Former McKesson Boss Guilty of Fraud
A federal jury has found Charles McCall, former chair of McKesson Corp. and leader of HBO & Co. before McKesson bought it, guilty of five counts of fraud and accounting irregularities, Bloomberg and the Associated Press report. He was acquitted on one count of falsifying records.
A federal jury has found Charles McCall, former chair of McKesson Corp. and leader of HBO & Co. before McKesson bought it, guilty of five counts of fraud and accounting irregularities, Bloomberg and the Associated Press report. He was acquitted on one count of falsifying records.
Jay Lapine, former general counsel at McKesson who also served at HBOC, was found not guilty on all three charges levied against him. McCall and Lapine in a 2006 trial were acquitted of some charges with the jury hung on remaining charges that this year were retried. Five other HBOC employees previously pleaded guilty to various charges.
The charges resulted from securities fraud at HBOC to inflate revenue by prematurely recognizing revenue. The scandal broke after McKesson acquired the company in 1999, leading restatements of financial reports and a loss of 47% in the value of McKesson shares. Investors lost nearly $9 billion and McKesson later settled shareholder lawsuits for almost $1 billion.
McCall's sentencing is set for March 2, Bloomberg reports.
Jay Lapine, former general counsel at McKesson who also served at HBOC, was found not guilty on all three charges levied against him. McCall and Lapine in a 2006 trial were acquitted of some charges with the jury hung on remaining charges that this year were retried. Five other HBOC employees previously pleaded guilty to various charges.
The charges resulted from securities fraud at HBOC to inflate revenue by prematurely recognizing revenue. The scandal broke after McKesson acquired the company in 1999, leading restatements of financial reports and a loss of 47% in the value of McKesson shares. Investors lost nearly $9 billion and McKesson later settled shareholder lawsuits for almost $1 billion.
McCall's sentencing is set for March 2, Bloomberg reports.