Business Crimes Hotline

McCall was indicted in 2003 and, after a 2006 jury trial, was acquitted on conspiracy charges, but the jury failed to resolve other charges. Thereafter, federal prosecutors re-indicted McCall, leading to his 2009 re-trial. McCall had been convicted in November of five counts of securities fraud and circumventing accounting rules. The government had alleged that McCall had backdated sales contracts to meet projections by recognizing revenue early. The prison term was five years, the minimum sentence and less than what the government requested. McCall's attorney said that he would appeal the present conviction and that his client maintains his innocence. Five other former McKeeson executives had pleaded guilty as a part of the government's investigation. In 2005, the company settled investor suits by agreeing to pay $960 million.

NEW YORK

Scoop Management Money Manager Pleads Guilty to 15 Counts of Fraud

Arthur Nadel, founder of Sarasota, FL-based Scoop Management, Inc., pleaded guilty to securities fraud, wire fraud, and mail fraud in front of U.S. District Judge John Koeltl in New York.

The government alleged that Nadel ran a 10-year Ponzi scheme that raised almost $400 million from hundreds of investors. Although there were negative returns on the investment, Nadel told investors that they were making from 11% to 55%. Nadel allegedly took in more than $63 million in fees and profits, although at the time of collapse the fund had less than $125,000.

As part of the plea agreement, Nadel will forfeit $162 million. Judge Koeltl set sentencing for June 11, 2010. The agreement outlined a Sentencing Guidelines range of 12 years, 7 months to 24 years, 5 months. Nadel will remain in custody until sentencing.

OHIO

Packaged Ice Manufacturer Sentenced in Price-Fixing Conspiracy

The Home City Ice Company was sentenced to pay a $9 million fine and serve five years' probation in the U.S. District Court for the Southern District of Ohio.

The government alleged that the company had conspired to allocate both customers and territories in the Detroit and southern Michigan ice market between 2001 and 2007, in violation of the Sherman Antitrust Act. The company pleaded guilty to one conspiracy count in June 2008.

Another ice company, Arctic Glacier International, Inc., had pleaded guilty to one conspiracy count and was fined $9 million on Feb. 11. At that time, a number of individuals objected to the plea agreement due to the lack of restitution and narrow scope of the admission of guilt, asserting rights under the Crime Victim Rights Act. After the court accepted the plea, the Sixth Circuit rejected their mandamus petition.

CALIFORNIA

Former Chairman of McKeeson Corporation Sentenced to 10 Years in Prison

U.S. District Court Judge William H. Alsup sentenced Charles McCall to 10 years in prison and ordered him to pay a $1 million fine for his role in a fraud to inflate sales revenue.

McCall was indicted in 2003 and, after a 2006 jury trial, was acquitted on conspiracy charges, but the jury failed to resolve other charges. Thereafter, federal prosecutors re-indicted McCall, leading to his 2009 re-trial. McCall had been convicted in November of five counts of securities fraud and circumventing accounting rules. The government had alleged that McCall had backdated sales contracts to meet projections by recognizing revenue early. The prison term was five years, the minimum sentence and less than what the government requested. McCall's attorney said that he would appeal the present conviction and that his client maintains his innocence. Five other former McKeeson executives had pleaded guilty as a part of the government's investigation. In 2005, the company settled investor suits by agreeing to pay $960 million.

NEW YORK

Scoop Management Money Manager Pleads Guilty to 15 Counts of Fraud

Arthur Nadel, founder of Sarasota, FL-based Scoop Management, Inc., pleaded guilty to securities fraud, wire fraud, and mail fraud in front of U.S. District Judge John Koeltl in New York.

The government alleged that Nadel ran a 10-year Ponzi scheme that raised almost $400 million from hundreds of investors. Although there were negative returns on the investment, Nadel told investors that they were making from 11% to 55%. Nadel allegedly took in more than $63 million in fees and profits, although at the time of collapse the fund had less than $125,000.

As part of the plea agreement, Nadel will forfeit $162 million. Judge Koeltl set sentencing for June 11, 2010. The agreement outlined a Sentencing Guidelines range of 12 years, 7 months to 24 years, 5 months. Nadel will remain in custody until sentencing.

OHIO

Packaged Ice Manufacturer Sentenced in Price-Fixing Conspiracy

The Home City Ice Company was sentenced to pay a $9 million fine and serve five years' probation in the U.S. District Court for the Southern District of Ohio.

The government alleged that the company had conspired to allocate both customers and territories in the Detroit and southern Michigan ice market between 2001 and 2007, in violation of the Sherman Antitrust Act. The company pleaded guilty to one conspiracy count in June 2008.

Another ice company, Arctic Glacier International, Inc., had pleaded guilty to one conspiracy count and was fined $9 million on Feb. 11. At that time, a number of individuals objected to the plea agreement due to the lack of restitution and narrow scope of the admission of guilt, asserting rights under the Crime Victim Rights Act. After the court accepted the plea, the Sixth Circuit rejected their mandamus petition.