7/8/04 (C)
Charged with conspiracy to commit securities fraud, four
Department of Justice,
counts of securities fraud, two counts of wire fraud, one
7/8/04, press release #470
count of bank fraud, and three counts of making false
statements to a bank
Mark Koenig (executive vice president)
8/25/04 (G)
Koenig pleaded guilty to securities fraud . If he abides by
Department of Justice
the terms of his plea agreement, Koenig faces the
8/25/04, 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.

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CRS-9
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
Timothy Despain (assistant treasurer)
10/5/04 (G)
Despain pleaded guilty to one count of securities fraud
Department of Justice,
and faces a maximum of five years in prison and a fine of
10/5/04, press release #682
$250,000 or twice the loss.
Christopher Calger (vice president)
7/14/05 (G)
Calger pleaded guilty to a charge of conspiracy to commit
Department of Justice,
wire fraud.
7/14/05, press release #372
HealthSouth
Weston Smith (chief financial officer)
3/19/03 (G)
Securities fraud and wire fraud
Department of Justice,
3/19/03, press release #165
William T. Owens (chief of financial
3/26/03 (G)
Conspiracy to commit wire fraud and securities fraud
Department of Justice,
operations)
3/26/03, press release #180
Emery Harris (vice president of finance)
3/31/03 (G)
Conspiracy to commit wire fraud and securities fraud.
Department of Justice,
Sentenced to a term of five months in prison on each
3/31/03, press release #198
count to run concurrently, three years of supervised
release with five months of unsupervised home detention,
Department of Justice,
and payment of a $3,000 fine.
12/10/03, press release #678
Kenneth Livesay (chief information officer)
4/3/03 (G)
Conspiracy to commit wire fraud and securities fraud and
Department of Justice,
to falsify financial information
4/3/03, press release #205

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CRS-10
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
Angela C. Ayers (vice president)
4/3/03 (G)
All charged with wire fraud and conspiracy to commit
Department of Justice,
wire fraud and securities fraud. All sentenced to four
4/3/03, press release #205
years of probation with six months unsupervised home
Cathy C. Edwards (vice president)
4/3/03 (G)
confinement and payment of a $2,000 fine.
Rebecca Kay Morgan (group vice president)
4/3/03 (G)
Department of Justice,
12/10/03, press release #678
Virginia B. Valentine (assistant vice president)
4/3/03 (G)
Michael Martin (chief financial officer)
4/8/03 (C)
Conspiracy to commit wire fraud and securities fraud
Department of Justice,
4/8/03, press release #212
Malcolm McVay (treasurer)
4/21/03 (G)
Conspiracy to commit wire fraud and securities fraud
Department of Justice,
4/21/03, press release #245
Aaron Beam (chief financial officer)
4/24/03 (G)
Bank fraud
Department of Justice,
4/24/03, press release #255
Jason Brown (vice president of finance)
7/8/03 (G)
Conspiracy to commit securities fraud, falsifying books
Department of Justice,
and records, and wire fraud
7/8/03, press release #401
Richard Botts (senior vice president)
7/31/03 (G)
Conspiracy to commit securities fraud, falsifying books,
Department of Justice,
and mail fraud
7/31/03, press release #436
Will Hicks (vice president)
7/31/03 (G)
Conspiracy to make false statements to auditors and
maintain false books and records

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CRS-11
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
Richard M. Scrushy (CEO and chairman of the
11/4/03 (C)
Charged in an 85-count indictment stemming from a
Department of Justice,
board)
wide-ranging scheme to defraud investors, the public, and
11/4/03, press release #603
the U.S. government about HealthSouth’s financial
condition
9/29/04 (C)
A federal grand jury returned a 58-count superseding
Department of Justice,
indictment adding charges of obstruction of justice and
9/29/04, press release #654
perjury and consolidating some of the other charges from
the initial indictment, which included conspiracy, mail,
wire and securities fraud, false statements, false
certifications, and money laundering.
6/28/05 (A)
Richard M. Scrushy was acquitted on all 36 counts that he
New York Times, 6/29/05,
was charged with.
sec. A, p. 1, col. 1
Catherine Fowler (vice president)
11/24/03 (G)
Conspiring to mislead the auditors and to maintain false
New York Times, 11/25/03,
books and records
sec. C, p. 3, col. 1
Vincent Nico (vice president)
3/2/04 (G)
Wire fraud related to contracts with a hospital in Saudi
Department of Justice
Arabia
3/2/04, press release #131
Thomas Carman (executive vice president)
3/2/04 (G)
Making a false statement to the FBI
Department of Justice
3/2/04, press release #131

