KENIA SENTENCED TO 2 YEARS
NEW YORK — Former Leslie Fay Co. controller Donald F. Kenia has been sentenced to two years in prison, two years of supervised release and 500 hours of community service by U.S. District Judge Thomas I. Vanaskie in one of the industry’s most-publicized financial fraud cases.
In 1994, Kenia pleaded guilty in federal court in Scranton, Pa., to two counts of filing false information with the Securities and Exchange Commission in a fraud scheme perpetrated from 1990 to 1992. Kenia was dismissed from the company shortly after the accounting irregularities were made public in 1992, which forced the dress firm into bankruptcy in April 1993.
Prosecutors said Kenia was cooperating with them in their case against his former boss, Paul F. Polishan, the company’s chief financial officer at the time, in return for a more lenient sentence. Kenia and Polishan are the only two people charged with “cooking the books,” resulting in a $130 million fraud. He was sentenced Oct. 9.
Polishan was found guilty in July 2000 of 18 of the 21 charges against him, including the most substantial count of bank fraud, which carries a maximum sentence of 30 years in jail. He is scheduled for sentencing Nov. 16.