American Greed

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8. Cendant

Status: Settled 2000
Amount: $3.1 billion

A lawsuit representing all investors who held stock in Cendant from May 31, 1995 through Aug. 28, 1991, was filed against the company for securities fraud. In 1998, Cendant disclosed that for the prior 10 years the company had been fraudulently overstating its income by up to $500 million. Executives created false profit statements which caused an increase in the value of the company’s stock.

When the false profits were discovered, the value of the company collapsed. In addition to being sentenced to jail, former Vice Chairman Kirk Shelton was ordered to reimburse Cendant $3.27 billion at a monthly rate of $2,000.

Source: LawInfo.com

Photo Credit: AP Graphics