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AOL Probe Widened to 'Abetting' of Other Firms
Washington Post ^ | Wednesday, March 12, 2003; Page A01 | David A. Vise

Posted on 03/12/2003 7:56:43 AM PST by Liz

The federal investigation of America Online Inc. and two of its former key executives has been broadened to include alleged "aiding and abetting" of schemes by other companies to artificially inflate reported revenue, sources familiar with the probe said yesterday.

Federal investigators are scrutinizing the roles that AOL and two dealmakers, David M. Colburn and Eric Keller, may have played in enabling certain companies, including Homestore Inc., an online real estate firm, to improperly pump up financial results. At the core of the investigation, sources said, Securities and Exchange Commission investigators are examining alleged quid pro quo schemes in which AOL and other companies exchanged cash through sham transactions to falsely boost revenue, both before and after America Online's merger with Time Warner Inc. in January 2001.

The expansion of the probe increases the potential exposure of AOL Time Warner Inc. and the individuals involved, because they could be found culpable not only for the firm's own accounting irregularities but also for the financial misconduct of others, sources said.

AOL Time Warner has been cooperating extensively with investigators in the hope that the company can avoid criminal charges. Still, insiders expect the media giant to face civil sanctions from the SEC.

Yesterday, attorneys for Colburn and Keller, who were ousted from America Online's once highflying dealmaking unit, declined to comment. AOL Time Warner officials reaffirmed their desire to assist in the probe. The company already has reported internal accounting problems totaling $190 million and has turned over thousands of pages of documents to investigators.

"We are continuing to seek to cooperate with the government investigation," AOL Time Warner spokesman Ed Adler said yesterday.

AOL's aggressive dealmaking landed it in the middle of various civil and criminal probes and exposed it to a rash of private lawsuits. The company and its former executives are being investigated by the U.S. attorney's office for the Eastern District of Virginia, the FBI, and the Securities and Exchange Commission. The probes, which began last summer, are likely to continue for months, sources said.

--SNIP--

(Excerpt) Read more at washingtonpost.com ...


TOPICS: Breaking News; Business/Economy; Crime/Corruption
KEYWORDS:

1 posted on 03/12/2003 7:56:44 AM PST by Liz
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To: Liz
Ahhhh. Bringing back memories of the Greatest Economy that W has squandered. *spit* Oh, I loathe the presstitutes for their role...
2 posted on 03/12/2003 7:59:33 AM PST by eureka! (Bless our troops)
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To: Liz
AOL: Internet for Dummies!

I wish them the very worst.

3 posted on 03/12/2003 8:01:52 AM PST by Constitution Day (** RALLY FOR AMERICA: Raleigh, NC ** http://www.freerepublic.com/focus/news/861481/posts)
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To: Liz
If AOL goes out of business (finally) does that mean I won't get their software in the mail every week?
4 posted on 03/12/2003 8:06:49 AM PST by 1Old Pro
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To: Liz
AOL(ptui) enemy of the second amendment.
5 posted on 03/12/2003 8:19:20 AM PST by glock rocks (molon labe, RIP AOL)
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To: 1Old Pro
If AOL goes out of business (finally) does that mean I won't get their software in the mail every week?

If this happens, where will I get coasters and plastic shim stock for free?

6 posted on 03/12/2003 8:19:27 AM PST by jriemer (We are a Republic not a Democracy)
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To: jriemer
Earthlink has been supplying me lately.
7 posted on 03/12/2003 8:42:23 AM PST by razorback-bert (A liberal is Society's version of a computer virus.)
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To: Liz
<< AOL's [Arrogant actions and activities have] landed it in the middle of various civil and criminal probes and exposed it to a rash of private lawsuits. The company and its former executives are being investigated by the U.S. attorney's office for the Eastern District of Virginia, the FBI, and the Securities and Exchange Commission. The probes, which began last summer, are likely to continue for months ..... >>

If there was a nastier bunch of un-and-anti-Americans around that the bunch of envy-motivated and hatred and rage-engined creeps that have owned operated and controlled aol these past few years, it would have to have been comprised of the loathesome and fearsome traitors Berny Schwartz, Lee Wen Ho, Al Goreleone and the KKKli'toons.

And I wish them ALL the dignity of the consequences of their actions!

Best ones -- Brian
8 posted on 03/12/2003 10:49:17 AM PST by Brian Allen (This above all -- to thine own self be true)
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To: 1Old Pro
If AOL goes out of business (finally) does that mean I won't get their software in the mail every week?

No. The machinery to produce the disks and mailers is self repairing and will last for hundreds of years. Constantly cranking out junk mail and shipping it straight to you.

In future generations it will be looked at at one of the great mysteries of the universe. "What is AOL and what are these little plastic disks they keep sending me?"

9 posted on 03/12/2003 10:49:33 AM PST by John O (God Save America (Please))
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To: Liz
so did AOL become corrupt before or after dealing with Ted Turner? Does everything he touch turn evil or does he only touch evil things?
10 posted on 03/12/2003 10:50:56 AM PST by John O (God Save America (Please))
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To: John O
Ted's not all bad. I like his Classic Movie channel and the pix GETTYSBURG and GODS AND GENERALS. They make up for the nutty leftism a little bit.
11 posted on 03/12/2003 11:22:58 AM PST by Argus
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To: Argus
oddly enough TBS used to show biblical type movies (Abraham etc) that were pretty good. Usually biblically accurate. I figured it was his token Christian being allowed to do something to make him look good.
12 posted on 03/12/2003 11:30:35 AM PST by John O (God Save America (Please))
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To: Liz
Any DNC contributers in the bunch?
13 posted on 03/12/2003 11:34:51 AM PST by mabelkitty
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To: mabelkitty
You must be kidding?
14 posted on 03/12/2003 12:06:05 PM PST by Liz
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To: John O
LOL. Existential question.......
15 posted on 03/12/2003 12:07:43 PM PST by Liz
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To: 1Old Pro
Yup, sorry.
16 posted on 03/12/2003 12:20:07 PM PST by Liz
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To: Grampa Dave; Libloather; Mudboy Slim; NormsRevenge; redhead; steve50; cyncooper; ken5050; ...
ping
17 posted on 03/12/2003 12:25:19 PM PST by Liz
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To: Constitution Day
"Raliegh Rally FOR America!!"

AWWWW-RIIIIIIGHT!!!

Way to go, Carolina FReepers!!

FReegards...MUD

18 posted on 03/12/2003 12:44:37 PM PST by Mudboy Slim ("Garde la Foi, mes amis! Jamais reculez tyrannie un pouce!")
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To: Mudboy Slim
Thanks Mud!!!

We're getting it together, but it's been a lot of work.
I'll keep you posted!

CD

19 posted on 03/12/2003 7:03:52 PM PST by Constitution Day (** RALLY FOR AMERICA: Raleigh, NC ** http://www.freerepublic.com/focus/news/861481/posts)
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