Wednesday, March 09, 2005

Peter Paul pleads guilty to stock manipulation

Reuters reports that Stan Lee Media co-founder Peter Paul pleaded guilty on Tuesday to a charge of manipulating the stock of the now-defunct company. Paul faces more than 10 years in prison.

Paul was indicted in 2001 on stock fraud and conspiracy charges following the collapse of the publicly trade company. Prosecutors claim he operated a "pump and dump" scheme to artificially inflate the price of company stock while secretly selling his own shares.

Although it's been speculated that the plea would clear the way for him to testify at the trial of David Rosen, the national finance director of Sen. Hillary Clinton's 2000 campaign, Paul denies making any deal with federal prosecutors.