United States v. Richard Berger
Opinion
Opinion
FACTS AND PROCEDURAL BACKGROUND
Craig Consumer Electronics, Inc. (Craig) was a publicly traded consumer electronics business that primarily distrib- uted its products to retail electronics stores. During the rele- vant time frame, Berger was Craig’s President, Chief Executive Officer, and Chairman of the Board. Two other corporate officers, Donna Richardson and Bonnie Metz,1 par- ticipated in the fraudulent scheme and were convicted along with Berger for their involvement.
In August 1994, Craig entered into a $50 million revolving 1 Richardson, Craig’s Chief Financial Officer until May 31, 1997, pled guilty to three counts of the indictment prior to trial. Metz was at various times a Vice President in Craig’s Hong Kong and Cerritos, California locations. 15622 UNITED STATES v. BERGER credit agreement with a consortium of banks. Under the agreement, the amount Craig was permitted to borrow was based on the value of its current inventory and accounts receivable. To determine the fluctuating amount Craig was eligible to borrow, Berger and his co-defendants were required to provide the lending banks with a daily certifica- tion concerning those assets.