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 FBI, the Congress, maybe even {{{shudder}}} the taxman.