Debra Speyer In The News - CNBC Market Dispatch. February 27, 2003.
Tip of the Iceberg for Kmart
Two former Kmart executives were indicted yesterday on three charges of
securities fraud. This will open the floodgates for testimony from other
employees about what was really going on at the bankrupt retailer, according
to securities attorney Debra Speyer.
"This is going to be the tip of the iceberg," Speyer told CNBC's Wake Up
Call. "I think we will end up seeing lower level employees coming up and
putting pressure on and showing that there was more going on that than meets
the eye." Speyer said in past cases of corporate fraud, low-level employees
have provided information to flip higher level employees, but it is too soon
to say if former-CEO Chuck Conway could face charges. She also said the
damage caused by corporate fraud can't be overstated.
"This has been a tragedy to the American public and we have seen (it nearly)
every day," Speyer said. She said conformity in accounting and corporate
behavior needs to be enforced or there will be more cases of individuals
simply "booking revenue ahead of what needed to be booked."