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Google's Top Counsel Facing Securities Fraud Allegations

by Glen Shapiro, LawAndTax-News.com, Brussels

30 July 2004

It emerged this week that Google's general counsel and vice president of corporate development, David Drummond is facing allegations of securities fraud relating to his previous position with Irish e-learning firm, SmartForce.

According to a filing made by the internet search portal with the US Securities and Exchange Commission this week, the accusations have been made in connection with Mr Drummond's work with SmartForce, which merged with US-based SkillSoft in 2002. The former company then admitted to several quarters of accounting problems, a disclosure which prompted an 18-month investigation.

The SEC reportedly intends to bring a "civil injunction action" against the Google official, alleging "violation of federal securities laws, including anti-fraud provisions" in connection with his employment at SmartForce.

Mr Drummond, however, is in the process of preparing a submission for the securities regulator explaining why the charges should not be brought against him. Google announced this week that it has "the utmost confidence in David's integrity, as well as his abilities as a Google executive".

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