AOL charge on Aiding/Abetting Securities fraud - prosecution deferred 2yrs

[The Straight Story]

AMERICA ONLINE CHARGED WITH AIDING AND ABETTING SECURITIES FRAUD; PROSECUTION DEFERRED FOR TWO YEARS

Company Agrees to Cooperate With Investigation, Pay $210 Million; Four Individuals Agree to Plead Guilty

WASHINGTON, D.C. – Deputy Attorney General James B. Comey, Assistant Attorney General Christopher A. Wray of the Criminal Division, U.S. Attorney Paul J. McNulty of the Eastern District of Virginia and Assistant Director Chris Swecker of the FBI announced today that America Online, Inc., (AOL) has entered into an agreement with the government to defer prosecution on charges of aiding and abetting securities fraud in connection with transactions between AOL and PurchasePro.com.

A criminal complaint filed today in the Eastern District of Virginia charges Dulles, Virginia-based AOL with aiding and abetting securities fraud, in violation of 18 U.S.C. Section 2, 15 U.S.C. Sections 78j(b) and 78FF, and Title 17, Code of Federal Regulations, Section 240.10b-5. AOL has agreed to accept responsibility for the conduct of its employees in the PurchasePro transactions, adopt internal compliance measures and cooperate with an ongoing criminal investigation. An independent consultant will be chosen to monitor the company's compliance with the agreement. AOL has also agreed to pay into a compensation and settlement fund $150 million and a criminal penalty of $60 million.

Based on AOL's acceptance of those conditions and others, the Department of Justice has agreed to defer prosecution on the complaint for 24 months. A separate agreement also requires AOL's parent company, Time Warner, Inc., to cooperate with the ongoing criminal investigation.

In addition, four former PurchasePro executives have agreed to plead guilty to criminal charges arising from the investigation into the AOL/PurchasePro transactions.

"Today's deferred prosecution agreement gives AOL a chance to make amends for its conduct and clean up its act, in return for a stiff penalty and far-reaching reforms," said Deputy Attorney General Comey, the chairman of the President's Corporate Fraud Task Force. "In this major corporate investigation, the government has achieved a result that minimizes the collateral damage to shareholders and employees while imposing appropriate punishment and protecting the rights of victims

http://www.fbi.gov/dojpressrel/pressrel04/aolrelease121504.htm

[pnutchuck]

1. But Martha Stewart goes to prison!!!!!

Chauvenistic pigs, every fucking one of them!!!!!

[Ian David]

2. Martha Stewart donated 100% Democrat

AOL, on the other hand...

[Solon]

3. Typical cost of doing business, if anyone thinks this will change...

any of their business practices, I would like to have what they are smoking. The only acceptable solution to such illegal practices as this is to pull the charter for business. This is stupid, 210 million dollars, how much did they make last year, and how much do they have in cash on hand? This is like me paying a 10 dollar speeding ticket, would I really stop speeding if it was that low? Hell no, if it was 100 dollars, I might consider it.