SEC scrutinizes AOL's deal with PurchasePro
InfoWorld | at | by Mike
The U.S. Securities and Exchange Commission (SEC) has broadened its probe of AOL Time Warner's (AOLTW) financial practices to examine the company's relationship with Las Vegas software company PurchasePro, according to a published report.
AOLTW is under investigation by both the SEC and the U.S. Department of Justice (DOJ) for alleged financial misdealing such as improperly booking revenue from business partners like PurchasePro. AOLTW forged a deal with the business purchasing software company in March of 2000 whereby it agreed to help PurchasePro sell its software in return for part of the revenue and warrants for PurchasePro's stock.According to a report in Friday's online edition of the Wall Street Journal, AOLTW is being investigated for cashing in $27 million worth of PurchasePro stock and booking it as advertising revenue.