Retail News Breaks
Former Duane Reade CEO Cuti convicted of fraud
June 9th, 2010
NEW YORK – Anthony Cuti, former chief executive officer of metropolitan New York drug chain Duane Reade, has been convicted in federal court of securities fraud and other charges, according to published reports.
In addition, former Duane Reade chief financial officer William Tennant has been convicted of securities fraud, reports said.
Cuti and Tennant in 2008 were charged by federal prosecutors with misleading investors by falsely inflating Duane Reade's income and reducing expenses between 2000 and 2005, Reuters reported.
Cuti was found guilty of securities fraud, conspiracy and making false statements, while Tennant was convicted of securities fraud but acquitted of the other charges, according to the Reuters report.
Both Cuti, 64, and Tennant, 62, face up to 20 years in prison, the Associated Press reported. Cuti is slated to be sentenced Nov. 15, and Tennant is due to be sentenced Dec. 6, AP said.
Duane Reade, which has 258 drug stores in the metro New York area, primarily in Manhattan, was sold to Walgreen Co. in February by its parent company, private equity firm Oak Hill Capital Partners, in a $1.08 billion deal. Duane Reade was publicly traded before Oak Hill acquired the chain in July 2004.
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