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CRS-12
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
ImClone Systems
Samuel Waksal (chief executive)a
8/7/02 (I)
Trading on inside information
New York Times
8/8/02, sec. A, p. 1, col. 1;
10/15/02 (G)
Sentenced to 87 months in prison and ordered to pay a $3
6/11/03, sec. C, p. 1, col. 5;
million fine
10/16/02, sec. C, p. 1, col. 2
Just for Feet, Inc.
Adam Gilburne (executive)
5/12/03 (G)
Conspiracy to commit wire fraud and securities fraud
Department of Justice,
5/12/03, press release #283
Don-Allen Ruttenberg (executive vice
2/25/04 (G)
Conspiracy to commit securities fraud, wire fraud, and
Department of Justice,
president)
submitting false statements to the auditors of JFF
2/25/04, press release #110
Kmart
Joseph A. Hofmeister (vice president)
2/26/02 (I)
Fraud, conspiracy, and making false statements
New York Times, 2/27/03,
sec. C, p. 1, col. 5
Enio A. Montini Jr. (senior vice president)
2/26/02 (I)

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CRS-13
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
Martha Stewart Living Omnimedia
Martha Stewart (chairman and CEO)a
6/4/03 (I)
Conspiracy, obstruction of justice, and securities fraud
New 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 investigators
sec. A, p. 1, col. 6
7/16/04 (G)
Sentenced to five months in prison plus five months of
New York Times, 7/17/04,
home confinement
sec. A, p. 1, col. 2
Peter Bacanovic (securities broker)
6/4/03 (I)
Criminal charges, including perjury
New York Times, 6/5/03,
sec. A, p. 1, col. 2
3/5/04 (G)
Criminal charges, including perjury
New York Times, 3/6/04,
sec. A, p. 1, col. 6
Merrill Lynch
Douglas Faneuil (stockbroker)
10/2/02 (G)
Pleaded guilty to obstruction of justice related to insider
New York Times, 10/3/02,
trading of ImClone Systems
sec. C, p. 1, col. 2
Daniel Bayly (head of Global Investment
9/17/03 (I)
Conspiracy to commit wire fraud and to falsify books and
Department of Justice,
Banking division)
records
9/17/03, press release #510
James A. Brown (head of Merrill Lynch’s
11/3/04 (C)
Convicted of conspiring to help Enron report bogus
New York Times, 11/4/04,
Strategic Asset Lease and Finance group)
profits
sec. C, p. 1, col. 5
Robert S. Furst (Enron relationship manager
for Merrill Lynch)

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CRS-14
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
Mutuals.com
Richard A. Sapio (CEO)
3/15/04 (C)
Charged with a scheme to defraud mutual fund
Wall Street Journal,
shareholders in connection with market timing, a practice
3/16/04, sec. D, p. 9
Eric McDonald (president)
involving the short-term trading of mutual funds
Michele Leftwich (compliance officer)
NatWest Bank
Giles R. Darby (banker)
6/27/02 (C)
All three are British bankers charged with wire fraud in
New York Times, 6/28/02,
connection with Enron’s off-the-books partnerships
sec. C, p. 1, col. 2
David J. Bermingham (banker)
6/27/02 (C)
Department of Justice,
Gary S. Mulgrew (banker)
6/27/02 (C)
6/27/02, press release #377
NewCom Inc.
Sultan W. Khan (president and chief
9/5/02 (I)
Fraud, money laundering, filing false statements, and
New York Times, 9/6/02,
executive)
conspiracy
sec. C, p. 4, col. 3
Asif M. Khan (executive vice president)
9/5/02 (I)
Steven C. Veen (chief financial officer)
9/5/02 (I)

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CRS-15
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
Quaker Alloy
Thomas W. Lambach (chief financial officer)
4/3/02 (G)
Wire fraud and conspiracy
Harrisburg (PA) Patriot-
News, 4/4/02, p. B12
Joseph Stewart (human resource manager)
4/3/02 (G)
Qwest Communications
Grant Graham (chief financial officer)
2/25/03 (I)
Corporate accounting fraud
Department of Justice,
2/25/03, press release #112
Thomas Hall (senior vice president)
4/16/04
A federal jury acquitted John Walker and Bryan
New York Times, 4/17/04,
Treadway of accounting fraud, found Grant Graham not
sec. C, p. 2, col. 5
guilty on three counts and deadlocked on the eight other
John Walker (vice president)
counts facing him, and completely deadlocked on all
counts against Tom Hall. Judge Robert Blackburn
declared a mistrial on all deadlocked counts and
Bryan Treadway (assistant controller)
scheduled a status conference for April 26.

