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Published on: 5/19/2008
Last Visited: 5/24/2008
Charles H. Johnson Jr., the former chairman and CEO of PurchasePro.com Inc., operator of the PurchasePro.com marketplace and a provider of online procurement software, has been convicted of conspiring to commit securities fraud, securities fraud, witness tampering and obstructing an official proceeding, the U.S. Justice Department announced last week.
Johnson was indicted in January 2005 on charges that he and other executives falsely inflated revenue in the first quarter of 2001 from software licenses and from an alliance with American Online Inc.
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Johnson tried to manipulate the system for his own gain at the expense of the investing public, and now will be appropriately punished."
Johnson's first trial before federal judge Kelley began in October 2006 and ended in a mistrial after Johnson's attorney withdrew.In the second trial, which began in October 2007, the government added a charge of obstructing a federal proceeding stemming from Johnson's alleged conduct during his original trial.