A former executive of Critical Path Inc. was sentenced Wednesday to six months in prison and two years supervised release for insider trading, according to Reuters.
In April, Timothy Ganley, a former vice president of strategic sales for the e-mail software and services company, pleaded guilty to selling 1,300 shares of company stock in January 2001. At the time, he knew the company had inflated revenue and was hiding expenses to gain profitability, according to the report citing the U.S. Attorney’s office, which prosecuted the case.
As part of the sentencing, Ganley, 46, is required to serve six months on home detention and pay a $100 assessment fee. Ganley is from Aptos, CA. He begins serving the sentence on Jan. 13, 2003.
In a separate civil proceeding, Ganley was ordered in March to pay about $108,000 for unlawful stock gains, penalties and interest. The case was brought by the U.S. Securities and Exchange Commission.
The San Francisco-based firm overstated its results by about $10 million two quarters, the report said.
In February, David Thatcher, 47, Critical Path’s former president, pleaded guilty to conspiring to commit securities fraud.
Critical Path’s stock was trading at 69 cents yesterday afternoon.
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