New York - Eight former executives from the company then known as AOL Time Warner (NYSE: TWX) have been charged by the Securities and Exchange Commission (SEC) with inflating the company's online ad revenues by more than $1 billion between 2000-2002. Four of the executives -- including former controller James MacGuidwin -- have agreed to settle civil charges by paying the SEC about $8 million in fines.

Four others -- including former CFO John Michael Kelly and Joseph Ripp, the former CFO of the company's AOL unit -- have opted to contest the charges in federal court.

The SEC said that the eight took part in fraudulent deals in which AOL Time Warner artificially boosted its own revenue by giving advertisers money to buy online ads they wouldn't otherwise have purchased.

Other former executives to settle include David Colburn, Eric Keller and Jay Rappaport, while charges are still pending against Steven Rindner and Mark Wovsaniker.

Related Links:
http://www.sec.gov/litigation/complaints/2008/comp20586_kelly.pdf (PDF)