Feds Want Former McKesson HBOC Chairman Taken Into Custody

Feds Want Former McKesson HBOC Chairman Taken Into Custody - 12-18-2009

Home

Index of Filings

News and Press Releases

Filings

Decisions

Settlements

Litigation Activity Indices

Top Ten List

Annual/Quarterly Updates

Clearinghouse Research

Articles & Papers

Search

Related Sites

About Us

Local Rules

Sponsors

Register

_______________
Copyright © 2001
Stanford Law School

2009 News and Press Releases

SEARCH

News	News 2009
HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

HEADLINE NEWS:

Feds Want Former McKesson HBOC Chairman Taken Into Custody
Dan Levine

The Recorder. December 18, 2009
_________________________________________________________________________

EXCERPT: Federal prosecutors are attempting to immediately imprison former McKesson HBOC Chairman Charles McCall because he did not inform court personnel about a 2006 arrest for soliciting a prostitute, according to a government court filing. A jury convicted McCall last month on several counts of securities fraud, but he has remained out on bail while litigating post-trial motions. Sentencing on the securities fraud counts charges isn't due until next year. However, Assistant U.S. Attorney David Anderson is asking that McCall's $1 million unsecured bond be immediately revoked. During McCall's first trial, in which the jury hung on securities fraud, McCall was arrested for soliciting prostitution, and the charges were dismissed, Anderson wrote. However, McCall did not inform the court's pretrial services division of the arrest. When confronted last week, "the defendant stated that he did not agree to pay for sex, was never told that he was under arrest, and did not understand that he had been charged with a crime," Anderson wrote. The government routinely asks that drug dealers and sex offenders be remanded before and after conviction, but such requests are rare in white-collar cases. And while pretrial services has accepted McCall's explanation, prosecutors cited the remand of Ponzi schemer Bernard Madoff as grounds to lock McCall up. "The facts of this case parallel the facts that the court found persuasive in Madoff," Anderson wrote. "In this case, the defendant is 65 years old and faces a statutory maximum sentence of 100 years imprisonment, giving him an incentive to flee." McCall's handling of the prostitution arrest is even more reason to lock him up now. "Although the defendant may claim that the arrest itself is insignificant," Anderson wrote, "there is no downplaying the significance of his failure to report the arrest in 2006 or the story he told Pretrial Services on Dec. 8, 2009, when he was confronted with the arrest and his previous failure to report." McCall's lawyers, Theodore Wells Jr. of Paul, Weiss, Rifkind, Wharton & Garrison and Michael Shepard of Hogan & Hartson, didn't immediately respond to requests for comment Thursday.

Back to News page | Back to Archived News 2009 page | Back to Top

