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Controller Sentenced in Sales Fraud

July 01, 1998|PATRICE APODACA | TIMES STAFF WRITER

Douglas Roy, former controller of the now-defunct Home Theater Products International Inc., has been sentenced to six months' home detention for his role in a bogus sales scheme at the Anaheim company.

Roy, a 29-year-old Pomona resident, pleaded guilty last September to conspiracy to commit securities fraud and could have received up to five years in prison. In addition to the home detention, he was placed on three years' probation by U.S. District Judge Gary L. Taylor in Santa Ana.

Roy could be ordered to pay up to $250,000, but Taylor has not decided on a fine. Roy earlier agreed to pay $36,500 to settle a lawsuit by the Securities and Exchange Commission stemming from the fraud, but the payment was waived after it was determined he didn't have the money.

He is one of three executives convicted in the scheme to falsify Home Theater's books and inflate its sales and income from 1993 to October 1995. The company made electronic home entertainment products.

Home Theater's former president, Jerome A. Adamo, 62, pleaded guilty to insider trading; he was sentenced to six months of home detention and two years' probation, and was ordered to pay $50,000.

Paul R. Safronchik, 37, former chairman and chief executive of Home Theater, pleaded guilty in December 1996 to bank fraud, securities fraud and conspiracy. He is due to be sentenced Aug. 1 and faces up to 45 years in prison and a maximum fine of $1.5 million.

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