Ex-Westar CEO Wittig Gets 18-Year Sentence
A federal judge on Monday sentenced former Westar Energy Inc. CEO David Wittig to 18 years in prison for looting millions from the Kansas utility.
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Bank of America to sue Parmalat
/0 Comments/in Parmalat /by ceadminA US judge has given Bank of America the go-ahead to pursue a $1bn fraud claim against Italian firm Parmalat.
The bank has accused the firm’s former management of fraud, conspiracy and lying about its finances.
The claim will not affect Paramalat’s own $10bn suit against the bank for its alleged role in the firm’s collapse
Yukos to face fraud allegations
/0 Comments/in Yukos /by ceadminAiling Russian oil company Yukos and its former financial head will have to defend themselves in a fraud lawsuit, a US judge has ruled.
Yukos and its former chief financial officer Bruce Kisamore will be asked to respond to allegations of mis-stating the company’s tax risk to investors.
Yukos and Mr Kisamore have so far made no response to the decision by Judge William Pauley
Glaxo agrees US Paxil settlement
/0 Comments/in GlaxoSmithKline /by ceadminGlaxoSmithKline (GSK) has agreed to pay $14m (£8m) to settle US claims that it fraudulently tried to delay competitors to anti-depressant drug Paxil.
It agreed the deal with Eliot Spitzer, New York Attorney General, who brought the case on behalf of 49 states.
GSK was accused of using frivolous patent-infringement lawsuits against generic producers of Paxil, keeping the drug’s cost higher than necessary
Recycler fined for abusing market
/0 Comments/in Tomra /by ceadminTomra, a Norwegian supplier of vending machines for bottle recycling, has been fined 24m euro ($28.8m; £16m) for illegally preventing competition.
The European Commission said the fine – equivalent to 7% of the firm’s 2005 turnover – was the largest it had ever issued in terms of share of revenues
Zurich settles bid-rigging charge
/0 Comments/in Zurich /by ceadminZurich Financial Services has agreed to pay $153m (£88m) to settle insurance bid-rigging charges by three US states.
The agreements with New York, Illinois and Connecticut bring to about $325m in such settlements it has made in the US.
Zurich was accused of conspiring with other insurers to fix prices for certain policies
Refco boss facing Austrian arrest
/0 Comments/in Refco /by ceadminAuthorities in Austria have issued an arrest warrant for Phillip Bennett, former head of US brokerage Refco.
The move came a day after prosecutors began an inquiry into fraud and related charges surrounding Mr Bennett.
A warrant was also put out for the son of the former head of Bank Fuer Arbeit und Wirtschaft (Bawag), Wolfgang Floettl Jnr
KPMG Partner Pleads Guilty In Tax Shelter Case
/0 Comments/in KPMG /by ceadminA high-ranking partner at accounting giant KPMG pleaded guilty to helping fabricate $11.2 billion in fake tax shelters so America’s wealthiest families could beat income taxes.
The guilty plea yesterday in Manhattan federal court of David Rivkin, 42, could mean a devastating blow to a gang of 16 accounting execs at KPMG charged in the massive tax shelter scam
KPMG to pay undisclosed amount to settle lawsuit
/0 Comments/in KPMG /by ceadminAccounting firm KPMG LLP will pay an undisclosed amount to settle a $50 million malpractice lawsuit brought by former client Targus Group International Inc., according to court officials.
The settlement was reached early on Tuesday after some six months of negotiations between KPMG and privately held Targus, a maker of computer cases based in Orange County, California, said court officials close to the case
Hyundai chief faces fraud probe
/0 Comments/in Hyundai /by ceadminProsecutors have arrested the chief executive of carmaker Hyundai Motor’s logistics subsidiary, Glovis, on corruption charges.
Lee Ju-eun is suspected of embezzling 7bn won ($6.73m; £3