AKA, "CRONY CAPITALISM"
Adam Smith's insight into human nature is once again proven to be accurate:
US options scandal spreads to money manager
Mon Oct 16, 2006 6:41pm ET
REUTERS
BOSTON, Oct 16 (Reuters) - Money manager William Spears broke no rules by sitting on insurer UnitedHealth Group's board. But by quietly investing millions for the man he was supervising, he broke fresh ground in a new corporate scandal.
UnitedHealth Group Inc (UNH.N: Quote, Profile, Research) forced Spears, a New York-based money manager who had served on the insurer's board since 1991, and William McGuire who was promoted to chief executive in 1991 to resign on Sunday.
A law firm found evidence that options granted to McGuire when he renegotiated his contract in 1999 and when Spears headed the board's compensation committee were backdated, giving the former CEO the biggest profit possible.
...Spears, 67, had managed as much as $55 million of McGuire's personal fortune, served as a trustee on two trusts to benefit the former CEO's children and accepted a $500,000 investment from McGuire when he launched his own firm, Spears Grisanti & Brown in 1999.
Monday, October 16, 2006
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