Troubled publisher Take-Two has a history that won't let the company out from under the limelight. The company's former chief accounting officer Patti Tay and former general counsel Kenneth Selterman pleaded guilty recently in a New York state court to falsifying business records, Bloomberg reported. The charges stemmed from an SEC probe that dealt primarily with stock option grants dating back to January 1997.
Specifically, Tay pleaded guilty to creating fake entries on stock option grant spreadsheets in 2001 and 2002, while Selterman gave incorrect information on the stock options to officials in 2002.
The two will not be the first Take-Two execs convicted, as former CEO Ryan Brant pleaded guilty to a similar falsification charge in February. Take-Two's top shareholders cleaned house this year by replacing several management executives, with chairman Strauss Zelnick and CEO Ben Feder taking the top spots.
Brant, Tay, and Selterman will receive sentencing August 1, August 2, and August 8, respectively. Selterman's expected sentence includes three years probation, 200 hours of community service and a $50,000 fine, according to Bloomberg. Tay's should include probation and a call for relinquishing $300,000 to Take-Two, while Brant's sentence gives him only probation as part of a cooperation agreement with prosecutors.
Tay and Selterman pleaded guilty May 31 and June 6, respectively.