Houston -- Two former executives of Waste Management Inc. have settled charges of insider trading and fraud with the Securities and Exchange Commission (SEC), according to news sources. The charges allege that Rodney Proto, former WMI president, Earl DeFrates, former chief financial officer, and Bruce Snyder, former chief accounting officer, sold company stock just before an announcement that revenue would be $250 million lower than expected. Proto and DeFrates have agreed to pay $4.2 million in penalties. Snyder is contesting the charges.
WMI released a statement following the settlement that emphasized that the management officers involved in the dispute represent a different generation of leadership and values. "The settlement resolves litigation between the SEC and the individuals related to conduct that occurred during the first half of 1999," the company says. "This period of time predates Waste Management’s current executive team. Waste Management has made significant changes both to its leadership team and to its business over the past four years."