Universal Express, Inc. (OTC: USXP), a poster child of the naked short selling conspiracy theorists, is the gift that just keeps on giving for those of us who like to write about Wall Street's seedy underbelly.
Now in court facing SEC charges that he looted the company, former CEO Richard Altomare has been asked to return corporate money he used to buy $558,900 in jewelry, $30,000 in gambling markers, along with a $200,000 bonus.
Altomare decided to pull a Dick Grasso, claiming that the company's board had approved all the payments/bonuses.
But there's just one problem: Mr. Altomare was the only member of the company's board, so the argument is a little bit circular.
According to the South Florida Business Journal, Judge Gerard Lynch told Altomare that if he doesn't cooperate he should "bring his toothbrush" next time. Oh snap!
For more on this bizarre case, visit Gary Weiss' blog.
Reader Comments (Page 1 of 1)
1-31-2008 @ 9:29AM
shawn said...
i dont understand why folks say naked short selling is a conspiracy theory when there is ample evidence supporting its existence.
maybe naked short selling is a misnomer.
fails to deliver might be a better term.
mind you there should never be a ftd.
that is if our capital markets are ethical and moral.
which i say it is not.
in any case there are a multitude of investigations
on going and begining. someone somewhere in the midst of all the investigations will have a conscience and spill the beans, i am sure the first
to do so will get the better plea bargains in a court of law.
2-05-2008 @ 9:05PM
R. B said...
In this case, naked short selling is not the issue, the CEO of Universal got caught with his hand in the cookie jar. He is naked and trying to use the issue of naked short selling to cover up his crime. Universal was his personal piggy bank. He is a criminal in my mind. After reading the Receiver report, and his disposition where he refused to answer the questions of where the money went by pleading the 5th, I am convince that this man is hiding the truth. He should go to prison for a very long time. I purchased shares offered by his company and now it is nearly impossible to sell them for even a fraction of their original value. He lived the high life and now it's time to payback what he stole.
2-09-2008 @ 8:22PM
Jim Basten said...
Several more articles on Richard Altomare and the crimes he committed while at Universal Express can found at Brad Rinehart's blog: http://brad-rinehart.blogspot.com/
Altomare's claim regarding naked shorting is totally unfounded. The man diluted his company's stock by dumping billions of illegally registered shares into the market.
2-09-2008 @ 8:26PM
Jim Basten said...
Several more articles on Richard Altomare and the crimes he committed while at Universal Express can found at Brad Rinehart's blog: http://brad-rinehart.blogspot.com/
Altomare's claim regarding naked shorting is totally unfounded. The man diluted his company's stock by dumping billions of illegally registered shares into the market.