Legal Ethics

Lawyer Likely to Turn Witness in Ex-Client’s Stock Fraud Trial

The ex-lawyer for a former dot-com billionaire is expected to testify against him in his stock-fraud trial.

Lawyer Preston Burton is expected to testify about allegations that Charles “Junior” Johnson pushed him to introduce fake e-mails as evidence, the Washington Post reports. Prosecutors have added a charge of obstruction of justice to cover the allegations against Johnson, who was a majority owner of the now-defunct company PurchasePro.

An earlier prosecution of Johnson for making misleading statements about company revenue ended in a mistrial last year. His lawyers contend the fact that he held on to his own stock even as his company took a nosedive shows he was not guilty of fraud.

The retrial is getting under way in federal court in Alexandria, Va.

We welcome your comments, but please adhere to our comment policy and the ABA Code of Conduct.

Commenting is not available in this channel entry.