News Brief

SEC Charges Former AOL Execs With Fraud

The Securities and Exchange Commission said Monday that it has charged eight former AOL executives with fraud for allegedly overstating the company's online ad revenue by more than $1 billion between 2000 and 2002. Four defendants settled Monday, while four are still facing federal charges.

The former executives facing suit are John Michael Kelly, ex-chief financial officer of AOL Time Warner; Steven Rindner, former senior executive in the business affairs unit; Joseph Ripp, ex-CFO of AOL; and Mark Wovsaniker, former head of accounting policy.

The four who settled are David Colburn, former head of the company's business affairs unit; Eric Keller, former senior manager in the business affairs unit; James MacGuidwin, former controller; and Jay Rappaport, former senior manager in the business affairs unit. They did not admit wrongdoing, but agreed to pay fines ranging from $750,000 to nearly $4 million. Colburn also has agreed that he will not serve as an officer or director of a public company for 10 years, while MacGuidwin agreed to a 7-year ban.

--Wendy Davis

Tags: legal, online, portals
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