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any effort or have any impact on any decision relating to the prosecution or non prosecution or any employee direction, said Robert M. attorney when it came to the Enterasys investigation.
Spence was charged along with Gagalis, and then pleaded guilty and became a key state witness.
At no time did Tom Colantuono make Omega Seamaster Planet Ocean 600m Skyfall
Patel and Jaeger were opposed to changing to the sales out method and fought the change during the August meeting, as did Benson when the matter was brought to the board level in September 2001, according to the filing. Benson, a member of Enterasys TM board of directors, served on its audit committee.
Jaeger, Patel and Kirkpatrick were never charged criminally, but the Securities and Exchange Commission has filed civil securities charges charging them, along with Gagalis and six other former Cabletron and Enterasys executives, with various three corner deals. Benson has never been charged.
Kinsella would not say why or when Colantuono recused himself, only that he did so, as soon as there was a question of appearance of impropriety, he told NHBR.
The three corner deals were planned and endorsed by Cabletron and Enterasys management, particularly Jaegar and also Benson, Patel and Kirkpatrick, writes Gagalis TM current attorney, Stephen M. Rasche, in his 51 page brief. These three corner deals were the basis of the criminal charges against Gagalis.
When it came time for finding fault, it was Gagalis who was targeted as the highest ranking member on trial after former Enterasys CEO Henry Fiallo pleaded guilty and testified against Gagalis. attorney by President Bush, had a long standing political and personal relationship with Benson, who was at that time running for governor of New Hampshire.
Gagalis was convicted of conspiring to increase sales through various accounting gimmicks, including secret side agreements and three corner deals through which Enterasys invested in shaky companies in exchange for those companies buying its equipment through a distributor.
Colantuono recused himself due to Colantuono TMs relationship with Benson, Gagalis charges.
Gagalis said he favored shifting the accounting method, so that revenue would not be improperly recognized, and three corner deals would be more transparent.
Convicted Enterasys exec implicates Benson
Still, contends Gagalis, because both investigations involved three point deals dating back to Cabletron they were inevitability intertwined. Indeed, Harding was on Gagalis TM team TMs discovery list.
A federal jury convicted Gagalis and four former Enterasys executives in December 2006. He was sentenced in the summer of 2007 to 11 1/2 years in federal prison for conspiring to inflate revenue when Cabletron spun off Enterasys.
chief financial officer of Enterasys Networks, filed a motion July 7 to vacate his securities fraud conviction with the claim that the real culprits including former Gov. Attorney Tom Colantuono and Gagalis TM own attorney. District Court in Concord that Colantuono had ties to Benson and didn TMt recuse himself before Gagalis was targeted. Gagalis says the executive, Daniel Harding, was targeted for the same type of fraud that resulted in Gagalis TM conviction but was never charged civilly or criminally.
In the July 7 filing, Gagalis said that these questionable practices dated back to Cabletron and the firm TMs top executives from those days Benson, co founder and former CEO, Piyush Patel, Benson TMs successor as CEO at Cabletron, David Kirkpatrick, Cabletron TMs chief financial officer, and Eric Jaeger, executive vice president, all of whom still held power in Enterasys.
Colantuono TMs relationship with Benson dates back to his years as an executive council member from 1999 to 2001 in which he held responsibility for approving state contracts, including many which were awarded to Cabletron during his tenure, charges Gagalis. Attorney William Morse interviewed Benson on May 7, 2003, when he was accompanied by attorneys from the Boston law firm of Ropes and Gray, but even while Morse was managing the investigation it remained under the direction and control of Colantuono, Gagalis charges.
Benson, according to Gagalis TM filing, disavowed any knowledge of wrongdoing and instead deflected knowledge down onto his then subordinates, including Gagalis. Attorney TMs Office still operating under Colantuono forwarded a targeting letter to Gagalis, the basis of the prosecution having now been framed.
The reason was because the defense team had its own conflicts, contends Gagalis, since Goodwin Procter also was representing Harding, who was the vice president of business development at Cabletron. (He also was once an associate at Ropes and Gary, a firm that represented Benson, Cabletron and Enterasys.)
Gagalis, over Benson TMs objections, was able to convince the board to change, he says.
Calls to Benson and James Rehnquist, Gagalis TM former attorney, were not returned.
Harding had since moved on to Cabletron TMs other spinoff, Riverstone Networks, where he was a target of an investigation into similar three point deals. Riverstone moved out to California, and the investigation was being handled separately out of the Denver office. Enterasys moved to Andover, Mass., in 2003. The company was bought by private equity firms in 2005.
Robert Gagalis, the former Omega Seamaster Golf Edition
Benson, according to the filing, was extremely critical of KPMG, Enterasys TM accounting firm, misleading Gagalis that KPMG was overly intrusive and cumbersome in its approach, when in fact Benson and others were anxious to fire KPMG to be able to more freely recognize revenue from the questionable deals.
While Omega Speedmaster Leather Benson wasn TMt an employee of Cabletron or Enterasys at the time, Gagalis said he in particular maintained close contact through an established network of individuals at Enterasys, most of whom were long term Cabletron employees, including Gayle Spence.
The sentencing was in accordance with a deal in which Gagalis waived his rights of appeal to avoid the possibility of application of more severe sentencing. Gagalis now contends he waived his rights on improper advice of conflicted counsel, and therefore the court should consider his motion to vacate the both the judgment and Omega Watch Models
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