P.M. BRIEFING : Crazy Eddie Founder Charged
NEWARK, N.J. — Eddie Antar, the reclusive founder and former chairman of the Crazy Eddie electronics chain, was charged today in what authorities called a “massive financial fraud” to overstate the company’s income.
The Securities and Exchange Commission, in a civil complaint lodged here, accused Antar and six former top executives with a broad scheme to inflate inventory and cover up losses. Federal prosecutors also are conducting an investigation.
During the time of the allegations, Antar sold his holdings in the company for $60 million, the agency said. The SEC seeks injunctions, return of any illegal profits from stock sales and penalties.
The Edison, N.J.-based Crazy Eddie Inc., known for its manic commercials proclaiming, “Our prices are insane,” has foundered in recent years after once boasting 43 stores in New York, New Jersey and Pennsylvania.
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