Former Cal Micro Execs Sentenced for Fraud

Two former top executives of semiconductor component maker California Micro Devices Corp. were sentenced to at least two years each in prison for their role in a multimillion-dollar stock fraud, lawyers said. U.S. District Judge Vaughn Walker in San Francisco sentenced former Cal Micro Chairman and Chief Executive Chan Desaigoudar to 36 months in prison for taking part in an illegal scheme to inflate the company’s stock price in 1993 and ’94. Walker also ordered Desaigoudar to pay a $100,000 fine and relinquish shares worth $2 million in order to repay investors. Former Cal Micro Chief Financial Officer Steven Henke was sentenced to 32 months in prison and was ordered to pay $100,000 in restitution. Desaigoudar and Henke were convicted in July in federal court on charges of falsifying Milpitas-based Cal Micro’s records in a 1994 accounting scandal at the company, which has since regrouped under new management. Henke’s lawyer Kenneth Wine said the judgments against both men were being appealed. Both are free on bail.