Former Cendant Corp. chairman Walter Forbes and former vice chairman E. Kirk Shelton were indicted on criminal and civil fraud charges they deceived investors by inflating Cendant’s earnings, according to published reports.

Referring to the case as one of the largest securities frauds they had seen, prosecutors allege that the two men ran a fraud scheme for over ten years, mostly at CUC International, a Cendant predecessor, which inflated earnings before charges by $500 million.

Indicted by a federal grand jury in Newark yesterday, Forbes and Shelton were charged with conspiracy and wire fraud. If found guilty, they could serve up to five years in prison and be levied with $250,000 fine each on each of the two counts.

The Securities and Exchange Commission filed a civil fraud suit in Newark federal court, which could mean possible fines for the former Cendant executives.

In an unrelated development, Cendant itself announced that its subsidiary, RCI Europe, completed its acquisition of RCI Southern Africa Ltd. The transaction is expected to be immediately accretive to Cendant’s cash flow and earnings per share.

Former Cendant Corp. chairman Walter Forbes and former vice chairman E. Kirk Shelton were indicted on criminal and civil fraud charges they deceived investors by inflating Cendant’s earnings, according to published reports.

Referring to the case as one of the largest securities frauds they had seen, prosecutors allege that the two men ran a fraud scheme for over ten years, mostly at CUC International, a Cendant predecessor, which inflated earnings before charges by $500 million.

Indicted by a federal grand jury in Newark yesterday, Forbes and Shelton were charged with conspiracy and wire fraud. If found guilty, they could serve up to five years in prison and be levied with $250,000 fine each on each of the two counts.

The Securities and Exchange Commission filed a civil fraud suit in Newark federal court, which could mean possible fines for the former Cendant executives.

In an unrelated development, Cendant itself announced that its subsidiary, RCI Europe, completed its acquisition of RCI Southern Africa Ltd. The transaction is expected to be immediately accretive to Cendant’s cash flow and earnings per share.