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The criminal case against several former Critical Path Inc. executives expanded Tuesday as federal prosecutors brought insider trading charges against two former vice presidents of the San Francisco company. The new charges bring to four the number of executives who face criminal penalties in connection with an alleged scheme to fraudulently inflate the e-mail provider’s stock price during the heyday of the Internet boom. The investigation appears to be ongoing. The charges were contained in two criminal informations filed Tuesday against Kevin Clark, 37, and Jonathan Beck, 33. Both are former sales vice presidents at the company. Informations are not the result of a grand jury investigation and are generally considered a sign that the defendant is cooperating with investigators. Clark is represented by George O’Connell of Sacramento’s Stevens & O’Connell. Beck is represented by James Lassart of Ropers, Majeski, Kohn & Bentley. Neither could be reached for comment. The case is being prosecuted by Assistant U.S. Attorney David Anderson. In February, the government charged David Thatcher, the company’s former president, with conspiracy to commit securities fraud. He pleaded guilty and is cooperating with authorities. He has not been sentenced. At the same time, the government charged another former sales vice president, Timothy Ganley, with insider trading. He pleaded guilty in April and will be sentenced Sept. 10. Critical Path was, for a time, a symbol of the success of South of Market’s Multimedia Gulch. Its stock price more than doubled at its initial public offering, and later rose to more than $100 per share. On Tuesday, it closed below $1. All three of the sales vice presidents charged were alleged to have dumped company stock before Critical Path announced financial restatements in April 2001. By that time, the company was named in several securities fraud suits. Northern District Judge William Alsup gave final approval to a settlement this summer, but the company faces another suit in New York by breakaway investors who opted out of the initial case. Prosecutors and the Securities and Exchange Commission began investigating the company after the restatements. In its most recent regulatory filings, the company said the SEC has closed its investigation into the company. The SEC’s investigation into former officers is ongoing. One former executive who has not been charged is former Chief Executive Officer Douglas Hickey. The SEC also filed charges against Beck, Clark and another former executive, William Rinehart on Tuesday. Rinehart and Clark have reached settlements with the SEC. In the complaint, the SEC alleged that Rinehart, who was in charge of North and Latin American sales, arranged for his sales team to create transactions resulting in $6.3 million in improper revenue for the fourth quarter of fiscal 2000. Beck and Clark were alleged to have participated in the scheme. Beck is alleged to have sold more than $600,000 in stock. Clark allegedly sold more than $350,000 worth.

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