Charles McCall, former chairman of McKesson Corp., was was convicted today on charges of securities fraud and circumventing accounting rules. He was also acquitted of falsifying records. Bloomberg reports that former McKesson General Counsel Jay Lapine was found not guilty of three charges.
Bloomberg reports that both McCall and Lapine were accused of hiding backdated sales contracts from auditors and improperly inflated revenue figures at McKesson. Prosecutors alleged that McCall learned of the practices a few months before HBO was to be acquired, but covered up the fraud and was named chairman of the merged company.
McCall and Lapine were previously acquitted in 2006 of conspiracy, but jurors couldn’t agree on accusations of securities fraud, falsifying books and circumventing accounting rules. Prosecutors retried them on the latter charges.