L90’s Ex-CFO Pleads Guilty in Scheme
From Associated Press
The former chief financial officer of an Internet advertising company pleaded guilty in federal court in Los Angeles to conspiracy to commit securities fraud through a scheme to disguise bartered revenue as actual income.
Thomas A. Sebastian, a former executive at then-Santa Monica-based L90 Inc., was accused of signing financial documents he knew contained false and misleading information.
U.S. District Judge Percy Anderson set sentencing for June 7. Sebastian, 39, could receive as many as five years in prison.
Through the fraudulent transactions, L90 -- now called MaxWorldwide Inc. and based in Greenwich, Conn. -- overstated its revenue from the third quarter of 2000 to the third quarter of 2001 by at least $4.3 million, prosecutors said.
