Months backdating case sentence reyes securities ceo corporate scandals justice


Reyes became the first executive to go on trial over stock-options backdating.So far, about 200 companies have been targeted for the practice by the Justice Department and Securities and Exchange Commission, and many have had to restate their finances, erasing billions of dollars in previously reported profits.The judge set her bond at 0,000, which her husband, Greg, agreed to co-sign.

The pharmaceutical firm agreed to pay $671 million to settle claims that it overcharged Medicaid programs for four drugs, including Vioxx and Zocor, and to resolve allegations of improper marketing to doctors.

Drug companies are required to report to the government the lowest price for its product to ensure that Medicaid programs get the benefit of the same discount.

Former partner William Lerach was sentenced to two years in federal prison and fined $250,000 for his role in a kickback scheme involving class-action lawsuits against some of the nation’s largest corporations.

Also sentenced were Seymour Lazar (six months home detention, two years probation, $600,000 fine), Steven Schulman (forfeit of $1.8 million and a $250,000 fine), and David Bershad, who pled guilty to conspiracy and agreed to cooperate with the government.

The individuals are charged with participating in a scheme to manipulate AIG’s financial statements to make it appear as if the firm increased its loss reserves by about $500 million in 20, pacifying analysts and investors and artificially boosting the company’s stock price.