I recently had a long conversation with a merchant banker who requested information about a certain company. He was told that their business practices are unethical, bordering on fraudulent. An example was given, and he suggested that next time he had the opportunity, he would speak with the Chairman in confidence about it. He was immediately informed that not only did the Chairman know about these practices, but that he blessed them.
We are discussing a publicly traded company, on the verge of a major stock play. Certain members of the executive team stand to walk away with tens of millions …..
The will to bank millions was too great and he lined his pockets, knowing full-well that there were many small shareholders who would be losing out. Sarbanes Oxley and Bill 198 were passed to stop these practices…but unfortunately there are too few to risk blowing the whistle and not capitalizing personally.
It will be a very frightening day when the pendulum starts to swing in the other direction, and the minor shareholders decide that they are ‘not going to take it anymore’
