SEC: Gary Winnick to go without slap on wrist

A personal pet peeve of mine. These true criminals of the corporate scandals, Bernie Ebbers, Ken Lay, Andrew Fastow, and most of all, Gary Winnick, do not go to jail, or even incur financial penalties for literally, intentionally defrauding shareholders and investors of billions of dollars. ...however Martha is in jail for admitting she lied while not under oath to an investigator. Remember that, Martha was not convicted of any corporate wrongdoing. She admitted to an investigator that she lied to him about deleting an email while not under oath.

So Winnick. Global Crossing. The multi-billion dollar trans-pacific fiber cable. They knew they were never going to be able to recoup the costs for construction through revenue bearing operations. So what did they do? Created a business plan for their Jamaican company whereby transferring all assets to holding companies (Asia global crossing, etc) and saddling the publicly traded company with all the outstanding debt and bonds and shares. Then he sold his shares in the burdened company, transferred his assets to Bermuda, Caymans, and other offshore havens, and then declared GX bankrupt, which brought the share price to 0. Along with that, they defaulted on all outstanding debt.

They KNEW THIS BEFORE THEY STARTED. The debt incurred was far larger than the revenue potential. So they took on debt knowing full well they would never repay it. He walked out with personally over $420 million from this deal (See USA Today Dec 19, 2002 -- library file, can't hyperlink, sorry).

AND THE SEC refuses to fine him $1 million for this. They can't even bring insider trading claims against him? Michael Miliken is rolling in his tether.

Wonder how much you need to contribute for that type of treatment? So did I ... but when I looked them up at OpenSecrets.org, I can't see how they funneled any money to the administration. They actually supported Feinstein and Kerry. Weird.

I can't understand how this can happen. Eliot Spitzer? Why don't you make a name for yourself by taking this fatcat down and leave Martha alone.