Feds Eye 6 Years For Ex-Pegasus CEO In Stock Fraud

Law360, New York (March 2, 2012, 6:51 PM EST) -- Federal prosecutors on Thursday implored a California federal judge to sentence the former CEO of Pegasus Wireless Corp. to 6 1/2 years in prison for a stock-selling fraud that bilked investors and aided the networking technology company's demise.

Jasper Knabb is set to be sentenced March 8 after pleading guilty in July to a three-count indictment alleging he sold millions of Pegasus shares to satisfy bogus debt. As part of a plea agreement, Knabb admitted he drafted 31 fake promissory notes and other documents, issued shares...
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