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5 commentsTuesday, November 18, 2008

PurchasePro Founder Gets 9 Years

Convicted of stock fraud

5 Comments

Good. I like that resep

Good. I like that resep masakan

Jr did profit

Although Johnson never sold his stock, he did pledge it for a $100M credit line.  Thus, he was able to use the inflated stock price to obtain a credit line and bought houses, a plane, autos, etc, etc.

Technically, he never sold stock.  Realistically, he borrowed a great deal of money on the stock and the bank sold the stock.

In addition, Johnson made a fortune on salary, bonuses, etc.

If you believe that what Johnson did was the same as what AOL did, you have not read the legal docs, nor do you know what you are saying.

Jeff

Sentencing

Without knowing a great deal more detail it is difficult to judge but it seems to me that, if Johnson really did not profit personally from events, nine years in a penitentiary,  at the tax-paying public´s expense what is more, is a pretty harsh treatment to mete out.

Surely, it would have been better to fine him a sum of money, payable if necessary over a period of years from future income, than to put him away.

Judging by the variations in the lengths of sentences in many countries, including the US, it would appear that beating people up and harming them physically is more acceptable than overselling ones´product!

It´s a pity that, instead of rewarding bankers, mortgage company executives and insurance moguls with annual bonuses, regardless of performance, they don´t send all of them to the pen for almost a decade for having been engaged in doing pretty much the same thing for quite some while now...

That´s just my opinion, of course :-)

Your all fooled

Jeff is the closest and most accurate to what happened.  He personally never sold a share..but he took loans out against his shares.  Then let the banks deal with the sales if the stocks tanked.  He knew what he was doing from the beginning.  All the execs did the same thing.  They were all his pawns - he said jump they asked how high. 

You can all bash if you feel free but i know all this first hand.

I agree

I agree with you Linnet, 9 years in prison is harsh considering Johnson did not profit personally. Additionally, AOL was just as guilty and got off scott free... not exactly fair and equal justice.

Rich Ord
CEO, iEntry, Inc.
Publisher of WebProNews

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