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Despite pleas and statements from friends and family members portraying former ClearOne Communications CEO Frances Flood as a compassionate woman who’s even earned a ministerial degree, a judge sentenced Flood this past Wednesday to 4 years in federal prison for artificially inflating the company’s 2001- 02 revenues to increase its share price. ClearOne’s CFO Susie Strohm was sentenced to 2 years probation for perjury. ClearOne is a Utah-based maker of video and audio conferencing equipment.
Flood maintained her innocence, claiming that board members knew about every decision she was making. Prosecutors however, convinced jurors that Flood persuaded ClearOne’s distributors to accept products they didn’t order by promising them that they didn’t have to pay for merchandise until it was sold. ClearOne then reported those shipments as sales, artificially inflating revenue.
Source: Salt Lake Tribune
