The Securities and Exchange Commission announced that Jeffrey Conway, Matthew Marini and Jeffrey Underwood were sentenced in connection with their respective roles in Rent-Way's $60 million financial reporting fraud. On July 22, 2003, Conway and Underwood each settled SEC charges against them and Marini partially settled charges against him. Each of the defendants also pleaded guilty to criminal charges against them on the same day.
Conway, Rent-Way's former president and CFO, pleaded guilty to one count of conspiring to falsify Rent-Way's books and records. On November 25, 2003, Conway was sentenced to 13 months in prison and 2 years of supervised release, and was ordered to pay a $20,000 fine.
Marini, Rent-Way's former controller and CAO, pleaded guilty to one count of securities fraud. On November 26, 2003, Marini, who cooperated in the investigations by the Department of Justice and the Commission, was sentenced to 3 months in prison, 3 months of home detention, and 2 years of supervised release.
Underwood, Rent-Way's former vice president in charge of operations, pleaded guilty to one count of falsifying Rent-Way's books and records. On December 19, 2003, Underwood, who also cooperated in the investigations by the Department of Justice and the Commission, was sentenced to 2 years probation and ordered to pay a $7,000 fine.
The Commission thanks the United States Attorney for the Western District of Pennsylvania and the Federal Bureau of Investigation for their assistance and cooperation in this matter.
For additional information, see Litigation Release No. 18241 (July 22, 2003) and Accounting and Auditing Enforcement Release No. 1816 (July 22, 2003).