SEC Charges ex-AOL Execs on Online Ad Fraud

By Geoff Duncan May 20, 2008

SEC Charges ex-AOL Execs on Online Ad Fraud

The United States Security and Exchange Commission has announced it has charged eight former AOL Time Warner executives for their roles in a scheme that overstated the company’s advertising revenue by more than $1 billion. Four of the defendants have settled with the SEC, while the other four are facing fraud charges in a New York federal court.

According to the SEC, the scheme ran from 2000 to 2002, and falsely inflated the company’s reported online advertising revenue by giving ad purchasers money to buy online advertising they didn’t want or need. The net effect of these transactions that AOL Time Warner was effectively funding its own ad sales, which are used as a key metric by analysts and investors looking at the company. Two of the defendants were also charged with misleading external auditors about the fraudulent transactions.

As part of the settlements, four former AOL Time Warner execs have agreed to pay over $8 million in fines, with former head of the company’s business affairs unit personally forking over almost $4 million. The SEC says it is seeking civil penalties from the four former executives who have not settled, as well as disgorgement of ill-gotten gains.

Time Warner settled a related case with the SEC in 2005 for $300 million.

Former Digital Trends Contributor

Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…

Smart Home

Eve MotionBlinds Upgrade Kit and Blinds Collection join the Matter lineup

The Eve MotionBlinds Upgrade Kit being installed.

Eve is a prominent name in the smart home world, with the company responsible for a variety of devices covering everything from smart plugs and security cameras to smart light switches and motion sensors. Its catalog is growing even more enticing today, with the Eve Blinds Collection and MotionBlinds Upgrade Kit gaining Matter support.

The MotionBlinds Upgrade Kit will likely appeal to more customers, as it costs just $200 and works with most existing setups. Installation is as simple as removing your shades, placing the MotionBlinds Upgrade Kit through the roller rod, then reinstalling the unit on your windows. Blinds with a roller between 1.5 inches and 2.0 inches are compatible with the upgrade kit.

Smart Home

Philips Hue lights have a rare discount, but there’s a catch

A TV with ambient backlighting from Philips Hue.

One of the cool things about Philips Hue lighting is how much freedom it gives you over creating the perfect ambiance in your home. One of the cool things about buying Philips Hue products over at Best Buy right now is how much freedom Best Buy is giving you over what you buy to save money. Right now, when you buy two or more select Philips Hue smart lighting product in Best Buy's offer builder, you can save 15%. Tap the button below to start building your own bundle and see all of the products available. While they don't include the best smart light bulbs that Philips produces, you'll be amazed by the versatility of the lightstrips. Or keep reading for an overview of some of the top picks from the bundle.

What you should purchase from the Philips Hue offer builder
The place to start with this deal is the and the if you don't already have them. These are the devices that take your movies, music, and games and syncs them to your lights.

Smart Home

Samsung’s futuristic Jet Bot AI+ robot vacuum is $400 off

The Samsung Jet Bot AI+ Robot Vacuum cleaning the floor.

For families who need a lot of help in keeping their floors spotless, the Samsung Jet Bot AI+ is an investment that you'll want to make. It's pretty expensive at its original price of $1,300, but a $400 discount from Samsung pulls it down to $900. It's still not cheap, but this futuristic robot vacuum could be the only device that you need to keep dirt, debris, and pet hair away from your sight. You're going to have to complete your purchase for it as soon as possible though, as there's no telling when the offer expires.

Why you should buy the Samsung Jet Bot AI+ robot vacuum
The Samsung Jet Bot AI+ checks all the boxes in the features that are recommended by our guide on how to choose a robot vacuum. It's equipped with powerful sensors and object recognition technology that allows it to avoid furniture when it's cleaning your floors, while LiDAR technology allows it to create accurate maps of the rooms in your home so that it can properly navigate and clean more efficiently. The robot vacuum also features a five-layer filtration system that allows it to release clean air, and when it's done, it goes back to its Clean Station where it empties its contents.