Executives Indicted in Check Scam
.c The Associated Press
LOS ANGELES (AP) - Two executives and a consultant are accused of stealing $3 million from the now-defunct Internet company of comics legend Stan Lee and two financial institutions.
The Stan Lee Media executives allegedly wrote checks for millions of dollars from accounts with no money, deposited the checks at US Bank and investment firm Merrill Lynch, and then drew cash from those institutions.
US Bank lost $1.3 million and Merrill Lynch lost $1 million, authorities said.
A 36-count indictment announced Thursday charges company co-founder Peter Paul, the company's former chief operating officer Stephen M. Gordon and his brother, Jonathan, a Merrill Lynch consultant, with conspiring to commit fraud, and wire and bank fraud against US Bank and Merrill Lynch.
Lee, who revolutionized the comic book with vulnerable superheroes such as Spider-Man and The Incredible Hulk, founded Stan Lee Media with Paul. Lee wasn't charged.
The men also face charges in New York arising from an alleged scheme to manipulate Stan Lee Media's stock price.
The Web site was touted as an online entertainment destination for 6-to 20-year-olds. After being traded at more than $20 a share, the company's stock price plunged late in 2000. Following layoffs of most of its staff, the company filed for bankruptcy.
Paul, 52, was arrested in Brazil, Assistant U.S. Attorney David Seide said Thursday. Stephen Gordon, 50, was free after posting a $300,000 bond, Seide said. It couldn't be immediately determined if Jonathan Gordon, 43, of Malibu, was in custody.
There were no telephone listings for Paul or Jonathan Gordon. A number for a Stephen Gordon was unpublished.
AP-NY-10-26-01 2204EDT |
