|StockGate: Cox Asked To Resign; Cramer Appears To Sell Stock After Subpoena; Rocker, Gradient Lose Round In Court / FinancialWire® |
March 2, 2006 (FinancialWire) (By Gayle Essary) Another day, another onrush of developments in the manipulative trading scandal known as StockGate. First, as voters in the Investrend Poll at investrendinformation.com continue to suggest U.S. Securities and Exchange Commission Chair Christopher Cox should be rebuked for suggesting subpoenas for James Cramer of TheStreet.com
March 2, 2006 (FinancialWire) (By Gayle Essary) Another day, another onrush of developments in the manipulative trading scandal known as StockGate. First, as voters in the Investrend Poll at investrendinformation.com continue to suggest U.S. Securities and Exchange Commission Chair Christopher Cox should be rebuked for suggesting subpoenas for James Cramer of TheStreet.com (NASDAQ: TSCM) and a commentator on General Electric?s (NYSE: GE) CNBC, Carol Remond and Herb Greenberg of Dow Jones (NYSE: DJ) should be shelved, the Houston Chronicle said Cox ?should resign.?
Also, Overstock (NASDAQ: OSTK), whose CEO, Patrick Byrne, is now the alleged ?conspirator? in all the enforcement and regulatory actions, won round one against Rocker Partners and Gradient Analytics, when their squash motion was summarily denied by a judge who all but termed it frivoulous.
The Houston Chronicle article, which asked if Cox is ?inept, spineless or a political hack,? is at chron.com
(FinancialWire, whose publisher, Gayle Essary, wrote a satirical piece yesterday condemning Cox for his actions in this instance, otherwise finds redeeming value in Cox, who appears to be a line of defense against those that would impose taxes on America?s smallest companies and their shareholders, via onerous portions of Sarbox 404.. We believe the Commissioner, coming off surgery, simply overreacted to intense media pressure, not knowing the extent of public distaste for his actions. Thus, FinancialWire is predisposed to opposing the Chronicle, itself doing a little knee-jerking, and we are suggesting if Cox reverses his stand and supports his top enforcement official, resignation talk should cease. The Commissioner?s office is not a one-issue office, and performances should be judged on overall merit, not a single mistake. ? this is a FinancialWire editorial opinion, and not necessarily that of its publisher, Investrend Information.).
Meanwhile a Marin County, California judge ruled that Gradient?s research on Overstock.com is not protected free speech, and Overstock.com is now allowed to go to discovery against Gradient and Rocker Partners. Overstock.com CEO Patrick Byrne said anything he finds will be shared with regulators who have subpoenaed those two firms in a related investigation.
Both Cramer and TheStreet.com were also subpoenaed by the SEC, and since it is believed the subpoena arrived February 6 but not disclosed until he did so on Mad Money on CNBC on February 27, the 12 insider stock sales and option exercises that occurred in the interim resulting in proceeds of over $1 million has raised some eyebrows throughout the financial community.
The transactions are listed at biz.yahoo.com
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