NEW YORK Former Duane Reade CEO Tony Cuti was convicted Tuesday of conspiracy and securities fraud, according to published reports. Former Duane Reade CFO William Tennant, who also was convicted, was found guilty of securities fraud.
Both face up to 20 years in prison. Cuti is to be sentenced on Nov. 15.
Tennant is to be sentenced on Dec. 6. The judge permitted both men to remain free on bond until they are sentenced.
Reid Weingarten, a lawyer for Cuti, and John Kenney, a lawyer for Tennant, both declined comment about the verdict after court was adjourned, according to reports.
Afederal jury in New York found Cuti and Tennant guilty of scheming to falsely inflate the income and reduce the expenses that the Manhattan-based drug chain reported to investors.
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, prosecutors said.