Regulators examining America Online's accounting are likely to look into possible securities infractions, say experts familiar with such inquiries.
"Anything that falls within the scope of federal securities laws is appropriate for SEC inquiry," said Jacob Frenkel, a former Securities and Exchange Commission prosecutor.
The SEC and Justice Department began their inquiries into the online unit of AOL Time Warner last month. Many industry experts have said the inquiry may take some time and may widen to other areas.
"From my experience as an SEC enforcement lawyer, [insiders' share sales and projections by executives] are absolutely logical investigative courses for enforcement staff to follow," he added.
The Financial Timesreported on its website late Thursday the SEC was set to examine a series of upbeat forecasts made last year by AOL Time Warner executives. It did not cite any sources.
An SEC spokesman and an AOL Time Warner spokeswoman declined to comment.