Monday, May 21, 2007

Former CFO at Network Associates convicted

Today, I feel like I'm the local crime reporter. In addition to the US Foodservice guy below, we also had the former CFO of Network Associates convicted last week, again for playing accounting games relating to trade promotion allowances -- in this case, channel-stuffing.
According to court documents, Goyal allegedly caused Network Associates to make payments to its distributors disguised as discounts, rebates and marketing fees to convince the distributors to engage in channel stuffing
After the fraud, which cost the company more than a billion in market capitalization, the company was renamed, and is now called McAfee.

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