Industry News

Lawyers seek new trial for ex-Homestore CEO

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Lawyers for Stuart Wolff, the former CEO for Homestore whom a jury convicted in June for his role in an accounting fraud scandal, on Friday filed an appeal seeking a new trial or re-sentencing before a different judge. Wolff was sentenced to a 15-year prison term for conspiracy, filing false statements with the U.S. Securities and Exchange Commission, lying to accountants, fraudulent insider trading, and falsification of corporate books and records. Eleven other former Homestore officials have also been convicted for their participation in illegal schemes, which included fraudulent transactions and inflated earnings reports that led the company to restate its earnings and almost forced the delisting of the company's stock. The court brief asks the 9th Circuit U.S. Court of Appeals to review whether U.S. District Court Judge Percy Anderson, who presided over Wolff's trial, should have been allowed to oversee that trial because of his financial interest in AOL, a company that was a part...