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Past Fraud Alleged at InfoSpace

PaidContent points to a strongly-worded investigative story on the bubble days of InfoSpace done by the Seattle Times. The Times alleges that former chairmain Naveen Jain and other senior executives deliberately deceived investors and plotted to thwart securities law restrictions that would have prevented them from cashing out their stock holdings when they knew the then-$31-billion company was built in good part on false expectations and fairy tale revenue projections. Several senior executives gave themselves demotions so that they could have more flexibility to sell company stock before the bottom dropped out, actions for which, in one email from an accounting employee at the time, "if we got caught, we could burn."

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