"If McAuliffe is called to testify, there are many questions he should be asked. Most importantly, on what basis did he decide to sell his shares of Global Crossing, pocketing an $18 million profit from a $100,000 investment shortly before the company's collapse? At the time he sold his shares, McAuliffe served on the board of directors of the now-bankrupt Telergy, a telecommunications company based in Syracuse, New York that "swapped capacity" with Global Crossing. Global Crossing made such swaps days before it was required to release quarterly earnings estimates in order to meet projections. It doesn't take an economist to realize that two profit-seeking companies making an arms-length transaction would only swap assets of equal value. To create the illusion that it was profitable and thereby deceive investors, Global Crossing inflated the value of what it received in such swaps. McAuliffe was on the board of Telergy when its swap with Global Crossing was executed. As The Washington Times reported on September 12, 2002, "Mr. McAuliffe sold his Global Crossing shares in the fall of 1999. In other words, Mr. McAuliffe reaped his huge Global Crossing profit during the quarter following the month that his firm, Telergy, helped to inflate Global Crossing's revenues - and, hence, its stock price." Of course, McAuliffe knew to cash out his shares right before the clock ran out on Global Crossing's funny money swaps."
Interesting...MUD