S.E.C. v. KOENIG

No. 08-1373.

557 F.3d 736 (2009)

SECURITIES and EXCHANGE COMMISSION, Plaintiff-Appellee, v. James E. KOENIG, Defendant-Appellant.

United States Court of Appeals, Seventh Circuit.

Decided February 26, 2009.


Attorney(s) appearing for the Case

John W. Avery (argued), Jacob H. Stillman, Securities and Exchange Commission, Office of the General Counsel, Washington, DC, Mary Keefe, Securities and Exchange Commission, Chicago, IL, for Plaintiff-Appellee.

Sarah R. Wolff, Reed Smith LLP, Chicago, IL, Donna M. Doblick (argued), Reed Smith LLP, Pittsburgh, PA, for Defendant-Appellant.

Before EASTERBROOK, Chief Judge, and MANION and WOOD, Circuit Judges.


EASTERBROOK, Chief Judge.

Waste Management, Inc., grew at an average annual rate of 26% from 1979 through 1991. When growth fell off, James Koenig, its Chief Financial Officer, decided to improve appearances. He devised several accounting strategies that a jury found to be fraudulent. The district judge imposed a civil penalty of about $2.1 million and ordered Koenig to disgorge the bonuses he received in 1992, 1994, and 1995 ($831,500, plus more than $1.2 million...

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