Former Homestore CEO Wolff pleads guilty in fraud case that cost shareholders more than $100M

Ex-Homestore CEO pleads guilty in fraud case

LOS ANGELES — The former CEO and chairman of Homestore Inc. has pleaded guilty in a scheme to inflate the company’s revenue to win over Wall Street analysts.

Stuart Wolff pleaded guilty Tuesday in federal court in Los Angeles. His plea agreement closes a case that resulted in the convictions of 11 other defendants.

Homestore shareholders lost more than $100 million when the company’s stock price plummeted in 2001 amid a federal investigation into accounting practices.

Wolff faces three to five years in prison for conspiring to commit securities fraud. Sentencing is scheduled for April 19.

In 2006, a jury convicted Wolff of more than 12 charges, but an appeals court overturned the conviction.

Homestore provided real estate listings and related services on the Internet. The Westlake Village, Calif., company has since changed its name to Move Inc.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

LOS ANGELES (AP) — The former CEO and chairman of Homestore Inc. is scheduled to plead guilty Tuesday to conspiring to commit securities fraud in a scheme to inflate the company’s revenue to win over Wall Street analysts.

Stuart Wolff is expected to appear in U.S. District Court in Los Angeles. He faces a prison sentence of three to five years.

A jury convicted Wolff in 2006 of more than 12 criminal charges stemming from the complex fraud scheme and he was sentenced to 15 years in prison. However, the 9th U.S. Circuit Court of Appeals overturned the conviction, ruling that the trial judge should have been recused.

The plea agreement will close a case that resulted in the convictions of 11 other defendants and caused Homestore shareholders to lose more than $100 million when the company’s stock price plummeted in 2001 on news of the federal investigation into irregular accounting practices.