Ex-LendingTree Exec Pleads Guilty

A former vice president of LendingTree Inc., an Internet-based loan matchmaker, pleaded guilty to obstruction of justice for lying to the Securities and Exchange Commission, according to the U.S. attorney’s office in North Carolina.

Brian Paquette faces as many as five years in prison and a $250,000 fine, according to the plea agreement with the federal prosecutor. He also agreed to pay $29,058 to settle the SEC’s claims that he shared information that led to insider trading, the agency said Monday in a statement.

Paquette and former employee William Lawrence told associates about LendingTree’s pending 2003 merger with IAC/InterActiveCorp, allowing Lawrence and others to profit by buying shares before the announced news sent the stock up, the SEC said. Neither of the former employees admitted or denied wrongdoing.

It’s the fourth insider-trading case tied to the LendingTree merger. Another former vice president and two sales directors paid $420,000 in November 2004 to settle SEC claims that they profited by buying LendingTree shares before they jumped 41% on the merger news.

Lawrence will pay more than $6,300 to settle the case, the SEC said. His former employer, based in Charlotte, N.C., matches lenders with consumers who wish to buy homes and cars. Parent firm IAC also owns Ask Jeeves Inc, Ticketmaster and Match.com.

IAC shares rose 25 cents to $25.23.