SEC Charges Former Kmart Execs With Fraud

Washington, D.C., Federal securities regulators charged two former chief officers of Kmart with financial fraud today, claiming they misled investors about the company’s financial condition in the months leading up to the bankruptcy. Former CEO Charles Conaway and former CFO John McDonald are both responsible for false and misleading disclosure about Kmart’s liquidity in the company’s financial statement for the third quarter and nine months ended Oct. 31, 2001, the SEC said.