No one who lived in New York City area from the late 1970s through the mid-1980s can forget the frenetic “Crazy Eddie” television commercials imploring potential buyers to frequent their discount electronics store chain because their prices were “insaaaaaane!” The Crazy Eddie retail chain, technically known as ERS Electronics, was originally founded in 1969 by Eddie Antar, his cousin, Ronnie Gindi and his father, Sam E. Antar (“the Antars”). The business went public in September 1984 and grew to a reported $300 million in sales and 43 stores by the end of 1986, Nevertheless, by 1987, the company and its officers were facing criminal investigations by the SEC and the New Jersey Attorney General, alleging various securities fraud violations as …show more content…
Eddie, who served as President and CEO, left the company in December 1986 after cashing in millions in company stock and options. A proxy battle ensued which resulted in the ousting of the original board in November 1987, including all of the Antars. Unfortunately, it was too late to save the company as ERS Electronics filed for bankruptcy in 1989 and was liquidated. Meanwhile, in September 1989, Eddie Antar was charged with securities fraud and insider trading. He fled to Israel in 1990 using a variety of aliases to escape the criminal charges and an order to repatriate some $53 million. Antar was arrested in June 1992 in Israel and was extradited back to the US in January 1993, now facing racketeering and conspiracy charges. Antar was convicted on 17 felony racketeering and securities fraud counts in July 1993 and sentenced to 12 ½ years in prison in April 1994. However, Antar (and his brother Sam’s) convictions were overturned in April 1995 on appeal and prosecutors announced plans for a new trial. Antar ultimately plead guilty in a plea agreement in May 1996 and in February 1997 was sentenced to 8 years in prison and ordered to pay $150 million in