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Business Crimes Hotline
CALIFORNIA
Former CEO Convicted of Fraudulently Inflating Accounts Receivable and Inventory
Richard I. Berger, the former CEO of Craig Consumer Electronics (Craig), was convicted on 12 felony counts relating to an alleged scheme in which he caused false reporting of Craig's accounts receivable and inventory to make the company appear to be more financially solvent as it went public and as it filed reports with the Securities and Exchange Commission. Berger was found guilty of one count of conspiracy, six counts of loan fraud, one count of falsifying corporate books and records, one count of making false statements to company accountants, and three counts of making false statements in SEC filings.
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