LOS ANGELES – A federal judge on Monday ordered the former CEO of Gemstar-TV Guide International Inc. to pay $22.3 million in fines and penalties in an investment fraud case.
The judgment against Henry Yuen is less than the $31.4 million sought by the Securities and Exchange Commission.
In March, U.S. District Judge Mariana R. Pfaelzer found Yuen liable for securities fraud in an SEC lawsuit that claimed he inflated the company's revenue by $248 million to boost its stock.
Pfaelzer also found Yuen liable for misrepresenting facts to Gemstar's auditors and falsifying its books.
Yuen's attorney, Stanley Arkin, said the verdict and judgment will be appealed.
"We've always taken the position that Henry Yuen never did anything to deliberately defraud investors and everything he did had been approved by professionals or fellow board members," Arkin said.
The company fired Yuen in April 2003.
Pfaelzer ordered Yuen to repay compensation of $10.6 million, which represents $3 million in bonuses he received during the period in question, plus $7.6 million in profit from trading Gemstar stock.
She also ordered Yuen to pay a $10.6 million civil penalty and $1.1 million in interest.
Pfaelzer did not rule on a $29.5 million severance package that was previously frozen by a federal court. The SEC wants Yuen to forfeit the entire amount.