Remember Fran Flood? Well, earlier this month, the former ClearOne CEO was sentenced to four years in prison by U.S. District Judge Dee Benson of Salt Lake City after being convicted of nine felonies, including making false statements and securities fraud. Flood will start serving her four-year term on August 2nd.
You may remember that the case against Flood and ClearOne eventually, indirectly, led to the unraveling of MCSi, the Ohio-based ProAV mega-dealer who attempted to be the industry’s first “national” AV integration firm by buying up companies like Technical Industries of Atlanta, GA, Fairview AFX of Oklahoma City and Video Images of Milwaukee, WI. According to court records, the case cost ClearOne $7 million is legal fees.
If you’re interested in how all this is tied to MCSi and what happened, you can read the entire court case here: http://www.sec.gov/litigation/complaints/comp17934.htm