SEC Sues 2 Former Cal Micro Execs

Two former executives of California Micro Devices Corp., a semiconductor component maker, were accused of illegal insider trading and financial reporting fraud, the SEC said. In a lawsuit filed in federal district court in San Jose, the Securities and Exchange Commission alleged that former Cal Micro Chairman and CEO Chan Desaigoudar and its former treasurer and chief financial officer, Steven Henke, artificially inflated the company’s publicly reported revenue during the fiscal year ended June 30, 1994. SEC official William Kimball said the accusations in the lawsuit were essentially the same as those brought against the two men last year as a result of a criminal investigation by the U.S. attorney’s office for Northern California. In that case, Desaigoudar and Henke were convicted in July on charges of having falsified Milpitas-based Cal Micro’s records in a 1994 accounting scandal at the company, which has since regrouped under a new management team. Attorneys for the men didn’t return calls seeking comment. The two will be sentenced in the criminal case next month and face up to 13 years in prison.