Walter Forbes

In November 2006, after eight years and three trials, Walter Forbes, former Chairman of Cendant Corp., was convicted of conspiracy and making false statements to the SEC. In 2001, Forbes was indicted, along with Vice Chairman, E. Kirk Shelton and other executives, of bilking investors out of more than $3 billion in a massive accounting fraud considered to be the largest of the 1990s accounting scandals. Forbes claimed that he knew nothing of the fraud and blamed his Shelton and others. A number of executives pled guilty and agreed to testify against both Forbes and Shelton. Shelton was convicted in 2005 of conspiracy, mail fraud, wire fraud, securities fraud and making false statements to the SEC and sentenced to 10 years in prison. On January 17, 2007, Forbes was sentenced to 12½ years in prison and ordered to pay some $3.3 billion in fines and restitution. Forbes' sentence is currently on appeal.