AOL Probe Widened to 'Abetting' of Other Firms

Washington Post ^ | Wednesday, March 12, 2003; Page A01 | David A. Vise

[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--

[eureka!]

Ahhhh. Bringing back memories of the Greatest Economy that W has squandered. *spit* Oh, I loathe the presstitutes for their role...

[Constitution Day]

AOL: Internet for Dummies!

I wish them the very worst.

[1Old Pro]

If AOL goes out of business (finally) does that mean I won't get their software in the mail every week?

[glock rocks]

AOL(ptui) enemy of the second amendment.

[jriemer]

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?

[razorback-bert]

Earthlink has been supplying me lately.

[Brian Allen]

<< 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

[John O]

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?"

[John O]

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?

[Argus]

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.

[John O]

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.

[mabelkitty]

Any DNC contributers in the bunch?

[Liz]

You must be kidding?

[Liz]

LOL. Existential question.......

[Liz]

Yup, sorry.

[Liz]

ping

[Mudboy Slim]

"Raliegh Rally FOR America!!"

AWWWW-RIIIIIIGHT!!!

Way to go, Carolina FReepers!!

FReegards...MUD

[Constitution Day]

Thanks Mud!!!

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

CD