Posted on 02/23/2005 2:44:15 PM PST by mdittmar
President Bush's uncle made more than $450,000 last month by selling stock in a defense contractor whose profits are growing because of the Iraq war, records show.
William H.T. Bush made the money by exercising stock options in St. Louis-based Engineered Support Systems, Inc. Bush is a member of ESSI's board of directors and therefore had to report the sale to the Securities and Exchange Commission.
Bush, the youngest brother of former President George H.W. Bush, did not return a telephone message seeking comment Wednesday afternoon. He told the Los Angeles Times, which first reported the stock sale Wednesday, that he had not pulled any strings in Washington for the company.
ESSI on Tuesday reported record income of $20.6 million for the three months ending Jan. 31, a 31 percent increase. The company said the expansion came mainly from increases in ESSI's military contracts. Those include adding armor to military trucks, refurbishing trailers the Army uses to haul tanks, and supporting satellite communications for troops in war zones, ESSI CEO Gerald Potthoff said in a statement.
Bush cashed in stock options on Jan. 20, weeks before the company's latest earnings report. SEC documents show he sold 8,438 shares of ESSI stock at a profit of $53.36 a share. That's a total profit of $450,251.68.
Bush wasn't the only ESSI official to cash in on the company's rising stock price. Five other officers or directors of the company have sold stock so far this year, SEC records show, with two of them profiting less than Bush and three making more. The biggest windfall went to Gary C. Gerhardt, the company's vice chairman and chief financial officer, who made nearly $7.5 million from selling stock on Jan. 31.
The Pentagon's inspector general is investigating whether an ESSI subsidiary improperly got a contract to make equipment from the Air Force. That contract was overseen by Darleen Druyun, a former Air Force contracting official serving a nine-month prison term for contract fraud involving Boeing.
Meanwhile, Bill Clinton's brother woke up in a puddle of his own vomit and stole fifty bucks from the guy still sleeping next to him.
What Matt Kelley of the AP doesn't tell you is that his own portfolio jumped $50K in the last 6 months.
(tin foil hat) That's it! That's why Bush got us into this billion dollar war--so his uncle could make $450,000! It all makes sense now! (/tin foil hat)
I predict this will cost Bush the election! Kerry is going to be the president.
Oh good God, the media is just pathological. Bush is the first scandal-free president in decades, so the AP has to go and invent one. Has ANY OTHER PRESIDENT'S UNCLE AND WHAT HE DID BEEN NEWS EVER????? Yeah, Bush's uncle cashed in on stock. IMPEACH NOW! Why doesn't the media just give up the pretense already and put the DNC symbol on all their "news" releases?? Give it up already guys, this is getting embarrassing.
Don't directors and officers of the companies have to get a legal approval for exercising options (time windows etc.)?
Looks like you nailed it. ; )
$450K is nothing compared to the $18M payday Terry McAwful received from a sweetheart Global Crossing stock sale, before it went down the toilet with it's employees' 401(k) savings and dreams. At least ESSI is still in business employing people and doing some good for the DOD.
Damn. I wish I had bought that stock!
they just have to file and can only exercise so much, just like selling stock, they have limits though I forgot how much.......but once the option is in the money, they can sell any and all of it because it has an expiration date unlike common stock
isn't it customary for family's of Republican Presidents to become destitute and homeless as soon as a member is elected?
plus didn't Hitlery turn $1,000 into $100,000 in cattle futures.......hell, I'm an Investment Broker and I don't get tips like that......that was totally an inside job
Wow! Almost as good as making $ 100,000 in 24 hours in cattle futures, huh, you DU morons?
No it wasn't! Inside jobs are for evil Republicans. Democrats are simply lucky - especially the really important Democrats.
It's evil for anyone to make money. (/sarcasm)
I might be wrong, but I thought that there are time windows (around quarterly statements, or other "material events") when they are prohibited from trading, as they are assumed to be in early, pre-market possession of inside information - and thus might need clearance.
HAHAHAHA!! I almost created my own puddle after reading that, THANKS!
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