Getting your player ready...
Former Kmart Corp. CEO Charles Conaway, below, should pay a fine of about $24 million for misleading shareholders in the months before the retailer filed for bankruptcy in 2002, a Securities and Exchange Commission U.S. lawyer told a judge.
A Michigan jury in June found Conaway hid information about the company’s cash crunch in the fall of 2001. U.S. Magistrate Judge Steven Pepe began a hearing Wednesday in federal court in Ann Arbor, Mich., on possible penalties. Conaway has shown “no remorse” for his actions, the SEC said in court papers July 30.
Conaway testified Wednesday that he made mistakes but didn’t profit from the retailer’s collapse into bankruptcy.
The SEC sued Conaway in 2005. Bloomberg News
