Unify Corporation (UNFY)

[martinwitton]

Former Unify Corp. CEO faces sentencing in Sacramento, Calif., stock fraud

Friday , August 13, 2004 15:13 ET

Aug 13, 2004 (The Sacramento Bee - Knight Ridder/Tribune Business News via COMTEX) -- The former president and CEO of Sacramento-based Unify Corp. is scheduled to appear today before a San Francisco federal court for sentencing on nine counts of securities fraud and one count of conspiracy.

Reza Mikailli was found guilty in November of secretly funneling hundreds of thousands of shares of stock to his ex-wife as part of a divorce settlement without making required disclosures to the Securities and Exchange Commission or telling Unify officials. The federal jury also found that he illegally sold his remaining Unify shares just before the company announced an audit that restated its revenues in 2000 from $39.5 million to $21.1 million.

Mikailli faces up to 10 years in prison and a fine of up to $1 million for each count of securities fraud. For conspiracy, he faces a maximum of five years in prison, a $250,000 fine and restitution, prosecutors said.

By Jon Ortiz
To see more of The Sacramento Bee, or to subscribe to the newspaper, go to
http://www.sacbee.com.