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SEC charges former Kmart executives with fraud

[JURIST] The US Securities and Exchange Commission Tuesday filed fraud charges [PDF complaint; SEC press release] against two former Kmart [corporate website] executives for misleading investors about Kmart's financial future before the company filed for bankruptcy in January 2002. Former Chief Executive Officer Charles C. Conaway and former Chief Financial Officer John T. McDonald allegedly disclosed "materially false and misleading" information about the company's liquidity in the company's Form 10-Q and in an earnings conference call with analysts and investors. Tuesday's SEC charges follow an arbitration panel clearing Conaway on civil charges [AP report] of fraud, mismanagement and corporate looting. Read the SEC litigation release. Bloomberg has more.

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