Feds: Disgraced exec and wife divorcing in Conn. to avoid paying $3.2 billion in restitution
By APThursday, June 18, 2009
Feds: Exec’s divorce a ploy to dodge $3.2B payout
BRIDGEPORT, Conn. — Federal prosecutors in Connecticut say a former executive involved in a major accounting scandal is trying to divorce his wife to get out of paying $3.2 billion in restitution.
Walter Forbes is the former chairman of Cendant Corp., which owned hotel, car rental and residential real estate companies. He was convicted of conspiracy to commit securities fraud and sentenced in 2007 to more than 12 years in prison.
His wife, Caren, has filed for divorce in Bridgeport Superior Court. She says their marriage of 27 years has broken down “irretrievably.”
Prosecutors say it’s a ploy and have asked to intervene. They say Walter Forbes sold the family’s nearly $6 million house to his wife for $10.
A hearing on the divorce, scheduled earlier this week, has been delayed indefinitely.
Information from: Connecticut Post, www.connpost.com
Tags: Bridgeport, Conn., Connecticut, Corporate Crime, Corporate Governance, Divorce And Separations, Fraud And False Statements, North America, Personal Finance, Personal Spending, United States, Us-divorce-dodging-restitution
