Friday, February 17, 2006

Former Impath President Found Guilty of Securities Fraud

Former Impath Inc. president and chief operating officer Richard Adelson was found guilty of securities fraud, conspiracy, and filing false statements with the SEC in connection with a scheme to inflate the medical information company's earnings and revenues.  Adelson was acquitted on seven other false statement and soliciting false proxy counts.  The company's former CEO, Anuradha Saad, received a three-month prison term in January 2006 after pleading guilty to soliciting false proxies that did not disclose her charges of over $120,000 in personal expenses to the company through her corporate credit card; four other executives entered guilty pleas related to the fraudulent accounting.  Adelson was accused of helping to inflate Impath's revenues by approximately $64 million from 2000 to 2002, and the company collapsed into bankruptcy in 2003. An AP story (here) discusses Adelson's conviction. (ph)

Fraud, Securities, Verdict | Permalink

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