Former Homestore chairman agrees to pay $11.9M in restitution

Stuart Wolff will have 3 years to pay

The premier event for luxury agents and brokers
Luxury Connect | Oct. 16-18 | Beverly Hills

Former Homestore Inc. chairman and CEO Stuart Wolff has agreed to pay $11.9 million in restitution to settle allegations that he and other company officers fraudulently inflated revenue to pump up Homestore’s stock.

Wolff’s consent agreement with the U.S. Securities and Exchange Commission could be the final chapter in a scandal that nearly brought down Realtor.com operator Homestore, which has since rebranded as Move Inc.

A decade ago, at the height of the dot-com boom, Wolff and other Homestore executives created a complex structure of "round-trip" transactions using various third-party companies for the sole purpose of generating false advertising revenue for Homestore, the SEC alleged in a 2005 complaint.