Monday, March 17, 2014

Software Firm CEO Guilty Of Securities, Wire Fraud

NEW YORK—The chief executive officer of Wwebnet, Inc., a software development company, plead guilty Friday in Manhattan federal court to securities and wire fraud charges.

Robert Kelly, 57, formerly of New York City, resides in Raleigh, NC.

He entered guilty pleas to one count of securities fraud and one count of wire fraud, which together carry a total maximum term of 40 years in prison.

Kelly also agreed to forfeit $2,111,600 and, separately, pay $2,111,600 in restitution.

The sentencing before U.S. District Judge Paul A. Crotty is scheduled for July 17.

Kelly diverted for his own personal use more than $2 million in investor proceeds that was intended for the development of a software program capable of transmitting music, videos, and movies over the Internet. He used the money to trade options, to pay his personal income taxes, and for other purposes unrelated to software development or other legitimate business expenses.