Former Posterscope leaders plead guilty to $20m fraud

Former leaders at Posterscope USA, Aegis Media's outdoor specialist, have admitted to falsifying the company's books to the tune of $19.75 million in court this week, and could face up to 40 years in prison.

Former Posterscope leaders plead guilty to $20m fraud
Former Posterscope leaders plead guilty to $20m fraud

Todd Hansen, president of Posterscope between 2004 and 2009 pleaded guilty to the charges on Monday (11 June) in federal court in New York. James Buckley, Posterscope’s former finance director, pleaded guilty earlier this month.

The US attorney Preet Bharara and the FBI jointly announced that the two men were charged with "accounting sleight-of-hand for the sole purpose of self-enrichment" and said they "will be punished accordingly".  

The men will be sentenced in October and could face up to 40 years in prison.

The prosecutors said the pair enacted what they called a "classic accounting fraud scheme" to ensure they commercial targets resulting in the pair being paid total salaries and bonuses of $1.1 million and $650,000 respectively.

During the same period, Bharara said Hansen also "allegedly misused tens of thousands of dollars of company funds to pay for expenses and fees that benefited him, his family and friends and that were unrelated to the company’s legitimate business."

Hansen left Posterscope at the end of 2009 amid a management restructure, replaced by Connie Garrido. He went on to become president of the San Francisco division of Clear Channel Outdoor.

Aegis restated full revenue figures to investors following an internal review process in 2010. The group declined to comment until the legal investigation, which it orchestrated two years ago, comes to an end in October.

Follow Arif Durrani on Twitter: @DurraniMix

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

Lost in translation: when brand taglines don't travel

Lost in translation: when brand taglines don't travel

These might be some of the most memorable brand taglines in English but when they cross oceans, they mean something entirely different. We searched the depths of the internet to find the best, or worst.

Share
Traditional TV viewers predicted to drop as mobile fuels rise in online video

Traditional TV viewers predicted to drop as mobile fuels rise in online video

Linear TV viewing figures are set to drop worldwide for the first time next year, with online video consumption set to rise by 23.3 per cent in 2015, according to a report by ZenithOptimedia.

Share
The 7 deadly sins of brand management - and how to avoid them

The 7 deadly sins of brand management - and how to avoid them

Some of the most valuable assets a firm has are the brands it has developed. Brands create identification, differentiation and value for customers and shareholders alike. By influencing customer choice, creating a loyal and passionate following as well as commanding a premium for their products and services, strong brands can be key to great business performance.

Share

Get news by email