Friday, May 04, 2007

Lason Update- Monroe sentenced

It appears the former Chairman and CEO has gotten his come-uppance as well. As to the matter of this $20 million in restitution, where does that come from and who does it go to?

1 comment:

Pelican said...

Former Lason exec gets prison time for fraud, false SEC statement

Associated Press

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DETROIT -- Another Lason Inc. executive was sentenced Wednesday to 45 months in prison on charges of fraud and overstating the data management company's earnings.

Prosecutors have said William J. Rauwerdink and two others conspired to inflate Lason's 1999 third-quarter profits by about $13 million in a filing with the U.S. Securities and Exchange Commission.

Rauwerdink, 57, of Oakland County's West Bloomfield Township, was Lason's chief financial officer. He pleaded guilty in November 2006 to charges of conspiracy to commit mail, wire and bank fraud; making false statements to the SEC; and filing a false and fraudulent quarterly report with the SEC.

U.S. District Judge Arthur Tarnow also ordered Rauwerdink to pay $115 million in restitution to former shareholders of Troy-based Lason and $170 million in restitution to Lason's principal lender, a bank group led by Bank One Michigan, U.S. Attorney Stephen J. Murphy said in a statement.

Former Lason chairman and chief executive officer Gary L. Monroe was sentenced in April to 15 months' imprisonment and ordered to pay $20 million in restitution to former shareholders.

John Messinger, the company's former president and chief operating officer, was sentenced in March to a year in prison and ordered to pay identical restitution.

Lason filed for Chapter 11 bankruptcy protection in December 2001. When it emerged from bankruptcy in July 2002, shareholders with old Lason stock saw those stocks wiped out.

The firm was recently acquired by HOV Services Ltd., an outsourcing company based in India.