Behind The Scandal At Spectrum

Spectrum was in sorry shape when Peter T. Caserta was named chief executive in July, 1992. The small Dallas-based company had developed a patented technology that would allow wireless data transmission among computers. But in 10 years it had yet to make a profit. It was Caserta's job to change all that. A self-styled investment banker who claimed to have extensive contacts in the worlds of finance and high tech, Caserta vowed to win Spectrum Information Technologies Inc. the recognition--and riches--it deserved.

Two years later, Spectrum is indeed well-known, though not for its technology. Former Apple Computer Inc. Chairman and CEO John Sculley's announcement on Oct. 18 that he was taking over as Spectrum's boss, and his subsequent decision--just four months later--to resign have certainly gained the company notoriety. And Spectrum continues to make headlines. Sculley has sued Caserta, alleging that Caserta had concealed Spectrum's regulatory and accounting problems. In turn, Spectrum has sued Sculley for reneging on his employment contract.