SEC and Other Investigations of Illegal Trading
- Kirk
- CaptRon
- Kirk
- Kirk
- Q_out
- Q_out
- Jen_
- Kirk
- Kirk
- Jen_
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» Kirk - Qwest Says Used Improper Accounting
.Yet another shoe drops?
I wonder if They were selling capacity to each other and booking it as revenue... when all they were doing is shuffling money around???
http://biz.yahoo.com/rb/020728/telecoms_...
Qwest Says Used Improper Accounting
DENVER (Reuters) - Qwest Communications International Inc., which is the subject of an accounting investigation by the U.S. Securities and Exchange Commission, said on Sunday it used improper accounting methods in 1999 through 2001 and will restate its financial results.
Qwest, the dominant local telephone company in 14 states from Minnesota to Washington, also withdrew its financial forecasts for 2002, citing ongoing weakness in the telecommunications sector, stiff competition and softness in regional economy. It said all areas of its business have been hurt.
The Denver-based company, which also faces a criminal probe by the U.S. Justice Department, said it improperly accounted for about $1.16 billion in sales of optical capacity on its network, as well as sales of communications equipment. The company said it is reviewing the accounting practices and may be required to restate all optical capacity sales.
The expected restatement of the company's financial statements will also include adjustments for three transactions relating to the sale of communications equipment.
Qwest said its new auditor, KPMG, will not be able to finalize its review of the second quarter financial report. Qwest is one of several telecommunications companies, including bankrupt carriers Global Crossing Ltd. and WorldCom Inc., to come under scrutiny by federal regulators.
-- posted by Kirk
» CaptRon - SEC list of cos required to file, and date of filing
Updates early filers:http://www.sec.gov/rules/extra/ceocfo.htm
(Kirk, you might want to place this link on a different thread for easier ongoing access until Aug 14th)
-- posted by CaptRon
» Kirk - Qwest Insiders Made Millions
.I say we go after them for ALL the gains they got from selling. Put these gains back in the Company treasury or make a "super fund" to split amoung all people robbed by these thiefs.
One thing I DO NOT WANT is for the lawyers to get the majority of the reclaimed booty...
Kirk
NYT: Qwest Insiders Made Millions
NEW YORK (Reuters) - Executives at Qwest Communications International (NYSE:Q - News) made about $500 million selling company stock from 1999 to 2001, as the company was releasing results it now says were exaggerated and based on improper accounting, The New York Times reported on Tuesday.
Joseph P. Nacchio, Qwest's chief executive until he was forced to resign last month, made $227 million, the paper said, citing Thomson Financial, a research company that tracks Securities and Exchange Commission filings.
Robert S. Woodruff, the chief financial officer until last year, made $29 million, while Drake S. Tempest, the current general counsel, made $13 million, the Times reported.
In addition, Philip F. Anschutz, a member of Qwest's board and the company's largest shareholder, made almost $1.5 billion selling shares in May 1999, the paper said. Most of the largest stock sellers have resigned from Qwest in the last 18 months.
Qwest's new chief executive, Richard C. Notebaert, said on Sunday the company had exaggerated revenue and understated costs over the last three years and would restate its results for 1999 to 2001 after it had completed an internal review of its accounting.
-- posted by Kirk
» Q_out - Chinese Walls
Many of the brokerage firms that also did investment banking (or investment banking firms that also did brokerage) set up "Chinese Walls" to avoid a conflict of interest.Perhaps they had you thinking about the Great Wall of China that protected the country for centuries from invaders.
<img src="http://www.chinavista.com/travel/greatwa..." width=400 height=296>
But another type of "Chinese Wall" is much easier to install in modern office buildings.
<img src=http://pics.rubylane.com/graphics/shops/..." width=422 height=593>
It just doesn't offer the same level of protection.
<img src="/files/mysites/qout/bhoestarts.gif" width=53 height=34 align="left">
Q_out
DISCLAIMER: My words and observations are general in nature, and are not meant as specific investment advice. Individuals should consult with their own advisors for specific investment advice.
