Former Cendant Exec Must Pay Full Restitution
By Danielle Briones
Published on August 15, 2005
E. Kirk Shelton, the former vice chairman of Cendant Corp. is required to make his first payment of $15 million this fall, with monthly payments of $2,000 to follow.
The travel company, formerly named CUC International, lost billions of dollars after announcing a $500 million overstatement in revenue.
The lawsuit alleged that Shelton orchestrated the accounting scandal. He was found guilty on mail fraud, securities fraud, wire fraud, conspiracy, and making false statement charges in January.
The scheme cost Cendant $3 billion in investor and company losses, as well as $270 million to settle shareholder litigation and administer financial audits.
Walker Forbes, the company's former chairman, undergoes a new trial starting in September. The jury was unable to reach a verdict in his first trial.
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