While the whole world is obsessing over a new bubble of sorts, and the titanic tussle for wireless domination, the Securities and Exchange Commission is letting the architect of Global “Double” Crossing, Gary Winnick go scot free. SEC has decided Winnick should not be fined for his crimes even though SEC’s own enforcement division had disgustingly negotiated a fine of mere million dollars. This man, took out more than $700 million out of the company which he and his cronies ran into ground, and he is not guilty!
There was been nary a whisper in the mainstream media? David Isenberg sums it up best when he writes, “You might not have noticed. USA Today put it on page 3B. The Washington Post ran it on 2E. The Financial Times gave it three paragraphs.” Makes you wonder doesn’t it.
The SEC commissioners rationalized that Winnick was non-executive chairman. But he was the founder, the spokesman, and the largest shareholder. Want to build an air castle, sucker investors and get rich? Green light is on at the SEC.
SEC’s two Republican appointees — Paul Atkins and Cynthia Glassman — disagreed with the case against Winnick. They argued that the company did meet the SEC’s minimum disclosure requirements. The two Democratic appointees — Harvey Goldschmid and Roel Campos — supported the enforcement division’s recommendations.In the end, SEC Chairman William Donaldson, who has often aligned himself with the Democrats on rulemaking issues, ultimately voted with his fellow Republicans, scuttling the deal. Donaldson’s reasoning, according to two people in the meeting, was that as non-executive chairman, Winnick wasn’t obligated to sign off on disclosure decisions.
Winnick is pretty thrilled I assume. Washington Post adds.
Winnick’s lawyer, Gary P. Naftalis, said his client was “gratified” by the agency’s decision. “We always believed that the evidence demonstrated that Gary Winnick acted lawfully and properly in connection with Global Crossing,” Naftalis said in a prepared statement.
You know what it tells me – Bernie won’t be needing his Cabana shirts because he won’t be going to Club Fed. Doesn’t matter – next time you want to run a scam, make sure you steal billions, hire the best attorneys and line the pockets of enough politicians, and SEC will take care of you. How quick everyone was to judge Martha Stewart, and throw her in jail.
2 thoughts on “The Ultimate Double Crossing”
The telecom scandals cost me several jobs, and my career is still in shambles because of it. I guess I should have been CEO rather than an analyst…
nachio only took a few hundred million………..NOTHING like Double Crossing your OWN shareholders AND EMPLOYEES and getting away with it……….