Jail time and huge fine for former Cendant chairman
Walter Forbes ordered to pay £1.67bn and sent to jail for more than 12 years
Walter
Forbes, the former chairman of real estate and travel group
Cendant chairman, has been sentenced to 12
years and seven months in prison and ordered to pay $3.3bn (£1.67bn ) for his
role in the massive accounting scandal at the company.
In the trial, prosecutors accused Forbes and former vice chairman
Kirk
Shelton of overseeing an accounting scheme that overstated income at
Cendant, formerly known as Avis Budget Group, and at predecessor company CUC
International.
The US district judge Alan Nevas called the restitution payment ‘a reasonable
estimate of the victims’ losses’.
It is not known how Forbes, 64, is expected to pay such a large sum.
In October 2006, Forbes was convicted on one count of conspiracy and two
counts of false reporting after two previous mistrials for his role in the
accounting irregularities.
Further reading:
News Analysis – Putting a cap on liability
E&Y agrees massive payout to settle Cendant audit
dispute
