Ex-Network Associates Exec Pleads Guilty
Source: Yahoo! News
A former executive at Network Associates (NYSE:NET - news) has pleaded guilty to fraud charges for taking part in a scheme to inflate revenue at the security software maker, authorities said on Thursday. The United States Attorney's office for the Northern District of California said the charges against Terry Davis, 41, were the first to emerge from an investigation into conduct at Network Associates after the company restated its earnings last year for the period between 1998-2000.
That announcement caused the Santa Clara, California-based company's stock price to drop about 17 percent, causing losses of more than $931 million, prosecutors said.
An attorney for Davis, who faces a maximum 10 years in prison, a fine of $250,000 and restitution for damages caused by his conduct, said his client was satisfied with the plea.
"As to the criminal charges, we are satisfied with the plea and we certainly acknowledge our responsibility," attorney Tom Nolan said. "We are going to continue to fully cooperate with the investigation."