-- posted by Q_out
» Q_out - Former Dynergy Controller Sues for Severance
Former Dynergy Controller Bradley Farnsworth claims that he was asked to "shave" forward gas prices in 2000 to improve third quarter earnings. After refusing and requesting a transfer, he was reassigned and eventually fired, he alleges to the Texas court. Now he claims Dynegy has failed to make termination payments.http://biz.yahoo.com/ft/020804/102818549...
<img src="/files/mysites/qout/bhoestarts.gif" width=53 height=34 align="left">
Q_out
DISCLAIMER: My words and observations are general in nature, and are not meant as specific investment advice. Individuals should consult with their own advisors for specific investment advice.
-- posted by Q_out
» Jen_ - Re: IMCL & Sam Waksal
More on the IMCL debacle from 8/8 New York Times....Ex-Drug Executive Faces U.S. Charges of Insider Trading
By ANDREW POLLACK
Samuel D. Waksal, the former chief executive of ImClone Systems, was indicted yesterday on charges of insider trading, bank fraud, forging a signature and destroying records to obstruct a federal investigation.
The indictment, unsealed in Federal District Court in Manhattan and announced by the United States attorney's office, contained new charges that had not been made when Dr. Waksal was arrested in June. One of those accuses Dr. Waksal of defrauding Bank of America by pledging ImClone securities he no longer owned as collateral for $44 million in loans. When the bank asked for proof that he still owned the securities, Dr. Waksal provided a false document on which he had forged the signature of ImClone's general counsel, according to the indictment.
The other new charge is obstruction of justice. After the Securities and Exchange Commission began investigating possible insider trading of ImClone shares early this year, the indictment says, Dr. Waksal ordered another person to destroy some records kept at ImClone, including those pertaining to offshore accounts he might have used to hide assets and computer files containing his telephone messages.
If convicted, Dr. Waksal faces millions of dollars in fines and many years in prison, including up to 30 years for the bank fraud charge alone. Lawyers not directly involved in the case said the new charges would make it harder for Dr. Waksal to defend himself against the insider-trading charges because they raise new questions about his honesty.
A lawyer for Dr. Waksal, Mark Pomerantz, called the indictment a "painful chapter" in his client's life and added, "Like all Americans, he is presumed to be innocent, and he will respond to those charges as required."
The issuance of the indictment indicated that talks held over the last few weeks aimed at reaching a plea agreement had so far been unsuccessful. But lawyers said the talks could continue and the filing of the indictment might have been a maneuver by the Manhattan prosecutors to increase pressure on Dr. Waksal to reach an agreement.
The indictment is the latest chapter in one of the several white-collar crime cases that is embroiling the business world, with former executives of Tyco International, Adelphia Communications and WorldCom also facing various criminal charges.
Other people might yet face charges for trading in ImClone stock, like Dr. Waksal's father and daughter, whom Dr. Waksal is accused of tipping off to sell their ImClone shares soon before the company announced damaging news that sent its shares tumbling. ImClone itself has been told by the Securities and Exchange Commission that it might face civil charges for misleading investors.
Martha Stewart, a friend of Dr. Waksal, is also being investigated for having sold all her ImClone shares on the same day as Dr. Waksal's father and daughter. Her lawyer, Robert G. Morvillo, declined to comment on Dr. Waksal's indictment, saying in a statement, "It is totally inappropriate to comment as the Waksal case is totally unrelated to the matter involving Martha Stewart."
Dr. Waksal, 54, founded and ran ImClone, a New York biotechnology firm, until he abruptly resigned in May when the company learned that federal charges were imminent. Dr. Waksal was also active in New York social circles, known for his spacious loft in SoHo filled with expensive modern art, lavish parties and friendships with entertainers, politicians and other celebrities.
The indictment said that at the end of last year, Dr. Waksal was $75 million in debt, with $50 million of that secured by his ImClone stock.
Last December, ImClone seemed on the brink of success with its first drug, Erbitux, which was awaiting Food and Drug Administration approval as a treatment for colorectal cancer. But, according to the indictment, Dr. Waksal learned on Dec. 26 that the F.D.A. was on the verge of refusing to accept ImClone's application for the drug's approval.
