Matthew Holt

McGuire not in prison. Reyes is. Anyone understand?

So Bill McGuire has settled with CALPers in the scandal where he backdated the value of his United HealthGroup stock options. He’ll pay a $30m fine which sounds a lot but is a rounding error on his net worth. So it appears that his troubles are over.

Meanwhile Gregory Reyes the CEO of Brocade did exactly the same thing and he’s doing 21 months in the big house as well as paying a similarly big fine.

For that matter Steve Jobs apparently did the same thing too, and just today Apple settled with the SEC for a mere $14 million (or about 8 minutes of iPhone sales) and Jobs himself doesn’t seem to be paying anything.

Isn’t there something about equal treatment under the law in one of those fuddy-duddy 18th century documents we Americans are so keen on? Can anyone explain the rationale behind these differences in treatment?

18 replies »

  1. far be it from me to stray off topic, but in the interest of clarity – is it Frank, or is it Russell?

  2. So Frank, given what you do for a day job, can you explain why Reyes is in jail and McGuire and Jobs are not?

    I’m a consultant, like you. You got any money? Like the Biden kid’s law firm — I’m not running a charity.
    Post the answer. I’ll also need a signed contract and a credit card number.

  3. “Hillary’s deal is small potatoes in the universe of potential ill gotten gains.”
    OK. One more time —
    “My crooks are just as crooked as my opponent’s.”
    What a great claim. Something to really be proud of.
    Be sure to tell the kids.
    What is common in crooks — Democrat, Republican or otherwise: they all have excuses and enablers.
    Cry me a freakin’ river — I catch you stealing, you’re F’d.

  4. Frank: you have a big job my friend. Lets talk about a level playing field with you in the bully pulpit as chief enforcer. I say you will have job security my friend. Lets start with cronyism, then talk about self serving corporate welfare, insider trading, and that all-to-cozy relationship between the fox and the hen house aka Wall Street and K street. I mean, let’s get real.
    100 to 1 gains are common place with all too often zero transparency, and exceptions for the big dogs while the little guy gets hit with the “rule of law” theater and show trials.
    Money corrupts politicians, period and per se, end of argument (both Republican and Democrat). Yes, crooks are on both sides of the aisle; yet, lets not get too self righteous about your ideologically cloaked outrage.
    If you want to create equity, lets start tying executive compensation to performance; create firewalls between the board compensation committees and CEOs; only recently have we insisted in “firewalls” between so call objective analysts and their investment banking underwriters. That’s before throwing self dealing by “Big Six” accounting firms and their objective “consultant divisions”. How much wealth building fair play were these incestuous relationships party to? What about their legal cohorts? I little too intimate perhaps?
    Come on? The game has been and is rigged as long as their is a market for and institutional tolerance of corruption, that’s what we’ll get.
    Hillary’s deal is small potatoes in the universe of potential ill gotten gains.

  5. ” .. of course we all now know how apolitical Bush USA’s appointees were under the Gonzalez reign ..”
    Of course. That justifies a 100-1 return in nine months.
    In a pig’s eye. (Without lipstick.)
    Your crooks are just as crooked as your opponent’s. What a great claim. Something to really be proud of. Be sure to tell the kids.

  6. Frank:
    Your vitality is impressive, if not exhausting…..of course we all now know how apolitical Bush USA’s appointees were under the Gonzalez reign. Decades of impartiality and career over ideology sensibilities were eviscerated, and a once revered institution, the DOJ, is now somewhat credibility challenged.
    Meanwhile, Hilliary did more to elevate the health reform debate than any one in the 90’s. While actual debate of pro-reform models were trounced by sound byte Harry and Louise “echolalia”, the failing health care system and its reform imperatives where merely kicked down the field only to resurface in 2008. Go figure?

  7. Well Frank, I guess the Clintons get a freebee and Bush gets a freebee on Harken Energy. Not enough evidence in each.

  8. What I know about the Clintons:
    In over 25 years reviewing financial documents, including the “Fortune 500,” I’ve never seen a return on investment as high as Hilary’s gain in cattle futures.
    Never.
    I would never trust the Clintons with a penny of taxpayer funds. Not one penny.

  9. Frank, then as a litigator you know there was not enough evidence to charge the Clintons.

  10. Dear Clinton apologist: get a grip. If you have evidence that Judge Starr attempted to encourage perjury, as you suggest — bring it on. That’s a five-year felony.

    Peter Pud: I’m a civil litigator. I investigate Democrats and Republcans — and jailed both. I know what it takes to convict.
    Someone has something — I tell, let’s go, the govt. pays for informants with SOLID info.
    If they don’t — I tell them to quit wasting everyone’s time and being a pinhead.

  11. ” .. But she stood up to Ken Star (sic) and his Grand Inquisitors and would not lie for them ..”
    Dear Clinton apologist: get a grip. If you have evidence that Judge Starr attempted to encourage perjury, as you suggest — bring it on. That’s a five-year felony.
    I’d bet $100 you can’t. People like you find facts and the law difficult to comprehend. Pity.
    Facts is so hard. Boo, hoo, hoo.

  12. I can still remember the “perp” walk of Susan McDougal of Whitewater fame paraded out in full ankle/wrist/waist chains like she was Hannibal Lector. But she stood up to Ken Star and his Grand Inquisitors and would not lie for them. It sure seems to be about friends in high places.

  13. Gregg-I think it’s the latter. Thanks for the post, this is another exmaple of the injustices in our legal system-keep us updated.

  14. Perhaps “perp walks” and the rule of law are discretionary based on domiciled political appointees, their mood, or other predilection to “send a message” to the market.
    Or, it could be much more conspiratorial in nature and tied to political donations and who bought what influence?

  15. Ah, you read my mind and the very sentiment I said to my (also M.D.) husband this morning. We are ashamed that he shares our M.D. degree; he has done everything to dishonor it. If the profession had any guts he should be “disbarred.”