Former GemStar CEO ordered to pay over $22 mil. after trial
Henry C. Yuen, the former chairman and chief executive officer of Gemstar-TV Guide International was ordered after a three week trial to pay over $22 million in disgorgement and penalties by the court. The SEC’s action claimed that Yuen knew but failed to disclose the fact that Gemstar was improperly recognizing and reporting revenue in an effort to meet projections for revenue growth. The complaint alleged that revenue was overstated by at least $248 million. After finding violations of the antifraud and reporting provisions of the Securities Act and the Exchange Act the court ordered Yuen to pay approximately $10.5 million in disgorgement as ill-gotten bonuses and trading profits obtained from his fraudulent conduct and an equal amount as a penalty. Yuen was also barred from being an officer or director of a public company.