Financial Felons: Where are they now and is there a next generation coming?

Posted Nov 25th 2008 2:40PM by Trey Thoelcke
Filed under: Rumors, Law, Scandals

We recently presented a look at some of the most notorious financial felons of contemporary times.

Since then, news has included the indictment of Mark Cuban for insider trading in a case that is somewhat reminiscent of Martha Stewart's case. According to the SEC, the billionaire entrepreneur asked his broker to sell all his shares of Mamma.com after the company's CEO confidentially told him of an impending stock offering that would dilute the value of all existing shares. By selling before the information became public, Cuban is said to have sidestepped losses of more than $750,000. Cuban insists, though, that no agreement existed to keep the information confidential.

And then there was the indictment in Texas of Vice President Dick Cheney, along with former U.S. Attorney General Alberto Gonzales and others. There seems to be a conflict of interest between the vice president's influence on the federal agency that oversees federal immigration detention centers and his substantial holdings in Vanguard Group, which invests in private prison companies. But does the lame-duck county district attorney, who was a no-show in court, have the authority to bring charges against federal officials with regard to federally run institutions?

We also saw the farewell of Senator Ted Stevens of Alaska, one of the senate's longest-serving members. He lost his bid for a seventh term after being convicted in federal court for lying on financial disclosure forms about gifts he'd received. Stevens is appealing his convictions, and, like Mark Cuban (and so many others), says he looks forward to clearing his name.

These stories, as well as the constant barrage of bad news and speculation arising from the financial crisis, just serve to remind us that there is no shortage of financial felony and greed. But are Cuban and Cheney (if convicted) and Stevens even in the same league as the 17 financial felons, and one alleged felon, we recently featured? Have a look again and then let us know in the poll below who you think stands out among these financial felons.

Jack Abramoff, lobbyist
Boris Berezovsky, Russian oligarch
Ivan Boesky, corporate raider
Bernard Ebbers, Worldcom founder
Andrew Fastow, Enron CFO
Charles Keating, S&L scandal
Dennis Kozlowski, Tyco International CEO
Ken Lay, Enron chairman
Nick Leeson, rogue trader
Michael Milken, junk bonds
Barry Minkow, fraud
Joseph Nacchio, Qwest Communications CEO
Lou Pearlman, Ponzi scheme
John Rigas, Adelphia founder
Jeffrey Skilling, Enron CEO
George Soros, insider trading
Martha Stewart, insider trading
Mark Whitacre, ADM whistleblower

Who is the worst of these financial felons?
Ivan Boesky	1 (2.9%)
Charles Keating	4 (11.4%)
Ken Lay	13 (37.1%)
Nick Leeson	1 (2.9%)
Michael Milken	3 (8.6%)
Lou Pearlman	2 (5.7%)
Jeff Skilling	6 (17.1%)
Martha Stewart	1 (2.9%)
Someone else (specify in comments)	4 (11.4%)

Also feel free to let us know in the comments about any prominent financial felons we've overlooked. And tell us in the poll below from where you think the next financial felons will or should come.

From where will the next financial felons come?
Fannie Mae, Freddie Mac, subprime mortgage lenders	11 (35.5%)
Failed banks such as Bear Stearns and Lehman Brothers	3 (9.7%)
The Big Three U.S. automakers	2 (6.5%)
The multinational oil companies	1 (3.2%)
Labor unions	2 (6.5%)
Congress	2 (6.5%)
Federal Reserve and/or U.S. Treasury	4 (12.9%)
Insurance/healthcare/pharmaceutical industries	4 (12.9%)
Somewhere else (specify in comments)	2 (6.5%)