The former chief executive and chief financial officer of the New York City drugstore chain Duane Read have been convicted of securities fraud.
A federal jury in Manhattan Tuesday found Anthony Cuti and William Tennant guilty of scheming to falsely inflate the income and reduce the expenses that Duane Reade reported to investors.
Prosecutors say that from November 2000 through June 2005, 64-year-old Cuti and 62-year-old Tennant reported inflated income from fraudulent real estate transactions and reduced company expenses through fictitious credits from vendors.
Both face up to 20 years in prison. Cuti, of Saddle River, N.J., is to be sentenced on Nov. 15. Tennant, of Richmond, Va., is to be sentenced on Dec. 6.