The Deal
Saturday, November 21, 
3:54 pm

Police Blotter: Jan. 18, 2007

  Share     E-Mail    Discussion    Print Story

Sixty-four-year-old former Cendant Corp. chairman Walter Forbes will not be spending his retirement years in a posh retirement community but instead in the cold confines of a jail cell. Forbes was sentenced Wednesday, Jan. 17, to 12 years and seven months in prison as well as required to pay $3.275 billion for his part in one of the largest corporate accounting scandals in history. Prosecutors say that Forbes participated in a scheme to inflate the stock of Cendant's predecessor, CUC International, by $500 million. The fraud was disclosed on April 15, 1998, causing Cendant's market value to drop by $14 billion that day. Jurors convicted Forbes of conspiracy and two counts of false reporting to the U.S. Securities and Exchange Commission.

Today, the company once known by the name Cendant no longer operates as a conglomerate and under a new name. The Parsippany, N.J.-based company went on to spin off its various businesses into four separate companies: its real estate unit became Wyndham Worldwide Corp; its hotels division became Realogy Corp.; and its car rentals unit became Avis Budget Group Inc. Meanwhile, Cendant sold its travel business, the Travelport Inc., to the Blackstone Group for $4.3 billion on June 30, 2006. — Gerald Magpily

See Bloomberg article

Continue reading below

Also on Dealscape





Post a comment





The Deal Pipeline

Deal Video


Inside The Deal: Avaya Inc.'s Mohamad Ali on the company's next target.


More video...

Crisis On Wall Street
Technology
Deals of The Decade

Community

Industry Insight

Managing your shareholder base

Growth companies and their PE sponsors should be wary of the pitfalls that arise when they layer on tiers of preferred stock.


Industry Insight

Easing the stress of distressed M&A

Corporate buyers face numerous complexities when trying to identify the right moment to purchase a distressed asset.


Editor's Note

Editor's letter: Nov. 16, 2009

Beneath the veneer of Wall Streeters beats the same heart, stirred by the same determinants of behavior.


footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg footspacer.jpg


©Copyright 2009, The Deal, LLC. All rights reserved. Please send all technical questions, comments or concerns to the Webmaster.