Ex-Pegasus CEO Cops To $25M Stock Scheme

Law360, New York (July 29, 2011, 1:33 PM EDT) -- The former CEO of defunct networking technology company Pegasus Wireless Corp. pled guilty on Thursday in a California federal court to charges stemming from the illegal sale of millions of shares of stock he issued to satisfy bogus debt.

Jasper Knabb, 44, admitted he drafted 31 fake promissory notes and other documents showing that Pegasus had outstanding debt, according to prosecutors. He then had the company issue shares to satisfy the phony debt. Finally, Knabb and the company's former chief financial officer funneled proceeds from the...
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