A federal judge on Monday ordered the former CEO of Gemstar-TV Guide International Inc. to pay $22.3 million in fines and penalties in an investment fraud case.
The judgment against Henry Yuen is less than the $31.4 million sought by the Securities and Exchange Commission. Yuen was found liable for securities fraud in March in a suit filed by the Securities and Exchange Commission saying that the inflated revenues by $248 million to boost stock, along with falsifying the company's books.
In 2003, Yuen was fired from Gemstar, the parent of TV Guide magazine and the patent holder for a variety of on-screen television program guides. Under the ruling, Mr. Yuen will also be permanently barred from serving as an officer or director of a publicly traded company.
U.S. District Judge Mariana Pfaelzer did not rule on a $29.5 million severance package that was previously frozen by a federal court. The SEC wants Yuen to forfeit the entire amount.
The judgment is the latest in a long line of legal woes for Yuen. In October 2005, he pleaded guilty to charges of obstruction of a federal investigation. As part of the plea bargain, he admitted to destroying documents between 1999 and 2002 when the company was being investigated for accounting irregularities. A judge, however, rejected the plea bargain, after which Yuen withdrew the guilty plea.
Yuen's attorney, Stanley Arkin, said the verdict and judgment will be appealed. "We've always taken the position that Henry Yuen never did anything to deliberately defraud investors and everything he did had been approved by professionals or fellow board members," Arkin told the Associated Press.
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