Gemstar-TV Guide International
chief Henry C. Yuen was ordered to pay $22.3 million for his role in an accounting fraud at the publisher.
A federal judge ruled against Yuen following a three week trial in December of last year. U.S. District Judge Mariana R. Pfaelzer found that Yuen had "committed securities fraud by making misrepresentations and omissions of material fact about certain Gemstar revenues, that Yuen aided and abetted Gemstar's primary violations of the periodic reporting and record keeping control requirements, and that Yuen lied to Gemstar's auditors."
Yuen will also be permanently barred from serving as an officer or director of a public company.
Securities and Exchange Commission
celebrated its victory in the case.
"We are pleased that the district court so soundly rejected Henry Yuen's attempts to evade responsibility for the fraud he orchestrated at Gemstar-TV Guide," said Randall Lee, the SEC's Pacific regional director, in a statement. "The financial judgment and the permanent bar against future service as an officer or director reflect the seriousness of Yuen's misconduct and the vital importance of punishing and deterring securities law violations which harm the investing public."
Gemstar-TV Guide publishes
magazine and a televised programming guide which it both licenses to operators and generates ad revenue from.
On May 4, the company reported first-quarter net income of $8.2 million, or 2 cents a share. That compared to a year-ago loss of $3.7 million, or a penny a share, during the same quarter of 2005.
On Tuesday shares in Gemstar were unchanged at $3.56.