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44.In April 2004, Demag Plastics Group (“Demag”) agreed to a $1 million rebate in lieu of a discount on the purchase price of machinery it was selling to C&A.  Knowing that C&A was receiving the rebate in place of a discount, Stockman instructed Cosgrove (through Barnaba) to ensure that the rebate was falsely documented so that it could be treated as an increase to income.  At Cosgrove’s direction, C&A personnel obtained documentation from Demag falsely attributing the rebate to past purchases by C&A of spare parts and other services.  C&A improperly recognized the $1 million in income in the second and third quarters of 2004.

45.When C&A negotiated a $1 million discount on machinery purchased from Cincinnati Milacron, Stockman again directed Barnaba to work with Cosgrove to prepare paperwork that could be used to provide false justification for immediate recognition in income.  The resulting documentation falsely ascribed the rebate to the purchase of “implementation training services, technical support and continuous improvements.”  The $1 million was recognized in the third quarter of 2004.  Gougherty, who had become Controller of the Global Plastics Division, directed the improper recognition of at least $600,000 of this rebate.      

46.C&A's fraudulent accounting for capital equipment purchases materially increased C&A's reported income for the second and third quarters of 2004.  During this period, C&A improperly recognized at least $7.2 million in pre-tax operating income based on capital expenditure rebates.     

47.C&A continued to use rebates on capital equipment to fraudulently inflate income in the fourth quarter of 2004.  Pursuant to directions from Gougherty, the Global Plastics Division played a prominent role in the rebate scheme during this period, using

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