Wednesday, February 16, 2005

Spitzer is Not the Only One Prosecuting White Collar Cases in NY

While Attorney General Spitzer is investigating activities on a state level, the federal government is also busy with white collar cases. The trial of a former chief executive of American Tissue continued with the testimony of the former chief financial officer.  Former CFO Stein pleaded guilty and is now testifying as a government witness in a trial that charges the defendant with "fraud, conspiracy to commit perjury and obstruction of justice."  See Newsday for more.

In addition to criminal charges, the SEC also brought a civil action. (Complaint) (Litigation Release No. 18022). According to the New York State Society of CPA's website, the accused "has gone to extraordinary lengths to block efforts aimed at selling its network of paper mills and warehouses to pay hefty debts.  He allegedly instructed employees to forge ownership documents for machinery he didn't own and the  told them to lie to a Delaware bankruptcy court."  The same website reports that the defendant's attorney states that, "[a]ny dispute with the bankruptcy court is really a business dispute, not a criminal dispute."

(esp)

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