Monday, March 24, 2008

Happy Easter - Senators Owner Charged With Fraud

Eugene Melnyk looks like the next Ottawa Senator owner in line for a mind-blowing flameout of his empire. Both previous owners, Bruce Firestone and Rod Bryden went tits up financially but Melnyk has added a new twist in that he intends to go out fighting massive fraud charges.

Perhaps a nice, clean and respectable gentleman like millionaire Ottawa mayor Larry O'Brien should buy the team. Oh wait... he's been charged for influence peddling. Is there a virtuous rich man left in Ottawa?

The Globe and Mail's Richard Blackwell has the story on Biovail Corp's $10 million fine and the charges against Eugene:

"The U.S. Securities and Exchange Commission has charged Biovail Corp. ... , its founder Eugene Melnyk, and three other current and former executives with accounting fraud. ...

The SEC alleges that the executives, “obsessed with meeting quarterly and annual earnings guidance, repeatedly overstated earnings and hid losses in order to deceive investors and create the appearance of achieving earnings goals.” When it became impossible to continue concealing Biovail's inability to meet its own earnings guidance, the company “actively misled investors and analysts about the reasons for the company's poor performance,” the SEC said. The Ontario Securities Commission has also filed a statement of allegation against the company and the same employees, with many of the same claims."

This just isn't the Senators year.

No comments: