9-Year Fraud Sentence For PurchasePro Exec Affirmed

Law360, New York (July 12, 2010, 7:07 PM EDT) -- A federal appeals court has affirmed the securities fraud conviction and nine-year prison sentence of Charles E. Johnson, the former CEO of PurchasePro Inc. who allegedly created fraudulent transactions to artificially inflate the online business company's revenues.

The U.S. Court of Appeals for the Fourth Circuit issued the ruling Monday, upholding a lower court's ruling that also required Johnson to pay $9.7 million in restitution. Johnson was also found guilty of obstruction of justice and tampering with a witness.

PurchasePro sold “marketplace licenses” intended to provide...
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