Feeds

Gateway duo found guilty of ancient securities fraud

How not to hit the numbers

Secure remote control for conventional and virtual desktops

Two senior beancounters at Gateway cooked the books in 2000 in an attempt to keep Wall Street analysts happy. John Todd, the ex-chief financial officer, and Robert Manza, the PC maker's fomer controller, also illegally swept bad news about the company under the carpet.

Yesterday they were found guilty of engaging in a fraudulent revenue and earnings manipulation scheme, after a three week trial in San Diego, Calif. The court heard how Todd masterminded the scheme to "close the gap" between analysts' expectations and Gateway's anticipated revenues through a variety of improper and extraordinary transactions," The Securities and Exchange Commission (SEC) said. First up, Manza a certified public accountant, drew up financial statements, knowing that they failed to comply with generally accepted accounting principles (GAAP).

Compounding the fraud, the duo failed to disclose a big increase in lending to bad risk customers in Q2 and Q3, 2000. According to the SEC, Todd decided to offer pre-approved financing to individuals whose credit applications had been previously rejected by Gateway. Then the credit floodgates opened to even less creditworthy customers in what Gateway insiders called the DDS program. As in deep, deep shit.

Now Todd and Manza are in DDS. Sentencing comes later. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Britain's housing crisis: What are we going to do about it?
Rent control: Better than bombs at destroying housing
Top beak: UK privacy law may be reconsidered because of social media
Rise of Twitter etc creates 'enormous challenges'
Ex US cybersecurity czar guilty in child sex abuse website case
Health and Human Services IT security chief headed online to share vile images
We need less U.S. in our WWW – Euro digital chief Steelie Neelie
EC moves to shift status quo at Internet Governance Forum
Oz biz regulator discovers shared servers in EPIC FACEPALM
'Not aware' that one IP can hold more than one Website
Apple tried to get a ban on Galaxy, judge said: NO, NO, NO
Judge Koh refuses Samsung ban for the third time
Pedals and wheel in that Google robo-car or it's off the road – Cali DMV
And insists on $5 million insurance per motor against accidents
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up Big Data
Solving backup challenges and “protect everything from everywhere,” as we move into the era of big data management and the adoption of BYOD.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?