Ex-CEO of Long Island Tech Company Declared Fugitive
Tomo Razmilovic’s lawyer told federal prosecutors that his client would not face arraignment, the Associated Press reported. He had been living in England since leaving the company two years ago, and prosecutors believe he left for Croatia.
The former president of the Long Island-based maker of bar-code scanners and wireless networks faces securities fraud and other charges. A warrant has been issued for his arrest in the United Kingdom, and Interpol has been notified, according to a spokesman for U.S. Attorney Roslynn Mauskopf.
Razmilovic, six other former executives of Symbol Technologies Inc. and their chief legal counsel are accused of inflating the company’s earnings by more than$200 million to meet Wall Street expectations and pad their own incomes. The accounting schemes allegedly included recording sales of products to vendors who made no commitment to buy them; overstating expenses to create a reserve that could be used to inflate results; allowing executives to set their own prices when exercising stock options; and making false accounting entries to bolster the bottom line, AP reported.
The company has already agreed to pay $139 million in fines and restitution, including $37 million to settle a Securities and Exchange Commission investigation alleging fraud between 1998 and early 2003. The SEC also accused the company of interfering with its inquiry by destroying or withholding incriminating information.
Five former managers have previously pleaded guilty to conspiracy charges.