SEC Targets Endocare Execs

Law360, New York (August 10, 2006, 12:00 AM EDT) -- The U.S. Securities and Exchange Commission sued two former Endocare Inc. executives Thursday for allegedly defrauding the company’s investors over a year-and-a-half span.

According to the complaint, filed in the U.S. District Court in Santa Ana, Calif., Endocare’s former chief executive Paul W. Mikus and former chief financial officer John V. Cracchiolo booked false sales and understated or delayed expense filings to artificially inflate the company’s earnings.

Overall, Endocare overstated its revenue by 16% in 2001, 17% in the first quarter of 2002 and 33% in...
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