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FEDS INDICT FORMER MCKESSON CFO A federal grand jury on Tuesday indicted former McKesson Chief Financial Officer Richard Hawkins on charges of conspiracy and securities fraud related to the implosion of McKesson’s 1999 acquisition of HBO & Co. Hawkins, who is 53 and lives in Atherton, is the first McKesson official charged in connection with the controversy. He is scheduled to appear in U.S. district court today. Previous indictments have centered on officials formerly with HBOC. Along with the indictment, the Securities and Exchange Commission filed civil charges related to Hawkins’ alleged role in the financial scandal. Several HBOC officers have already been indicted; several pleaded guilty to conspiracy and fraud. McKesson is also facing one of the largest private securities fraud suits ever. Hawkins’ attorney, Walter Brown Jr. of Orrick, Herrington & Sutcliffe, said he was “honestly befuddled” why the government was prosecuting Hawkins, who he said actually helped uncover the fraud committed by HBOC. The U.S. attorney’s office, however, alleges that Hawkins and other McKesson officials worked to artificially inflate McKesson stock “by fraudulently recognizing revenue on a $20 million transaction between McKesson and Data General Corp.,” according to a U.S. attorney press release. The transaction, which the government alleges was fraudulent, was reported in the first quarter after the HBOC deal. “The � transaction was conceived, negotiated and executed in its entirety after the close of the quarter,” according to the U.S. attorney’s press release. Brown said he looked forward to proving his client innocent. — Jeff Chorney

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