STOCK QUOTES     More market data...

Cutter & Buck ex-CFO to spend 3 months in jail

By Monica Soto Ouchi
Seattle Times retail reporter

Stephen Lowber was chief financial officer.

E-mail this article Print this article Search archive Most read articles Most e-mailed articles

One quarter.

That's how long former Cutter & Buck Chief Financial Officer Stephen Lowber will spend in jail for helping the sportswear company conceal $5.7 million in fraudulent sales for the 2000 fiscal year.

In an emotional sentencing yesterday, U.S. District Court Judge Thomas Zilly handed Lowber, 53, a split sentence of three months in jail and three months in home detention, plus 200 hours of community service and a one-year supervised release.

Lowber begins his sentence in the next four to six weeks.

Zilly said the case is extraordinary in that Lowber led an exemplary life on one hand and caused investors substantial loss on the other.

"Most people are going to read about this tomorrow and say, 'Three months? What are we talking about?' " Zilly said. "And yet, they won't know, unfortunately, many of the good things that balance the ledger."

In August 2003, Lowber pleaded guilty to being an accessory after-the-fact to wire fraud for his role in the company's accounting misdeeds. Under the deal with federal prosecutors, Lowber agreed to cooperate with the government's ongoing investigation.

Lowber also paid a $50,000 fine to the Securities and Exchange Commission and was barred from serving as an officer or director of a publicly traded company.

Former Cutter & Buck controller Athena Diaz pleaded guilty Tuesday to a federal felony for her role in the cover-up and agreed to cooperate with investigators. She will be sentenced in November.

Both pleas suggest the government could bring charges against others. "The investigation is ongoing," Assistant U.S. Attorney Jeffrey Coopersmith said.
 
Lowber, flanked by family and friends, told Zilly that he profoundly regretted his actions and the people he hurt.

"I've had two years to agonize over my personal shortcomings and ... " Lowber said, putting his head down and clearing his throat.

"My family has suffered with me — the people here," he said, choking back tears.

Lowber said he lost his career, his professional credentials and his credibility as a Christian leader. He asked the judge for leniency.

Nearly 50 people — including previous business associates, family members, current and former employers and his pastors — filed letters on behalf of Lowber.

In one letter, Lowber's wife of 28 years, Sue, said her husband made a bad business decision in the "heat of the battle."

"But Judge Zilly, please consider the adage, 'the moment doesn't make the man,' " she wrote.

After the sentencing, Joseph LeClair said he was disappointed that his son-in-law — a veteran who was seriously wounded fighting in Vietnam — would be sentenced to jail when he's lived an otherwise contributive life.

"This is a real good man," said LeClair, 75, of Sammamish. "We're going to pray for him."

New chairman, CEO

Cutter & Buck has named board member Doug Southern as chairman and Bill Swint as interim chief executive. The two replace Fran Conley, who steps down as chairman and CEO on Sept. 15.

Monica Soto Ouchi: 206-515-5632 or msoto@seattletimes.com