Ex-Critical Path Exec Pleads Guilty
Sep. 25, 2002
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SAN FRANCISCO (AP) _ A former Critical Path Inc. sales executive pleaded guilty to insider trading charges Tuesday, joining two other ex-employees who previously admitted to criminal conduct while working for the e-mail provider.
Kevin P. Clark of Pleasanton faces up to 10 years in prison and a $1 million fine after acknowledging that he illegally sold more than $350,000 in Critical Path stock in January 2001 before Wall Street learned of an accounting scandal he had helped create.
Authorities alleged Clark, formerly a regional vice president of sales at Critical Path, sold his stock after fabricating bogus revenue in late 2000.
Clark, 37, became the third former Critical Path employee to confess to a felony. His sentencing date has not been scheduled.
Timothy J. Ganley, formerly the company's vice president of strategic sales, was sentenced to six months in federal prison earlier this month after he pleaded guilty to insider trading.
David A. Thatcher, formerly the company's president, also admitted helping cook the books in a scheme that grounded the San Francisco-based company's once high-flying stock. Thatcher's sentencing has been delayed while he helps authorities with the investigation.
Jonathan A. Beck, another former Critical Path sales executives, also faces charges of illegal stock trading. His next court appearance is scheduled Oct. 8.
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