Former Critical Path Chief Pleads Guilty
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Critical Path Inc.’s former president pleaded guilty to conspiracy to commit securities fraud for directing the e-mail software company to overstate revenue in 2000.
Prosecutors indicted David A. Thatcher, 47, earlier this month for allegedly playing a role in the company’s inflation of its third- and fourth-quarter revenue for 2000. Thatcher agreed to cooperate with investigators and faces up to five years in prison and a $250,000 fine.
In a plea agreement with federal prosecutors, Thatcher said he participated in a criminal conspiracy “to report false revenues to meet Critical Path’s predicted financial results.”
Sara Brody, Thatcher’s attorney, could not be reached for comment. Shares of Critical Path fell 15 cents to $2.40 on Nasdaq.
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