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by thrill
1935 days ago
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A handful of the largest investors knew me virtually and colluded behind my back, err, had a conference phone call among themselves, and sent the judge faxes asking him to appoint me. I had taken a board seat to figure out what was going on when the price was not reflecting buys properly at the request of the largest shareholder who lived in Europe. I though I'd get a good education about things - I guess I did, but it was OJT. Anyway, during my first board meeting the CEO figured out I wasn't going to ignore what I thought were financial discrepancies and during lunch skipped off to Mexico with the literal suitcase full of cash. When I started looking for him, his secretary told me what he'd done, with some consternation. I held the board meeting anyway, and by chance the company attorney, who was an SEC specialist, knew an SEC investigator well enough to get me a meeting the next morning. They got me in front of a judge that afternoon (never seen a court move so quickly since). I'd told the largest shareholder what was going on and he'd contacted the others and had the appointment surprise waiting for me. A lot of people lost a lot of money when all was done, including me with a total loss as I spent my own money and time for a year on travel to find yachts and houses bought with corporate fund, and at the end with me able to recover less than 10%. A ridiculous amount went to the bankruptcy attorney to put it all to bed. |
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Because I was young and stupid and once I'd accepted the board seat I refused to quit just because I'd go broke. I eventually (after a couple of years) got my expenses back, but not my time or stock losses.
Edit: I haven't thought about this in awhile, so some things popped back, and this part sounds a little emotion-seeking. After I put out a press release about me taking the CEO position and the situation, I got a phone call from what was obviously a very old lady with difficulty speaking. She told me how her broker had encouraged her to invest in the stock, and that it was all she had. I was able to get the SEC to give me a printout (on wide perforated line printer paper, for those that remember that era), and there her name was, with near a million dollars lost. I felt really bad for her, and I had energy and an overprotective nature not yet beaten out of me at that point. Hence the adventure, but with minimal success, other than the jail time for the former CEO. I did get a nice piece of blown glass artwork as a "thank you for the effort" that I quite treasure from an artist famous at the time for making White House Christmas decorations - it sits in my home office.