Ex-HBO & Co. Exec Settles Fraud Charges

A former co-president of HBO & Co. agreed to pay $1.7 million to settle Securities and Exchange Commission charges that he fraudulently inflated HBO’s financial results before McKesson Corp. of San Francisco acquired it in 1999.

Neither admitting nor denying wrongdoing, Jay Gilbertson agreed to pay a $1-million fine and about $733,000 in allegedly ill-gotten gains, the SEC said. Gilbertson pleaded guilty to related criminal charges in June, an SEC trial attorney said.

Former McKesson Chairman Charles W. McCall pleaded not guilty in June to related criminal charges, the SEC attorney said.