Posted on 09/20/2002 2:30:45 AM PDT by Liz
Edited on 05/26/2004 5:08:51 PM PDT by Jim Robinson. [history]
As lawmakers prepare to grill Global Crossing and Qwest Communications execs next week, a handful of damaging e-mails seems to prove they used sham trades to boost profits. "I wish this company would just come clean with the Street regarding our guidance. This swap crap is going to kill us in the long run and I'm personally very fed up," wrote Global Crossing senior finance executive Joey Wong to colleagues last fall.
(Excerpt) Read more at nypost.com ...
"Winnick sold $734 million in stock before the company, which built a worldwide fiber-optic network, filed for bankruptcy protection in January. ...The committee, which has been investigating Global Crossing since February, has so far been frustrated in its efforts to interview Winnick about the transactions, Johnson said. Lawyers for Winnick are scheduled to meet with committee aides Tuesday to arrange an interview with the billionaire Beverly Hills executive and company founder, Johnson said. "We're going to give Mr. Winnick's attorneys one last chance to head off a subpoena," Johnson said. "He can either meet with our investigators voluntarily or raise his right hand before the committee."
Well...is Gary Winnick scheduled to testify?!
FReegards...MUD
Here's what I want to know: I'd like to know how McAwful got his initial $100 thou GX investment? Was he a fictitious employee of GX, listed on the payroll, but doing nothing for his "salary?" Or was the $100 thou an unsecured loan from GX? (SEC don't like stuff like that.)
Or did McAwful actually make an investment before cashing in?
The day after Global Crossing went bankrupt in January, McAwful dismissed criticisms by telling CNN that the firm's share price "continued to go way up after I sold my stock." Like he was unconcerned at the cash-out price.
Wait a sec.
What price did McAwful pay in 1997 (before GX's March 1999 2-for-1 split) when he made his original so-called investment of $100 thou?
If he sold at GX's split-adjusted peak share price of $128.50 — which he claims he did not — he would have paid 71 cents per share in 1997 in order to pocket a return amounting to 180-fold profit.
If he sold at substantially less than the split-adjusted peak price of $128.50 — as claimed — then he had to have purchased his shares in 1997 at substantially less than 71 cents each.
By golly, methinks this is another case for the SEC, the Congress, maybe even {{{shudder}}} the taxman.
Worked for Huang...but we gotta different Attorney General than we did back then...MUD
The Leftist rag "Mother Jones" said it was paid by Global Crossing as a consulting fee, and I've got the link somewhere on my Black threads. I'll bump you when I find it.
"Was he a fictitious employee of GX, listed on the payroll, but doing nothing for his "salary?" Or was the $100 thou an unsecured loan from GX? (SEC don't like stuff like that.)"
It wasn't an unsecured loan, from what I've been able to gather...but what the heck could McAwful offer as a "consultant" to a hi-tech firm like GX?!
"Or did McAwful actually make an investment before cashing in?"
It wasn't T-Mac's money that was invested.
"The day after Global Crossing went bankrupt in January, McAwful dismissed criticisms by telling CNN that the firm's share price "continued to go way up after I sold my stock." Like he was unconcerned at the cash-out price."
From Byron York's article in the 16 September 2002 issue of National Review...
"If an investor had been lucky enough to buy $100,000 worth of the stock at its lowest price and to sell at its highest price, the original investment would have grown to $803,125. That's a terrific profit, but nothing like what McAuliffe made [an estimated $18 Million]--especially when one considers that McAuliffe...sold his stock in the fall of 1999, when the stock was well below its peak. So how did he do it?!"
and...
"[They've determined that McAuliffe sold out his interest in Global Crossing in the Fall of 1999]..."Say McAuliffe sold on October 1, 1999. On that day, Global Crossing shares sold for $26.06. In order to make $18 Million, McAuliffe would have had to sell 690,714 shares. To have acquired that many shares from his original $100,000 investment, McAuliffe would have had to get the stock at a split adjusted price of a little less than 15 cents per share."
and...
"McAuliffe's closeness to Winnick [the two have been long-time business partners] and his well-timed investments suggest that McAuliffe might have enjoyed some of the benefits of insiderdom without its accompanying burdens (like having to file public notice when one buys or sells company stock)."
"By golly, methinks this is another case for the SEC, the Congress, maybe even {{{shudder}}} the taxman."
By golly, I think yer right...MUD
"In November 1990, McAuliffe pitched an investment proposal to a man named Jack Moore, who was a longtime official of the International Brotherhood of Electrical Workers. Moore ran the union's pension fund and had virtually unchallenged authority to choose where to invest it $6 Billion store of capital. He had met McAuliffe a couple of years earlier when both men were supporters of Democratic represntative Richard Gephardt's 1988 presidential campaign.
"McAuliffe wanted to create a partnership to buy a large block of commercial real estate in central Florida, including a shopping center and several apartment buildings. Moore agreed, and he and McAuliffe came up with an extraordinary arrangement. McAuliffe put up $100 for the purchase, and the pension fund put up $39 Million. Despite the enormous disparity in investment, the deal called for both sides to split the profits 50-50, after the union received a modest initial return.
"The next year, McAuliffe proposed another venture for the partnership. This time, he wanted to buy a parcel of land near the apartment complexes and divide it into more than 500 single-family lots. Instead of another lopsided purchase arrangement, the pension fund offered to lend McAuliffe up to $10 million to buy the property, which was known as Country Run. As collateral, McAuliffe put up the land itself, plus his 50 percent interest in the apartments/shopping center development.
"But not long afterward, McAuliffe got out of the first deal. In June 1992, the pension fund paid McAuliffe $450,000 for a portion of his 50 percent share. Then, in August 1993, the fund paid McAuliffe an additional $2 Million for most of the rest of his share. McAuliffe's total return was $2.45 Million on an original investment of $100."
Amazing--isn't it?!--how brazen McAuliffe is with his multitude of corruptions...MUD
HONESTY IS ONLY GUARANTEED WHEN THERE IS NO WAY TO GET AWAY WITH DISHONESTY. COMPLETE DISCLOSURE IS THE ONLY SOLUTION.
Excellent argument, CT. A close duplicate (with the last paragraph completely unmodified) could also apply to campaign finance reform.
But....but...but..what about Harken energy?
That was very interesting, I wonder what HE could have done with a grand in cattle futures???
T-Mac puts the HildaBeast to shame when it comes to shady investments...then again, the HildaBeast got an $8 Million advance fer a book she hasn't written yet and that nobody'll ever read once published!!
FReegards...MUD
In other words, Hillary!'s Senate run was going to be based on ill-gotten gains.
-PJ
I'll bet that she is the only one in this whole mess that will be coming out as a millionaire. His current wife, previously a waitress in a local Exeter NH watering hole, will have to go back putting on her apron.
Typo correction. Hillary!'s Senate run was based on ill-gotten gains.
-PJ
Saw it plus it was all over the news last night. Judge needs to decide whether her mills are the reults of her ex's ill-gotten gain and whether tainted money can be used for bail.
Shareholders suing the pants off Koslowski might consider whether her assets are attachable, as well.
FReegards...MUD
Oh, well, case closed. If MJ and GX said so it must be true {{{groan)))))).
LOL...actually, the MJ article was quite a condemnation of McAwful (I'll see if I can find it this evening)...apparently, the FarLeft ain't too pleased with Slick Willie's buttboy either.
FReegards...MUD
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