A Cork businessman was planning a Christmas back in Ireland last night after a US jury failed to reach a verdict on his alleged involvement in a massive accounting scandal that wiped more than $1 billion (€764 million) off the share price of a high-tech firm.
Jerry A Shanahan (41), formerly of Rochester, New Hampshire, and the former chief operating officer for Enterasys Networks Inc, was accused of six counts relating to falsified accounting at the firm. His four co-accused were found guilty of involvement in the scandal when the jury returned its verdict in Concord, New Hampshire, yesterday.
The jury failed to agree on five of the counts on which Mr Shanahan was charged but cleared him of one count of falsifying corporate records. It spent more than 40 hours deliberating, with Judge Paul Barbadoro commenting that the length of time taken was "extraordinary".
Mr Shanahan's lawyer, Andrew Good, said that Mr Shanahan left the court so quickly that the two did not have a chance to talk but said that his client seemed very relieved. Mr Good will meet US government lawyers shortly to hear whether the government intends to retry Mr Shanahan or drop the charges.
The judge said he wanted the government to reach a decision as quickly as possible.
Mr Shanahan was indicted in Concord along with Robert Gagalis (49), Rye, New Hampshire; former Enterasys vice president Bruce Kay (53), Yarmouth, Maine; accountant Robert G Barber (53), Durham, New Hampshire, and David (Hor Chong) Boey (51), of Atlanta, Georgia. All the others were convicted on some of the 16 counts put to the jury.
Linda Tomlinson, a spokeswoman for the US attorney's office in Concord, said lawyers for the other accused were now discussing bail terms before sentencing or possible appeals.
The charges related to events in 2001 when Enterasys was created from the Cabletron high-tech cable company.
All were charged with routing money to Enterasys customers to buy Enterasys products in a fraudulent attempt to boost the profits of Enterasys,which employs 1,700 people worldwide, including about 80 at Shannon Industrial Estate in Co Clare.
Mr Shanahan was appointed chief operating officer of the Andover, Massachusetts, corporation in 2001 but resigned with three executives the following year, after the Securities and Exchange Commission announced an investigation. He has a degree in electrical engineering from University College Cork and a masters degree in business from the University of Limerick.
