A federal judge has ordered a former chief executive to pay $3.5 million and serve more than nine years in prison for his part in a scheme that plunged his company into bankruptcy in 2001. The former executive of National Environmental Services Co. (Nesco), Eddy Lynn Patterson, was convicted in December on 22 counts of conspiracy, fraud, tax evasion and making false statements on loan documents, the Associated Press reported. His September 1 sentencing called for a federal prison term of nine year and two months.

The Securities and Exchange Commission (SEC) announced this week settled enforcement actions against Timothy J. Miller, the former chief investment officer and a portfolio manager for Invesco Funds Group, Inc. (IFG); Thomas A. Kolbe, the former national sales manager of IFG; and Michael D. Legoski, a former assistant vice president in IFG's sales department. The Commission issued orders alleging that Miller, Kolbe and Legoski violated federal securities laws by facilitating widespread market timing trading in certain Invesco funds in contravention of those funds' public disclosures.

AFC Enterprises wants its former accounting firm, Arthur Andersen, to pay back the fees it received from the fast-food chain from 2000 to 2002 and to cover the cost of professional fees it took to get its books back in order."We relied on Arthur Andersen to tell us if we had violated any generally accepted accounting procedures and standards, and they did not do that," said Neal Pope, whose law firm represents AFC.According to the Associated Press, the suit, which alleges malpractice and breach of contract, seeks unspecified monetary damages from Andersen.

Conrad Black, the former CEO of Hollinger International, boldly and methodically abused his power to pocket millions of dollars that should have gone to the company, an internal investigation revealed.Three outside Hollinger directors prepared the dramatic, 500-page report, filed with the Securities and Exchange Commission on Tuesday.

Using a copy machine and correction fluid, an inmate at Missouri Eastern Correctional Center created 66 false tax returns that cost taxpayers more than $73,000, a federal indictment says.AdvertisementAccounting Department Policy Groups Offered By PolicySoftOver 200 accounting department

Federal and state law enforcement agencies have teamed together in recent weeks to arrest or charge dozens of people with crimes related to online scams, the New York Times reported.Since Congress passed a law last year that calls for fines and prison sentences for those convicted of sending fake e-mails, efforts have multiplied to fight spammers. Some Internet abusers send millions of junk e-mail messages; others commit identity theft; some perpetrate credit card fraud and other financial crimes.

Small businesses, elderly investors, a church group and the Palm Beach County Police Benevolent Association were among the victims of a scheme that paid for the sex addiction of a Broward County certified public accountant, the Sun-Sentinal reported.Thomas E. Sewell was sentenced Monday in Fort Lauderdale by U.S.

The Securities and Exchange Commission has banned a former HealthSouth executive from working as an accountant at a public company.The SEC's Monday action against Kenneth K. Livesay, assistant comptroller at HealthSouth from 1989 to 1999, comes as Livesay faces accusations of ordering employees to record false assets for the Birmingham-based company, the Washington Post reported.Livesay accepted the ban without admitting or denying wrongdoing, the SEC said.

Failed dairy giant Parmalat continued efforts to save itself Wednesday by filing suit against its former auditors for more than $10 billion.According to the Wall Street Journal, bankruptcy administrator Enrico Bondi is working to recover sizable damages for creditors, swap creditors' debt for equity and create a “pared-down, cleaned-up, newly listed Parmalat.”Wednesday's suit was filed against Deloitte & Touche Tohmatsu International and Grant Thornton International in Circuit Court of Cook County, Ill.