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Former ClearOne Executives Face Trial for Accounting Fraud

Former ClearOne Executives Face Trial for Accounting Fraud



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SALT LAKE CITY (AP) -- Two former ClearOne Communications executives were ordered to face trial on charges of inflating company revenue by shipping products to distributors who didn't order them.

Salt Lake City-based ClearOne sells audio and video conferencing equipment.

U.S. District Judge Dee Benson scheduled a three-week trial starting Jan. 22 for Frances Flood, who was chief executive, and Susie Strohm, who was chief financial officer. Both women are charged with securities fraud, conspiracy and making false statements to an accountant.

Federal prosecutors say Flood and Strohm shipped millions of dollars of products starting in 2001 to distributors who had not ordered them on a "pay-as-you-go" basis "to portray ClearOne as a company that was growing and profitable."

Both women have denied any wrongdoing.

If convicted on all counts, they could face up to 20 years in prison and hefty fines.

Information from: Deseret Morning News (Copyright 2007 by The Associated Press. All Rights Reserved.)

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