Busted: Eight Ex-AOL Execs Charged With Ad Revenue Fraud

Former AOL Time Warner CFO John Michael Kelly and seven other people were charged by the Securities and Exchange Commission with causing the overstatement of ad revenue by over a billion dollars.

While four of the former executives paid off settlements with the SEC to escape its clutches without admitting or denying anything, four more intend to battle back against the Feds.

The litigation release from the SEC, the SEC alleged that from at least mid-2000 to mid-2002, the quartet "engineered, oversaw, and executed fraudulent round-trip transactions in which AOL Time Warner effectively funded its own advertising revenue by giving purchasers the money to buy online advertising that they did not want or need."

"Kelly and Wovsaniker, both certified public accountants, also are charged with misleading the company's external auditor about the fraudulent transactions," the statement continued.

The Journal reported Kelly, Wovsaniker, and Ridner plan to contest the charges. Wovsaniker's attorney countered the claims by stating his client "actively sought to prevent improper conduct by others and that various persons acted contrary to his instructions." Wovsaniker has also been called as a federal witness in several related cases.

Of the four who settled with the SEC,