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CRS-16
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
Rite Aid
Martin L. Grass (chairman and chief
6/23/02 (G)
Various counts of securities fraud
New York Times,
executive)
5/14/04 (G)
6/22/02, sec. A, p. 1, col. 1;
6/6/03, sec. C, p. 3, col. 3;
Franklin Brown (chief counsel and vice
6/23/02 (G)
Grass signed a plea deal with prosecutors under which he
6/18/03, sec. C, p. 12, col. 3;
chairman)
10/14/04 (G)
will serve up to 10 years in prison , pay $500,000 in fines,
6/26/03, sec. C, p. 6, col. 3;
and forfeit $3 million to the United States to ensure that
10/18/03, sec. C, p. 2, col. 1
he does not receive unjust enrichment
5/14/04, sec. C, p.10, col. 1
10/15/04, sec. C, p. 3, col. 1
Franklyn Bergonzi (chief financial officer)
6/23/02 (G)
Brown was sentenced to 10 years in prison
Erik S. Sorkin (executive vice president)
6/23/02 (G)
Lying to the grand jury
Timothy J. Noonan (president and chief
7/10/02 (G)
Withholding information from the company’s internal
Lancaster (PA) Intelligencer
operations officer)
investigators
Journal, 7/11/02, sec.
Business, p. B-7
Philip Markovitz (senior vice president)
7/11/2003 (G)
Conspiracy to obstruct justice
New York Times, 7/11/03,
sec. C, p. 12, col. 1

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CRS-17
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
Tyco International
L. Dennis Kozlowski (chairman and chief
9/12/02 (I)
Grand larceny, enterprise corruption, falsifying records.
New York Times,
executive)
Kozlowski was also indicted June 4, 2002, for sales tax
9/13/02, 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
6/18/05, sec. A, p. 1, col. 6
on fraud, conspiracy, and grand larceny charges.
Mark H. Swartz (chief financial officer)
9/12/02 (I)
6/17/05 (G)
Mark Belnick (general counsel)
9/12/02 (I)
Falsifying records
New York Times, 9/13/02,
sec. A, p. 1. col. 3;
2/3/03 (I)
Indicted on three additional charges
New York Times, 2/4/03,
sec. C, p. 1., col. 2
7/16/04 (A)
A jury acquitted Belnick of charges that he stole millions
New York Times, 9/16/04,
of dollars from Tyco in the form of unauthorized bonuses
sec. C, p. 1, col. 2
and loans. He still faces charges brought forth by the
SEC.

---

CRS-18
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
Westar Energy, Inc.
David C. Wittig (CEO)
12/4/03 (I)
Conspiracy to defraud, circumventing internal accounting
Department of Justice,
controls, falsifying books and records, wire fraud,
12/4/03,
submitting false statements, and engaging in monetary
press release #663
transactions derived from an unlawful activity
Douglas T. Lake (executive vice president)
9/12/05 (G)
David C. Wittig was found guilty of 39 counts and
New York Times, 9/13/05,
Douglas T. Lake was found guilty of 30 counts of
sec. C, col. 4, p. 12
conspiracy, wire fraud, circumventing internal controls,
and money laundering.
WorldCom
Scott Sullivan (chief financial officer)
8/27/02 (I)
Numerous counts of securities fraud and conspiracy
Department of Justice,
8/27/02, press release #494
3/2/04 (G)
Pleaded guilty
New York Times, 3/3/04,
sec. A, p. 1, col. 5
Buford Yates, Jr. (director of general
8/27/02 (I)
Securities fraud
Department of Justice,
accounting)

8/27/02, press release #494;
10/7/02 (G)
New York Times, 10/8/02,
sec. C, p. 9, col. 1
David Myers (former controller)
9/26/02 (G)
Securities fraud
New York Times, 9/27/02,
sec. C, p. 2, col. 3

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CRS-19
Charged (C),
Indicted (I),
Company/Individual
Charges
Sources
Guilty Plea (G),
Acquitted (A)
Betty Vinson (an executive in the General
10/10/02 (G)
Securities fraud and conspiracy
New York Times, 10/11/02,
Accounting Department)
sec. C, p. 10, col. 1
Troy Normand (an executive in the General
10/10/02 (G)
Accounting Department)
Bernard J. Ebbers (chief executive)
3/2/04 (I)
Accounting fraud
New York Times, 3/3/04,
sec. A, p. 1, col. 5
3/15/05 (G)
Ebbers was found guilty of securities fraud, conspiracy,
and seven counts of filing false reports with regulators.
New York Times, 3/16/05,
Each count carries a sentence of 5 to 10 years.
sec. A, p. 1, col. 1
w
g
p
h
p
s
cr
Note: A few of these cases have also resulted in civil indictments.

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