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A former Media Vision Technology Inc. executive was found guilty Thursday on five counts relating to a widespread fraud that brought down the once high-flying company. Steven Allan, who served as chief financial officer, faces millions in fines and decades of prison time after a federal jury in Oakland found that he lied to financial analysts and auditors about numerous schemes at the company, which used false inventories, misdated transactions and nonexistent products to inflate its financial picture. Allan will be sentenced Dec. 6. It was Allan’s bad luck to go before a jury steeped in news of corporate scandal; a previous jury hung on the same charges. Against such an intimidating backdrop, defense lawyer Arthur Lemann III moved to delay the trial. U.S. District Judge D. Lowell Jensen rejected the motion the day before jury selection began. Prospective jurors were quizzed on whether they could be fair to corporate executives facing securities fraud charges. Lemann could not be reached for comment after Thursday’s verdict. Prosecutors relied on the testimony of several former employees of Media Vision, including former Chief Executive Officer Paul Jain. Five witnesses testified under terms of their plea deals with the government. None has so far been sentenced. Jurors dismissed two counts of mail fraud against Allan. They hung on an insider trading charge. Two counts of making false statements to auditors could each carry 10-year sentences, while the three wire fraud charges carry penalties of five years. During closing arguments, prosecutors played tapes of the analyst calls for which Allan was convicted. When pressed about recent reports of trouble at the company, Allan reassured his inquirers that the company was on solid ground. Assistant U.S. Attorneys John Hemann and Miles Ehrlich prosecuted the case. “This verdict comes at an important time in our efforts to hold corporate executives accountable for misleading investors about the financial performance of their companies,” U.S. Attorney Kevin Ryan said in a prepared statement. “We will continue to pursue cases, like this one, in which there is clear evidence that corporate officers have cooked the books for their own gain and intentionally deceived the public and the Securities and Exchange Commission.”

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