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2 Ex-Cendant Execs Plead Not Guilty

July 31, 2001|Bloomberg News

Cendant Corp.'s former Chairman Walter A. Forbes and ex-Vice Chairman E. Kirk Shelton pleaded not guilty for a second time to federal charges of reporting inflated company earnings over 12 years.

Forbes and Shelton entered the pleas through their attorneys, at their first court appearances since a grand jury returned a July 18 indictment expanding earlier charges. U.S. District Judge William H. Walls moved the trial date to May 7, 2002, from March 25, after defense attorneys asked for more time to prepare.

Forbes, 58, and Shelton, 46, face charges of conspiracy, securities fraud, wire fraud, mail fraud, and making false statements to the Securities and Exchange Commission.

They're accused of reporting inflated earnings at CUC International Inc. to regulators and investors to promote the December 1997 merger with HFS Inc. that created Cendant.

New York-based Cendant shares fell 31 cents to $20.51 on the NYSE.

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