Two former executives with Gateway Inc., the nation's third-largest PC vendor, are guilty of manipulating earnings and revenues to meet Wall Street expectations, according to a verdict delivered Wednesday by a federal jury in California.
The company's former chief financial officer, John J. Todd, and former controller, Robert D. Manza, also concealed important information about Gateway's business success from investors, according to a statement from the U.S. Securities and Exchange Commission (SEC).
The U.S. District Court for the Southern District of California will announce sanctions against the two men at a later date, the SEC said. Gateway did not respond to requests for comment.
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