The Bonuses Nobody Approved

The chief executive and chief financial officer of a large international company were accused of looting it. Prosecutors alleged they used two company loan programs to pay for personal spending, including millions for fine art and a multimillion-dollar residence, and then took huge 'bonuses', some presented as loan forgiveness, of about $77 million and $44.5 million respectively, without authorization. They were charged with twelve counts of first-degree grand larceny, eight counts of falsifying business records, conspiracy and securities fraud. At a nearly six-month trial they testified that the board's compensation committee had approved the bonuses through its late chairman and another director, though no documents supported this and every available committee member denied approving them.