According to the indictment, he immediately tipped off two people to sell more than $10 million of ImClone stock in the next two days before the news was announced. The two are not named, but others have identified them as Dr. Waksal's father, Jack Waksal, who sold more than $8 million of shares, and his daughter Aliza, who sold $2.5 million of shares. The indictment also charges Dr. Waksal with trying to sell about $4.9 million in shares by first transferring them to his daughter's account in an unsuccessful effort to circumvent a ban on trading by company insiders that was in place because the F.D.A. decision was imminent.
The indictment said that three weeks after selling his shares and avoiding losses of $1.9 million, the person the others have identified as Dr. Waksal's father wired $2.85 million to an account in Dr. Waksal's name.
Dr. Waksal, 54, was arrested in his SoHo loft early on the morning of June 12 on insider trading and other charges, but was not indicted at the time. The government had 30 days to formally indict him or present evidence at a hearing, but it received two two-week extensions to negotiate a plea agreement. The second extension was to expire tomorrow.
In his plea negotiations, Dr. Waksal, who has been free on $10 million bail, had been seeking to spare his father and daughter from criminal prosecution, or at least from serving time in prison, according to people close to the situation.
But the government had not been willing to let the family members off the hook and had been seeking a prison sentence of 7 to 10 years for Dr. Waksal, which he regarded as too harsh.
The father and daughter have not been charged, but the indictment accuses the two people tipped off by Dr. Waksal of conspiring with him and of lying under oath to the S.E.C. That could indicate why the government was not willing to let them off the hook.
Charles Stillman, a lawyer for Jack Waksal, said he had not seen the indictment and could not comment. He said that "as a father, Jack Waksal's only concern now is for the well-being of his son." Aliza Waksal's lawyer declined to comment.
Both Mr. Stillman's statement and the one issued by Mr. Pomerantz, the lawyer for Dr. Waksal, called attention to Dr. Waksal's efforts to develop a cancer cure.
Regarding the new charge of bank fraud, the indictment says that in April 1999, Dr. Waksal pledged the same collateral — warrants to buy ImClone shares — as collateral for two separate lines of credit, one from Bank of America and the other from Refco Capital Markets. Neither lender was told that the collateral was already pledged to the other.
The indictment says that in summer 2000 Dr. Waksal exercised the warrants, thus rendering them worthless, but that he did not disclose this to either lender. In August 2000, when Bank of America requested evidence that the warrants remained valid, Dr. Waksal forged the signature of ImClone's general counsel on a false document, the indictment says.
....Sleazier & Sleazier!....Jen
-- posted by Jen_
» Kirk - Re: Re: IMCL & Sam Waksal
In response to message posted by Jen_:Waksal has to spend a Loooooooooong time in a REAL Jail for this.
The greed of those with large amounts of money to begin with is just sickening and this guy CLEARLY knew what he was doing was illegal.
His Father, his daughter and Martha should be thrown in the slammer too until they provide states evidence... and only the first to give testiomony to close the case should get any plea bargains.
Martha reminds me of Nixon here... She could have come clean at first as we often have sympathy for a "tipee" but as a CEO she has to know the laws against insider trading... so she, like Nixon, chose to try to cover up rather than take her lumps and admit a mistake was made.
-- posted by Kirk
» Kirk - Martha Stewart Update
.
7:29AM Martha Stewart: broker claims assistant tipped off Stewart-- FT (MSO) 6.99: The Financial Times reports that Martha Stewart's broker, Peter Bacanovic, claims his assistant passed inappropriate information to her about insider sales in IMCL without his knowledge; Bacanovic also believes that the assistant fabricated claims that he passed on the information under Bacanovic's orders to spare himself from possible charges.
http://finance.yahoo.com/mp#mso
<img src=http://cbs.marketwatch.com/charts/int-ad... width=452 height=366>
-- posted by Kirk
» Jen_ - Re: Martha Stewart Update
In response to message posted by Kirk:Ha - Bacanovic is trying to make his assistant the fall guy whereas the assistant has already been given immunity in return for his testimony against Bacanovic & Stewart.....the truth will out. Oh what a tangled web and I'm sure that it's only been partially deciphered....still waiting to hear the FDA's involvement in all of this.....IMHO they are not an innocent party....btwdik.....Jen
-- posted by Jen_
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