US court tosses convictions against ex tech CFO

* Jury erred convicting ex-Network Associates CFO-ruling

* Prabhat Goyal ordered acquitted on all counts

* Had been accused of accounting scheme

SAN FRANCISCO, Dec 10 (BestGrowthStock) – A federal appeals court
exonerated the former chief financial officer of Network
Associates (MFE.N: ) who had been accused of misstating revenue
at the company now known as McAfee.

The 9th U.S. Circuit Court of Appeals ordered Prabhat Goyal
acquitted on Friday of fifteen counts related to accusations
that he supervised a revenue recognition scheme and lied to
auditors, according to the ruling.

Goyal was CFO at the security software company from
approximately 1997 through 2001. A Northern California jury
convicted him in 2007.

“This case has consumed an inordinate amount of taxpayer
resources, and has no doubt devastated the defendant’s personal
and professional life,” Chief Judge Alex Kozinski wrote in a
separate concurrence. “The defendant’s former employer also
paid a price, footing a multimillion dollar bill for the
defense.”

A spokesman for the U.S. Attorney in San Francisco said
that office was reviewing the decision and declined to comment
further. A McAfee representative was not immediately available
to comment.

“Prabhat Goyal never did a single thing wrong in this
matter,” Goyal’s attorney Seth Waxman said. “It must be an
enormous relief for him that the public now knows that.”

The government had alleged that the company, under Goyal’s
supervision, recognized revenue from certain software sales
earlier than it should have.

The government claimed that led the company to misreport
revenue in certain reporting periods between 1998 and 2000.

But the 9th Circuit ruled that prosecutors did not prove
that any technical accounting violations materially affected
the revenue reported by the company.

Two of the company’s former controllers previously pleaded
guilty in connection with the case.

The case in the 9th Circuit is United States v. Goyal,
08-10436.
(Reporting by Dan Levine)

US court tosses convictions against ex tech CFO