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3 Ex-AremisSoft Executives Indicted

June 24, 2002

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NEW YORK (AP) _ Three former executives with software maker AremisSoft Corp. were charged Monday with insider trading, money laundering, accounting fraud and other offenses.

A securities fraud indictment filed in federal court in Manhattan accuses the company’s former co-CEOs, Lycourgos Kyprianou and Roys Poyiadjis, and its former president, M.C. Mathews, of conspiring to bilk shareholders out of hundreds of millions of dollars.

Kyprianou, 47, and Poyiadjis, 36, who would face up to 20 years in prison if convicted, remain at large in Cyprus, prosecutors said. Mathews, who would face up to 10 years, is at large in India.

From 1999 through 2001, the defendants allegedly hatched a scheme to inflate the company’s stock by fabricating $90 million in fictitious earnings and announcing multimillion-dollar acquisitions of sham software companies. The scheme resulted in $250 million in insider-trading profits, which were laundered through offshore bank accounts, court papers said.

Authorities said they had seized about $175 million in the illicit proceeds in bank accounts in the Isle of Man.

AremisSoft _ a maker of software and Internet solutions for the manufacturing, hospitality, health care and construction industries _ filed bankruptcy earlier this year amid a Securities and Exchange Commission investigation and moved its headquarters from New Jersey to Minnesota.

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