The Morning Report
San Diego news and info
you need to take on the day.

The company names Wireless Facilities and Kratos Defense & Security Solutions might have been familiar to you as you read through my story on SPAWAR bribery case, even if you are not an aficionado of local defense contractors.

You might have also read this story I wrote a couple years ago about another fraud case involving an employee from that company. Vencent A. Donlan, a former stock options administrator for Kratos (which was formally known as Wireless Facilities, Inc.), is serving a four-year prison sentence after admitting in October 2007 to a multi-million dollar stock fraud.

Donlan admitted to fraudulently issuing company stock options and then selling them at a $7.7 million profit. The company discovered the scheme while investigating whether it had backdated stock options, a practice that led to more than 200 investigations at U.S. companies after the Wall Street Journal broke what turned out to be a Pulitzer Prize-winning story on the practice in 2006.

DAVID WASHBURN

Leave a comment

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.