Posted on 02/19/2005 2:04:50 AM PST by Liz
The SEC has launched an insider-trading probe of shock jock Howard Stern's deal to join Sirius Satellite Radio.
In the two weeks running up to the blockbuster announcement last October, Sirius stock soared nearly 40 percent........the feds want to determine if someone who knew the deal was coming started buying up stock in anticipation of shares skyrocketing when the news got out.
When Sirius made the surprise announcement, the stock jumped another 15 percent.
Yesterday, New York gossip journalist Chaunce Hayden, a frequent guest on the Stern show, received a subpoena from the SEC.
He was told he needs to appear before the SEC on Wednesday to answer questions about what he heard in Stern's studio around the time of the Oct. 6 announcement that Stern was leaving free radio for Sirius.
The subpoena is seeking information about "trading in securities of Sirius Satellite Radio," according to a copy obtained by The Post.
Stern, extremely frustrated by an ongoing battle with the FCC over his show's content, was lured to Sirius with a five-year, $500 million package for him and his team. It's unclear exactly what Stern's cut of that is, but he currently earns some $31 million a year, Forbes has estimated, and the Sirius deal is believed to top that.
The deal was hailed by some at the time as one of the most important in media history because it instantly legitimized the upstart satellite radio industry.
However, Stern has used his show to constantly plug Sirius, infuriating Infinity bosses and spurring speculation he may leave and join Sirius earlier than planned.
Sirius followed the Stern announcement in November by naming former Viacom honcho Mel Karmazin as its CEO.
Shares of Sirius initially shot up about 20 percent at the time of the Karmazin announcement.
(Excerpt) Read more at nypost.com ...
The I-man's "charity" fraud is a lot bigger than this.
Stern: the section of the good ship Howie that will get torpedoed in prison...
Howard Stern wasn't served with a subpoena. One of his frequent guests was.
Crime is an equal opportunity profession. If they could put Martha in the slammer, why not Howard?
It couldn't hurt....
Are CBS and Viacom the same company?
This is correct. And the guest is already being grilled by the IRS for never paying taxes. The SEC has a lot of leverage against him. I believe this is a fishing expedition; whether it garners any fish remains to be seen. I find it hard to believe that Stern would be so stupid or careless. If anything, he's a very bright guy with an obsessive personality. He'd be too scared to cheat.
We will see if Stern let on to his buddies of his move so they could buy the stock ahead of time. This is where they will nail his butt!
That's right. Stern hasn't murdered anyone.
I agree. And Stern should pay if guilty. What peeves me as an individual small investor is the 'After Hours Trading' market. Unless you are playing with the big boys, it's a bitch to wake up and realize that yesterday's closing price is not today's open after you put in a buy order that gets executed at a premium to your pocket. I think the after hour trading is worse then insider trading. IMHO
If the powers to be made it a crime to offer a lower amount for a stock than someone paid for it, everyone would make money, and this would be good for the market, would it not?
I just do not see the victim here, day traders sold early, for an amount they wanted, long term investors were rewarded.
Really? What crime has the I-Man committed?
Ok. Here goes.
Let's say Sirius stock was 'marginal' or slightly down, and you have invested in 1000 shares.
And I, at the same time have the same number of shares invested and am advised by my broker to sell 'before it bottoms out' or I lose too much money.
Since you are a day trader and the 'bottom line' is what is in your best interest, then you may be persuaded to 'sell' to invest in another company also.
But what if you had 'inside' information that the stock was going to go up, and go up dramatically?
You hold your stock until the boost and suddenly you're rich.
I, on the other hand sold my stock because I was not privy to the same information. (fair trade)
So,(hypothetically) I 'lost' a percentage of the money invested by selling, and you made a 'windfall profit' on my loss.
Now this might not seem like such a big thing, but if my 'shares' were part of my retirement investment, then I could end up being a big looser on just a small loss.
Now you might not see any 'unfairness' about insider trading, but I sure would.
Now this might not seem like such a big thing, but if my 'shares' were part of my retirement investment, then I could end up being a big looser on just a small loss.
Aside from day trading with your retirement funds, if you invest in someone else's company, there is always a risk of not being close to the action. If you do so you should be aware that they are more interested in their return than yours, it just goes with the territory and the risk you want to assume.
Running a fraudulent 501c3, for one thing.
It's a swank vacation spot for Imus and his wife, and a place to park his neer-do-well relatives.
Check out the Architectural Digest spread. That's not how you run a charity.
"Howard Stern is an idiot at best. But do you think tossing him in jail will solve the ills in this country? Jailing Ted Kennedy would be a better start"
CAN'T THEY DO BOTH!!!!
When was he charged? I must have missed that.
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