SAN FRANCISCO (Thomson Financial) - A $29.5 million severance package has
been withheld from a former chief executive of Gemstar-TV Guide International
Inc. who committed securities fraud before leaving his post at the company, the
Securities and Exchange Commission said Wednesday.
The funds were previously set aside in an escrow account that will now be
dissolved so that the money remains with the company and its shareholders, the
agency said.
The SEC said it was able to stop the payment to Henry Yuen, the ex-CEO of
the Pasadena, Calif.-based company, through a provision in the Sarbanes-Oxley
Act. The provision allows the commission to seek a temporary order from a
federal district court requiring the company to hold "extraordinary payments"
likely to be made to any officer, director, or affiliate of the company who is
charged with a violation of the securities laws.
The SEC charged Yuen with various violations of the federal securities laws
in 2003. He was later found guilty on all claims and forced to pay more than $22
million in financial penalties.
The forfeiture of his severance payment will bring the total financial cost
to more than $51 million for Yuen in the wake of his securities fraud
violations, the agency said.
Gemstar shares were up a penny at $4.76.
Katherine Hunt
kh/vj
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