On Wednesday, a federal court jury in Detroit found the former CEO and CFO of auto supplier Hayes Lemmerz International Inc. liable in a securities fraud case brought by the SEC. According to the Detroit News, the two men were charged with concealing the company’s poor financial health and covering up a multi-year accounting fraud.
The SEC said the jury verdicts against former CEO Ranko “Ron” Cucuz and former CFO William Shovers sent a message to executives. “This outcome demonstrates that senior executives who learn that their company is cooking the books cannot just cover it up or hide their heads in the sand. They must come clean or face liability,” said David J.Gottesman, the SEC’s assistant chief litigation counsel.
