Executives of defunct tech firm charged

Friday September 06, 2002

LOS ANGELES — Federal prosecutors announced a 36-count grand jury indictment Thursday against four executives charged with defrauding investors in a public technology company of $140 million in a “cook the books” scheme. 

Prosecutors allege three senior officers and an outside director of NewCom Inc. illegally inflated sales before Westlake Village firm’s 1997 initial public offering. 

In one case, a $3.7 million purchase order was allegedly recorded from a nonexistent company. 

“This case illustrates the serious and corrosive nature of crimes committed by corporate insiders, crimes which have affected too many companies in America and have shaken the nation’s faith in the securities markets,” U.S. Attorney Debra Yang said.