Washington – Two former executives of Bristol-Myers Squibb Co., previously indicted on criminal conspiracy and securities fraud charges, were sued Monday by federal regulators who accused them of civil fraud in orchestrating a $1.5 billion scheme to deceive investors.
The Securities and Exchange Commission announced the lawsuit against Frederick Schiff, Bristol-Myers’ former chief financial officer, and Richard Lane, former executive vice president and president of the pharmaceutical company’s worldwide medicines group.
The SEC is seeking unspecified civil penalties against the two. The suit accuses them of instructing staff in 2000-01 to create incentive packages for the company’s biggest wholesalers to inflate sales and profit figures, while misleading Wall Street analysts and investors.
Schiff and Lane pleaded not guilty in June to the criminal charges, for which they could face up to 10 years in prison and $1 million in fines if convicted.
