Citing Case B. United States District Court, D. Attorney s appearing for the Case Brendan L.
Who wants the 16? Senior executives, including Jo Lernout and Pol Hauspie, were found guilty, but the two organisations with the resources to pay investors — Dexia bank and auditors KPMG — were both Lernout hauspie. Opinions now differ on whether shareholders now stand a chance of seeing any compensation.
Lernout and Hauspie were found guilty of fraud and given the maximum sentence requested by the prosecution - five years imprisonment, although two years of that is suspended. Directors Nico Wilaert and Gaston Bastiaens were given the same sentences, although three years of Bastiaens' sentence were suspended.
The same sentence went to Tony Snauwaert, responsible for helping to build up the network of fictitious clients who made LHSP look so attractive to investors. Eight other executives were acquitted.
Dexia, the bank of LHSP, was also acquitted. The court found the bank had not collaborated in the fraud scheme.
Auditors KPMG, likewise, were found not to be responsible. The decision could leave the door open to pursuits by shareholders, who had been hoping for the conviction of either Dexia or KPMG, or both.
Van Aerde could theoretically be sued and claims made to his insurer for damages. The civil part of the trial comes later, but an acquittal in one means the party is out of reach in the other.
The lawyer of KPMG, who also represents Van Aerde, said investors would have trouble making their case in the civil part. Van Aerde, meanwhile, will appeal his conviction to the Cassation Court, on the grounds he was convicted of neglect only and not of fraud.
However, prominent experts argue his culpability may leave KPMG open to claims. Professor Bernard Tilleman, professor of business law at the Catholic University of Leuven, and Professor Thierry Vansweevelt of the University of Antwerp both agreed that the company can be sued over the actions of their representative, in this case Van Aerde.
Jo Lernout also intends to appeal to Cassation, but Hauspie, identified in the court's verdict as the "brains" behind the fraud scheme, will not."save a copy", and customize your own content and layout. The founders of Lernout & Hauspie, a maker of speech-recognition software, were found guilty of fraud and sentenced to five years in jail for their roles in an accounting scandal that led to the.
Lernout & Hauspie Speech Products, or L&H, was a leading Belgium-based speech recognition technology company, founded by Jo Lernout and Pol Hauspie, that went bankrupt in because of a fraud engineered by management. "Lernout & Hauspie used almost every accounting trick in the book to scam investors, which led to the company's demise," said Berman DeValerio partner Jeffrey C.
Block. "The recovery is a win for investors, particularly considering the company went bankrupt.". Defendants Jo Lernout and Pol Hauspie created FLV in , and were directors of the fund's management arm from until According to the Wall Street Journal which, as discussed in Lernout I, broke the story of securities fraud at L & H Lernout and Hauspie maintained "considerable sway" over FLV's affairs even after Jul 08, · Lernout & Hauspie is the stock that cemented Mr.
Cohodes' reputation. The battle between Lernout and Rocker was one of the ugliest ever between short-sellers and .