03/28/2008 02:45 am ET | Updated May 25, 2011

Cancer-Stricken CEO Admits To Stock Fraud

As part of an unusual deal with the government that will spare him being convicted of a crime or sent to prison, the multimillionaire founder of, Andrew McKelvey, reported to be terminally ill with cancer, admitted he back-dated stock options for company employees and signed and certified falsified public filings with the SEC.

As part of the agreement, the U.S. Attorney's Office will defer prosecution of McKelvey, meaning the charges will be dismissed after 12 months, pending his good behavior and compliance with the agreement. In addition, McKelvey has agreed to pay $8 million plus convert his 4.7 million shares from super voting rights to common rights. A super voting right counts 10 times more than a common one.

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