McKesson Corporation : U.S. Supreme Court Rejects Appeal by Ex-McKesson Chairman
06/18/2012| 10:32am US/Eastern
By Brent Kendall
WASHINGTON--The U.S. Supreme Court on Monday refused to consider former McKesson Corp. (MCK) Chairman Charles McCall's challenge to his 2009 conviction on securities fraud charges.
Mr. McCall, who was sentenced to 10 years in prison, was convicted for his role in a 1999 accounting scandal that erased more than $8 billion in shareholder value.
Mr. McCall was chief executive of HBO & Co., a health-care software company that McKesson, a leading U.S. drug distributor, acquired in 1999.
Prosecutors said Mr. McCall inflated company revenue figures both before and after the merger.
In his appeal to the Supreme Court, Mr. McCall argued that jury instructions in the case allowed prosecutors to obtain a conviction even if he didn't willfully commit a crime.
A first trial in 2006 ended in a mistrial after a jury acquitted Mr. McCall on one charge but deadlocked on others. A second jury convicted him on four counts of securities fraud and one count of circumventing internal accounting controls.
A San Francisco-based appeals court affirmed Mr. McCall's conviction last year. The Supreme Court let that ruling stand without comment.
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