GOTTSCHALKS EXECUTIVES CLEARED ON TAX CHARGES
GOTTSCHALKS EXECUTIVES CLEARED ON TAX CHARGES FRESNO, Calif., July 30 /PRNewswire/ -- Gottschalks Inc.
(NYSE: GOT) announced today that the United States Attorney's Office for the Eastern District of California has informed the company's chairman, Joe Levy, and its president, Gerald Blum, that they are no longer targets of the previously announced federal criminal investigation into a tax deduction taken by the company in 1986.
In accordance with the terms of the plea agreement announced and reported on July 16, 1992, the company plead guilty in the United States District Court earlier today to a three-count indictment and agreed to pay fines totalling $1.5 million in order to settle all criminal charges against the company arising out of the government's investigation. The company's former Executive Vice President and Chief Financial Officer, Robert E. Lawson, and its former controller, Jack Farnesi, were indicted on June 4, 1992, on federal tax fraud and conspiracy charges arising out of the company's $3.7 million employee benefit plan deduction on the company's 1985 tax return. "We had every confidence that justice would prevail and will now rededicate our efforts to the continued growth of the company," commented Blum. "We have a strong management team in place and are optimistic about the company's prospects," added Levy. -0- 7/30/92 /CONTACT: James Clifford of Gottschalks, 209-434-8000/ (GOT) CO: Gottschalks Inc. ST: California IN: REA SU:
MM-RM -- SF008 -- 5387 07/30/92 19:00 EDT
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|Date:||Jul 30, 1992|
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