Online ad fraud case hits snag
An unusual twist has occurred in a fraud case involving an Internet start-up accused of misreporting its earnings from an advertising deal with AOL during the dot-com boom.
Charles E. Johnson, Jr., who faces federal fraud and conspiracy charges in connection with his CEO role at now-defunct software maker PurchasePro.com, won't be tried alongside others allegedly involved in the scheme, a federal judge has ruled.
A clerk for U.S. District Judge Walter Kelley Jr. in Alexandria, Va. confirmed on Friday that a mistrial was declared last week in the case of Johnson, who was indicted along with other former PurchasePro executives last January. Former AOL employees were also charged.
That means Johnson will be tried separately from the others and at a later date, the clerk said. The reasons for the mistrial declaration were filed under court seal.
The news was reported Saturday by the Washington Post.
Citing anonymous sources, the Post said the mistrial finding stemmed from allegations of misconduct by Johnson, described as a "tough-talking former college basketball player." The mistrial declaration occurred as Johnson's lawyer successfully petitioned to withdraw himself from the trial just three weeks after it began--a move characterized as unusual by experts interviewed by the Post.
A jury trial involving the three remaining defendants--former AOL employees Kent Wakeford and John Tuli and former PurchasePro executive Christopher Benyo--was scheduled to resume on Thursday, according to the Post. All have entered not-guilty pleas. Two other PurchasePro executives pleaded guilty to related charges in 2003.
