Sirena Ex-CEO Pleads Guilty to Federal Charge

Sirena Apparel Group Inc.’s former chief executive pleaded guilty to charges he falsified the swimwear maker’s books to meet revenue forecasts, federal prosecutors said. Maurice B. Newman, 67, entered his plea before U.S. District Judge Dickran Tevrizian in Los Angeles. Tevrizian set a June 25 sentencing date, when Newman could face as much as 25 years in prison and a fine of $8.8 million. Sirena executives repeatedly moved back the clock on the company’s computer system, keeping the computer from closing 1999’s fiscal third quarter until revenue had met analysts’ projections, authorities said. The move inflated quarterly results by about $4.4 million, the government charged. Another Sirena executive, former Chief Financial Officer Richard Gerhart, has indicated he will change his plea to guilty on Monday, said Thom Mrozek, spokesman for the U.S. attorney’s office for Central California. Federal prosecutors announced the indictments of Gerhart and Newman in September. Vernon, Calif.-based Sirena makes swimwear under brand names such as Liz Claiborne. The company filed for Chapter 11 bankruptcy protection in June 1999.