Great news for VTSS shareholders;
Vitesse Semiconductor. founder Louis Tomasetta and Eugene Hovanec were sentenced in Manhattan federal court to three months of probation. Prosecutors had accused Tomasetta and Hovanec of inflating company earnings and backdating stock options. The defendants each faced up to five years in prison. But in a rare move, prosecutors recommended probation, citing "uniquefactual circumstances."They admitted in August that they conspired to destroy or falsify records related to Vitesse's April and October 2001 stock option grants.
Tomasetta and Hovanec admitted that in 2006, they and athird executive, Yatin Mody, had fabricated minutes for twomeetings in 2001 of Vitesse's compensation committee. Mody, a former chief financial officer, and Nicole Kaplan, aformer director of accounting, pleaded guilty to fraud in 2010 and cooperated with prosecutors. Sentencings are scheduled forJan. 8 for Kaplan and Jan. 9 for Mody.
In September, Tomasetta agreed to pay $100,000 and Hovanec$50,000 in civil fines in settlements with the U.S. Securitiesand Exchange Commission. Vitesse settled with theSEC for $3 million in 2010.
Wow! Between the 2 of these crooks they walked away with 10s of millions of dollars. Small shareholders got screwed by these two and many lost savings and got hurt financially. Unbelieveable what the rich are getting away with in this country. It's too embarassing to be an American right now. The middle class is being crushed out of existence, the ranks of the poor grow everyday, wealth inequality is at its greatest in history. The government is dysfunctional because politicians only care about their special interests and it's only going to get worse. And don't tell me it's Obama's fault. I'm tired of that excuse. All of them are at fault. Hope Lou enjoys that 20 million dollar home he built in Ojai. It will be his prison.
Meanwhile a person walking down the street can be pushed against the wall frisked jailed and held with out charges indefinitely for no reason..... USA we use to be a great nation.