AOL Sues Former Exec, Claiming Fraud - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance

AOL Sues Former Exec, Claiming Fraud

It says Gregory Horton, fired in August as chief of human resources, bilked the company of $100,000 in a scheme to divert money to a sham company.

NEW YORK (AP) -- America Online is suing its former chief of human resources, Gregory Horton, claiming that he bilked the company of $100,000 in a scheme to divert money to a sham company.

In a suit filed Friday in Circuit Court of Loudoun County, Va., AOL claims that Horton and several associates conspired to defraud the company by having it enter bogus contracts, and then having the money sent to a shell company that they controlled.

AOL fired Horton in August after reviewing the suspect payment. AOL said it later discovered what it called "a scheme to defraud AOL" after it reached a separation agreement with Horton.

In October, AOL fired another executive in its human resources division who had worked for Horton, Ruben Moreno. AOL also named Moreno in the lawsuit, claiming that he participated in the embezzlement scheme.

AOL, which provides subscribers with access to the Internet and other online services, is seeking compensatory damages to be determined at trial, as well as punitive damages and other compensation.

AOL also says the defendants used a similar scheme to siphon money from "at least one other of Horton's former employers," but it did not specify which one.

Horton's previous employment includes stints at PepsiCo Inc., AutoNation Inc., and Qwest Communications International Inc. A spokesman for AutoNation declined to comment, and Qwest did not return a call seeking comment.

PepsiCo said it was conducting its own investigation, and that Angel Rodriguez, a current PepsiCo executive who was named in the AOL lawsuit, was cooperating. PepsiCo said Rodriguez asserts that he has done nothing wrong.

An AOL spokesman declined to comment on the case. Horton's lawyer, Judith Wheat, did not return a phone call seeking comment.

While the amount of money at stake is relatively small, the case is sure to resonate in the current climate of corporate scandals and fraud.

AOL's parent company, Time Warner Inc., is being investigated itself by securities regulators over the accounting for an advertising deal that AOL made with the German media company Bertelsmann.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Slideshows
10 Ways to Transition Traditional IT Talent to Cloud Talent
Lisa Morgan, Freelance Writer,  11/23/2020
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Commentary
Can Low Code Measure Up to Tomorrow's Programming Demands?
Joao-Pierre S. Ruth, Senior Writer,  11/16/2020
Register for InformationWeek Newsletters
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll