Industry News

Stuart Wolff found guilty in accounting scandal

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Stuart Wolff, the former CEO of Homestore (now Move Inc.) was convicted in U.S. District Court in Los Angeles today on charges relating to a $67 million accounting fraud at the online property listings company, prosecutors said. Wolff, 43, was found guilty of conspiracy, filing false statements with the Securities and Exchange Commission, lying to accountants, fraudulent insider trading, and falsification of corporate books and records. He faces a maximum statutory sentence of 175 years in federal prison for the crimes. Federal prosecutors charged that Wolff was driven by "his ego and his greed" to artificially inflate the company's revenue numbers and deceive investors by creating sham transactions in 2001. Financial accounting problems led Homestore to restate its earnings for parts of 2000 and 2001 and caused its stock to drop to pennies per share, nearly being de-listed, amidst the scandal. Homestore, now re-branded as Move Inc., has since rebounded from the financial proble...