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McKesson Ex-Chief McCall Loses Supreme Court Fraud Appeal

Former McKesson Corp. Chairman Charles McCall lost a U.S. Supreme Court bid to overturn his conviction and 10-year prison sentence for a scheme to inflate company revenue.

The justices, without comment, refused to consider McCall’s appeal. The former executive argued that improper jury instructions at his 2009 trial let jurors find him guilty without proving that he intended to break the law.

McCall was convicted on five counts of securities fraud, making false statements in Securities and Exchange Commission filings and circumventing accounting rules. Prosecutors charged that McCall and others backdated contracts and took other steps to manipulate sales figures and meet quarterly revenue targets.

When McKesson disclosed in April 1999 that sales had been prematurely booked, leading to a restatement, the shares lost 47 percent of their value. McKesson, based in San Francisco, is the largest U.S. drug distributor.

McCall was sentenced in March 2010 to 10 years in prison and fined $1 million.

The case is McCall v. U.S., 11-882.

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