Cendant Statement Regarding U.S. Attorney and SEC Announcement
NEW YORK, June 14 /PRNewswire/ -- Cendant Corporation (NYSE: CD) released the following statement relating to announcements made by the U.S. Attorney and SEC today regarding the pleas by former officers of CUC in connection with the fraud disclosed on April 15, 1998: "The actions by the U.S. Attorney and the SEC today establish that this was a sinister fraud of more than 12 years' duration, which current Cendant management inherited from the former CUC. It validates what we have said all along; that this elaborate scheme, designed by senior management of the former CUC, hid the fraud from the public and from the former HFS prior to the CUC/HFS merger. Additionally, since the fraud was going on for at least 12 years, it supports Cendant's contention that it could not have occurred without the gross negligence, if not more, of CUC's auditors. The Company will do everything it can to cooperate with the SEC and U.S. Attorney's office with their continuing investigations to ensure that those remaining responsible parties, including former members of CUC's senior management, are brought to justice."
SOURCE Cendant Corporation