Government, Cendant Corp. could collect billions under ex-chairman Forbes’ new divorce decree

Govt may get billions under Forbes’ divorce decree

BRIDGEPORT, Conn. — The federal government might get to collect billions of dollars in court-ordered restitution under a new divorce decree between former Cendant Corp. chairman Walter Forbes and his wife of 27 years.

A judge’s ruling last Thursday orders Forbes’ ex-wife, Caren, to transfer ownership of homes in Connecticut and Rhode Island back to Forbes, plus half their jewelry and art collections.

That lets the federal government and Cendant attach liens to recover almost $3.3 billion to which the court says they are entitled.

Forbes was convicted of securities fraud and is serving nearly 12 1/2 years in federal prison. Prosecutors had worried he might dodge the restitution by transferring assets to his wife in the divorce.

Forbes’ securities fraud is considered the largest accounting fraud of the 1990s.

Information from: Connecticut Post, www.connpost.com