Report: FBI questioning PurchasePro execs

Wednesday, Feb. 5, 2003 | 11:16 a.m.

SUN STAFF AND WIRE REPORTS

Several former PurchasePro.com executives have been sought for questioning by the FBI in recent weeks over the now-defunct Las Vegas company's dealings with AOL Time Warner Inc.'s America Online unit, the Wall Street Journal reported today.

The Federal Bureau of Investigation has contacted the former executives to schedule interviews, though it hasn't specified what the investigation concerns, the newspaper said in its online edition, citing people familiar with the situation.

PurchasePro.com, which filed for bankruptcy protection in September and has been sold to California-based Perfect Commerce Inc., said in September that it reached an agreement in principle to settle a Securities and Exchange Commission investigation.

But neither PurchasePro nor the SEC would disclose what the investigation was about and it was unclear if the probe involved an inquiry earlier confirmed by PurchasePro involving the AOL deal.

AOL Time Warner in October said it would restate two years of results, reducing revenue by $190 million, after finding improperly recorded sales at America Online.

The Department of Justice and the SEC are focusing their inquiry on America Online and some of its former executives, including Eric Keller and David Colburn, the paper said. Prosecutors will decide if they want to bring charges later this year.

AOL Time Warner declined to comment to the Journal. Spokeswoman Tricia Primrose didn't immediately return a voice-mail message left by Bloomberg News after hours at her office. Attorneys for Keller and Colburn didn't immediately return messages left at their offices after hours.