Former Duane Read Executives Convicted of Securities Fraud
The former chief executive officer (CEO) and chief financial officer (CFO) of the New York City chemist chain Duane Read have been convicted of securities fraud. A federal jury in Manhattan 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, Cuti and 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.