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Former Electronics Company CEO Sentenced for Role in Securities and Accounting Fraud
After conviction by a jury, the former president and CEO of Craig Consumer Electronics (“Craig”), Richard I. Berger, has been sentenced to 6 months in prison, and ordered to pay a fine of $1.25 million and restitution of almost $3.2 million for securities fraud and making false statements to the SEC. In 1996, Craig had made an initial public offering and its shares were traded on NASDAQ. According to evidence presented at trial, Berger and the company's CFO defrauded four lenders by inflating Craig's accounts receivable and distorting inventory figures, which allowed Craig to borrow more than it otherwise could have. Berger was also found guilty of making false statements to the SEC in Craig's registration documents for the 1996 public offering. Craig's former CFO has also pleaded guilty to three counts of bank fraud.
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