Judge Orders Ex-Kmart CEO To Pay Out $10M

Law360, New York (February 25, 2010, 6:26 PM EST) -- A former Kmart Corp. chief executive has been ordered to pay out more than $10 million for misleading investors about liquidity and inventory levels as the company drew toward bankruptcy in 2001, but he will not receive an officer and director bar.

Charles Conaway will hand over $5 million in disgorgement, more than $2.7 million in prejudgment interest and a $2.5 million civil penalty, according to an opinion issued Thursday by Magistrate Judge Steven D. Pepe of the U.S. District Court for the Eastern District of...
To view the full article, register now.