American Bank Note Holographics ("ABNH") has been a pioneer and world leader in holography, with a focus on security applications for 20 years. ABNH is in many ways a new company today. With new management that started in 1999, ABNH has been revitalized with a host of innovations developed to meet the needs of its diverse marketplace. The new ABNH is stronger than ever, with new leadership building on its heritage and international reputation for innovation and faithful service to its customers.
The need for holographic security applications has never been greater. Governments, corporations and citizens worldwide are faced with an increased threat of counterfeiting as a result of new technologies in the hands of counterfeiters. Counterfeiting has become a $500+ billion annual problem and is continuing to increase.
On August 8, 2003, a jury found that Morris Weissman, former chairman and CEO of American Banknote, had inflated his company's earnings in 1996 and 1997. Based on the false numbers, the 1998 public offering of the company's subsidiary, American Banknote Holographics, was a success, netting the company $115 million. When the accounting fraud was uncovered in early 1999, the spinoff's shares dropped from about $16 a share to $1.80 a share. The stock was delisted in August 1999. As a result of the fraud, investors were bilked of more than $100 million, prosecutors say. While that sum pales in comparison with the money lost through the accounting frauds at Enron and WorldCom, the conviction is significant.
Named as defendants in the Complaint are Morris Weissman, the former chairman of the board and chief executive officer of ABNH and the former chairman, chief executive officer, and director of ABN, Joshua Cantor, the former executive vice president and general manager of ABNH and, later, its president and a director, John Gorman, the former executive vice president and chief financial officer of ABN, and Patrick Gentile, currently a vice president and the chief accounting officer of ABN and, formerly, ABN's corporate controller.