Two former Medical Manager executives found guilty for $16.8 million fraud scheme

March 3rd, 2010 - 3:45 am ICT by BNO News  

CHARLESTON, SOUTH CAROLINA (BNO NEWS) –- In Charleston, South Carolina, Two former executives of Medical Manager Health Systems Inc. (Medical Manager) were convicted with participating in a conspiracy to fraudulently inflate the reported earnings of Medical Care by more than $16.8 million, prosecutors announced on Tuesday.

Former Medical Manager president John H. Kang, 46. Of Trabuco Canyon, California, and former vice president and chief operating officer John P. Sessions, of Myrtle Beach, South Carolina, were indicted on February 7 along with some other Corporate executives for their role in the operation.

The defendants engaged in fraudulent accounting practices intended to artificially inflate the quarterly revenues of Medical Manager in order to meet and surpassed the financial analysts and fraudulently inflate the market price of Medical Manager stock.

“These defendants were supposed to lead their company with honor and integrity. Instead, they orchestrated an elaborate accounting scheme mean to defraud investors about the financial success of their company,” said a U.S attorney.

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