Atlanta
Graham-Field Health Products' president and CEO Irwin Selinger, convicted of conspiracy and securities fraud last summer, has been sentenced to 18 months in prison and three years probation by a federal court judge in Central Islip, N.Y.
After the sentencing by U.S. District Judge Denis Hurley, Selinger stated that he “strongly contests his conviction and intends to seek an immediate stay of his sentence pending his appeal before the U.S. Court of Appeals,” according to a company statement released at the time.
The original indictment charged Selinger with fraudulently propping up company profits during a pending 1997 merger deal with Delaware-based Fuqua Enterprises. The transaction depended on Graham-Field's stock staying above a certain price, the indictment said.
The company did not comment on whether Selinger would stay on, but Lawrence de la Haba, vice president of marketing, said the company “has been preparing for all possible scenarios for some time.
“Graham-Field has already implemented a new strategic plan that involves the creation of three business units reflecting the three distinct markets in which the company competes,” de la Haba said. “Each of these units is being managed by a senior executive of the company. This plan will increase our focus on the customers we service in the home care, long-term care and primary-care markets.”
“Our main investors have approved the plan and have committed to provide the necessary financing. The board of directors is excited about the company's prospects.”
, reintroducing its Everest & Jennings, LaBac, Simmons Healthcare, John Bunn, Grafco, Labtron and Lumex product lines.
Since the late 1990s, Graham-Field has filed for and emerged from bankruptcy, endured an internal audit revealing accounting irregularities, explored a possible sale, seen frequent top-management turnover and moved its base operations from Long Island to Atlanta. In May 2003, the company announced its reorganization and began to push back into the home care market.
