Apparel Firm’s Ex-CFO Admits Falsifying Books
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Sirena Apparel Group Inc.’s former chief financial officer pleaded guilty to charges he falsified the swimwear maker’s books to meet revenue forecasts, federal prosecutors said Tuesday.
Richard A. Gerhart, 49, of Irvine, pleaded guilty to nine counts before U.S. District Judge Dickran Tevrizian in Los Angeles.
The charges include making a false statement to the Securities and Exchange Commission and falsification of books and records. Tevrizian set an Aug. 13 sentencing date, when Gerhart could face as much as 85 years in prison.
Sirena officials repeatedly moved back the clock on the company’s computer system, keeping the computer from closing 1999’s fiscal third quarter until revenue had met analysts’ projections, authorities said. The move inflated quarterly results by about $4.4 million, the government charged.
Another Sirena executive, former Chief Executive Maurice Newman, entered his guilty plea two weeks ago. Newman faces a June 25 sentencing date.
Sirena, based in Vernon, makes swimwear under brand names such as Liz Claiborne. The company filed for Chapter 11 bankruptcy protection in June 1999.
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