A jury here on Tuesday found the former chief executiveofficer and former chief financial officer of drug-store chain Duane Readeguilty of securities fraud for falsely inflating the company's income,misrepresenting its expenses, and misleading investors.
After a two-month trial and two days of deliberations,former CEO Anthony Cuti, 64, was convicted of securities fraud, conspiracy andmaking false statements, while former CFO William Tennant, 62, was convicted ofsecurities fraud, but acquitted of conspiracy and making false statements.
Prosecutors had charged that while overseeing a majorexpansion of the New York-based chain, from 2000 to 2004, the two had reportedinflated income from fraudulent real estate transactions, and reduced expensesthrough fictitious credits from vendors, according to The New York Times.
The two former executives face up to 20 years in prison;Cuti will be sentenced in November, and Tennant in December.
The drug-store chain was bought by Oak Hill Partners in2004, and it was announced in February that it would be sold to Walgreen's.
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