Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  FedEx Corporation    FDX

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

FedEx Corporation : CEO in fraud case needs more than seven days prison: court

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/15/2013 | 06:42pm CEST

A former chief executive who pleaded guilty to wrongdoing in a scheme that ultimately helped drive his company into bankruptcy could have been sent to prison for 10 years. The trial judge thought seven days was fair.

Not long enough, a federal appeals court said on Friday.

The 6th U.S. Circuit Court of Appeals said Michael Peppel, the former chief executive of the audio-visual technology company MCSi Inc, must be resentenced for his 2010 guilty plea to charges of conspiracy to commit fraud, false certification of a financial report, and money laundering.

U.S. District Judge Sandra Beckwith in Cincinnati abused her discretion in sentencing Peppel to an "unreasonably low" week behind bars based almost solely on her belief that the defendant was "a remarkably good man," the appeals court said.

Prosecutors had charged Peppel in December 2006 over an alleged fraud they said had begun six years earlier, amid financial difficulties at his publicly traded, Dayton, Ohio-based company.

Peppel was accused of working with his chief financial officer to inflate results through sham transactions with a firm called Mercatum Ltd, and companies such as FedEx Corp that were not implicated in wrongdoing. Prosecutors said he also sold $6.8 million of MCSi stock during this time.

By the end of 2003, MSCI was bankrupt, and a reported 1,300 people had lost their jobs.

Citing the need to punish Peppel and deter others, the government asked Beckwith at his October 2011 sentencing to impose a 97- to 121-month prison term. This was the length recommended, but not required, under federal guidelines.

But the judge said the five years since the indictment had been "punishing, literally and figuratively" for Peppel, who had begun working for an online pharmacy to support his five children. He also had a brother with multiple sclerosis.

"Michael's mistakes do not define him," Beckwith said. "I see it to be wasteful for the government to spend taxpayers' money to incarcerate someone that has the ability to create so much for this country and economy."

She also imposed a $5 million fine and the maximum three years of supervised release.

Circuit Judge Karen Nelson Moore, however, wrote for a unanimous three-judge appeals court panel that Beckwith was wrong to rely on "unremarkable aspects" of Peppel's life in imposing a "99.9975% reduction" to the recommended prison term.

"There is nothing to indicate that the support provided by Peppel to his family, friends, business associates, and community is in any way unique or more substantial than any other defendant who faces a custodial sentence," Moore wrote.

Beckwith was not immediately available for comment.

Ralph Kohnen, a lawyer for Peppel, on Friday said: "We expect that the judge will exercise the same common sense and fairness in imposing a similar sentence on remand."

U.S. Attorney Carter Stewart in a statement said he will seek a longer sentence, and that seven days "did not reflect the seriousness of the crime or create any measure of deterrence."

In November 2011, Beckwith sentenced MCSi's former CFO to one day in prison, plus three years supervised release and a $12,500 fine, court records show.

The case is U.S. v. Peppel, 6th U.S. Circuit Court of Appeals, No. 11-4327.

(Reporting by Jonathan Stempel in New York; Editing by Martha Graybow and Leslie Gevirtz)

By Jonathan Stempel

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on FEDEX CORPORATION
12:33a New computer virus spreads from Ukraine to disrupt world business
06/28 FEDEX : briefly halts trading, issues statement on cyberattack
06/28 FEDEX CORP : Other Events, Financial Statements and Exhibits (form 8-K)
06/28 FEDEX : says operations at TNT Express disrupted after virus attack
06/28 FEDEX : says deliveries by its TNT Express subsidiary have been slowed by global..
06/28 FEDEX : TNT Express Operations Disrupted
06/28 THE LATEST : FedEx cyberattack damage 'could be material'
06/28 FEDEX : TNT deliver Iftar packs to the needy in UAE
06/27 FEDEX : Courier Returns to American Ninja Warrior
06/27 FEDEX : progress - FedEx reports record quarter, year, aided by increased volume..
More news
Sector news : Air Freight & Logistics - NEC
06/28DJUNITED PARCEL SERVICE : Correction to UPS Pensions Article (on Tuesday)
06/28 Factbox - Companies hit by global ransomware attack on June 27
06/28 DEUTSCHE POST : Germany's BSI says Petya malware used in cyber attacks
06/27DJUNITED PARCEL SERVICE : UPS to Freeze Pension Plans for Nonunion Staffers -- 4th..
06/27DJUNITED PARCEL SERVICE : UPS to Freeze Pension Plans for Nonunion Staffers -- 3rd..
More sector news : Air Freight & Logistics - NEC
News from SeekingAlpha
06/28 FedEx updates on TNT Express cyber attack
06/28 Trading halt on FedEx with announcement on the way
06/28 Opportunities In Cyber Security After Growing Number Of Ransomware Attacks
06/27 Network outages hit TNT Express
06/27 3 More Companies Amazon Might Compete With
Advertisement
Financials ($)
Sales 2018 63 472 M
EBIT 2018 6 023 M
Net income 2018 3 573 M
Debt 2018 10 556 M
Yield 2018 0,91%
P/E ratio 2018 16,24
P/E ratio 2019 14,08
EV / Sales 2018 1,07x
EV / Sales 2019 1,01x
Capitalization 57 306 M
More Financials
Chart FEDEX CORPORATION
Duration : Period :
FedEx Corporation Technical Analysis Chart | FDX | US31428X1063 | 4-Traders
Full-screen chart
Technical analysis trends FEDEX CORPORATION
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 27
Average target price 230 $
Spread / Average Target 7,1%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Frederick Wallace Smith Chairman & Chief Executive Officer
David J. Bronczek President & Chief Operating Officer
Alan B. Graf Chief Financial Officer & Executive Vice President
Rob B. Carter Chief Information Officer
James L. Barksdale Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
FEDEX CORPORATION15.11%57 306
UNITED PARCEL SERVICE-4.34%95 168
DEUTSCHE POST6.48%44 763
EXPEDITORS INTERNATION..5.55%10 050
YAMATO HOLDINGS CO., L..-3.24%8 532
ROYAL MAIL-7.73%5 464
More Results