Cendant Ex-Chairman Guilty In Massive Fraud

Law360, New York (October 31, 2006, 12:00 AM EST) -- Former Cendant Corp. Chairman Walter Forbes was found guilty of conspiracy to commit securities fraud and two counts of making false statements Tuesday in one of the largest accounting fraud cases brought before a U.S. court.

Government lawyers charged Forbes with a scheme to inflate the stock of Cendant's predecessor, CUC International, by $500 million.

The alleged fraud led to financial restatements in 1998, which caused the company’s stock value to plummet $14 billion in one day.

At the time, the Cendant scandal was considered one...
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