Former CSK Auto executive gets 2-year prison term

AP News
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Posted: Sep 21, 2011 6:07 PM
Former CSK Auto executive gets 2-year prison term

The former chief financial officer of CSK Auto Corp. has been sentenced to two years in prison for his role in a scheme to manipulate the company's earnings and double-bill customers.

Prosecutors say 55-year-old Don W. Watson of Gilbert also was sentenced him to three years of supervised release. His restitution hearing is pending.

Watson pleaded guilty in May to conspiracy to commit securities and mail fraud. Federal prosecutors say CSK inflated pretax earnings from 2002 through 2004 by $52 million by claiming sums of income that were actually vendor rebates that were never collected.

CSK was formerly headquartered in Phoenix and ran Kragen, Checker Auto and other auto parts and accessories stores. It was a publicly traded company until it was bought by O'Reilly Automotive Inc. in 2008.