Criminal Charges Fly Against Former Pegasus Execs

Law360, New York (January 11, 2011, 6:19 PM EST) -- Two former executives of defunct networking technology company Pegasus Wireless Corp. have been charged with defrauding investors by illegally selling shares they secretly controlled and lying about the transactions in regulatory filings.

Former CEO Jasper Knabb and former Chief Financial Officer Stephen Durland each face one count of conspiracy, one count of securities fraud and one count of falsifying books, records and accounts, according to a criminal information unveiled Monday in the U.S. District Court for the Northern District of California.

The first two counts carry...
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