2 accused of fraud

Published: Tuesday, Feb. 3 2009 8:54 a.m. MST

Jury selection is under way in a criminal case accusing two former Utah executives of inflating company revenue.

Federal prosecutors accuse Salt Lake City-based ClearOne Communications Inc. of shipping millions of dollars worth of audio- and video-conferencing equipment to distributors who didn't order the equipment or had to pay for it until they sold it.

The trial of Frances Flood, who was chief executive, and Susie Strohm, who was chief financial officer, is expected to last three weeks in U.S. District Court in Salt Lake City. Both women have denied wrongdoing. They face charges of security fraud, perjury, making false statements to an accountant and conspiracy.

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