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Forbes Guilty in Cendant Case

He is found guilty of conspiracy to commit securities fraud.
Author:

Walter Forbes, the former chairman of the company previously known as

Cendant

, was found guilty by a jury of conspiracy to commit securities fraud and two counts of making false statements.

The jury determined Forbes wasn't guilty of committing securities fraud.

Prosecutors contended that Forbes took part in a plan to artificially inflate the stock of CUC International, one of Cendant's predecessors, by $500 million. Forbes said he didn't know anything about the scheme.

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Forbes was the CEO of CUC when the company merged with HFS in 1997, forming Cendant. Cendant is now known as

Avis Budget Group

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.

The year after Cendant was created, investors learned about the fraud plot, sending them fleeing from the stock. E. Kirk Shelton, the ex-vice chairman at Cendant, was convicted last year of conspiracy, mail fraud, wire fraud and other charges.