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George Walker Bush Insider Trading Timeline

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Q Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-03-04 07:37 PM
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George Walker Bush Insider Trading Timeline
Bush Insider Trading Timeline

George W. Bush and partners sell their failing Spectrum 7 Energy Corp. to Harken Energy Corp. Bush receives more than 200,000 shares of Harken stock and is made director and consultant to the company.

Harkens CEO, Mikel Faulkner, introduces Bush to an old business associate, David Halbert, who is raising seed money to start up Allied Home Pharmacy. Bush becomes one of 30 initial investors who put up a total of $250,000.

Harken sells a subsidiary, Aloha Petroleum, to International Marketing & Resources, a partnership of Harken insiders, through a seller-financed loan, but declares the profit in its annual report as a cash gain. This effectively masks big losses by the company that year.

At the beginning of the year, International Marketing & Resources in turn, sells Aloha to Halberts Advance Petroleum Marketing for no profit. Advance now must pay the Harken-financed loan.

On June 22, Bush sells his Harken stock at $4 a share, for a total of $848,560. He uses most of the proceeds to pay off a loan he had taken out the previous year to buy a partnership interest in the Texas Rangers for $600,000.

On Aug. 22, Harken files a second quarter report disclosing for the first time that it is hemorrhaging. Total losses for that quarter are $23.2 million. Stock plunges to $2.37 a share.

That fall the Securities and Exchange Commission discovers that Harken had effectively concealed earlier losses in its 1989 annual report, before Bush sold his stock, by claiming a capital gain on the Aloha sale even though it was financed through a loan. It directs Harken to recast its balance sheet for 1989.

On Feb. 5, Harken files an amended 1989 report, asserting that after discussions with the SEC about its method of accounting, it was recasting its losses for that year from a modest $3,300,000 to a whopping $12,566,000. But by then Bush had already sold.

On July 22, insiders of Halberts Allied Home Pharmacy, now called Advance Health Care, hold a fund-raiser for gubernatorial candidate Bush, chipping in $20,750. Other contributions from those insiders that year bring the total to $23,700.

Advance Health Care becomes a publicly traded company called Advance Paradigm.

Bushs trust sells his Advance stock. In his financial disclosure statement last year, he declares a capital gain of up to $1 million on the sale. It also sells his $600,000 stake in the Texas Rangers for about $16 million.
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whistle Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-03-04 07:53 PM
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1. What about September 10, 2001....
...any stock trading going on in the Bush trusts? Even if not, or it could never be proved, still the list above warrants an SEC investigation. It is time for a change. No more Bush!
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ulTRAX Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-03-04 07:54 PM
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2. one of those issues lost after 911
it's about time it was resurrected.... same with Cheney's little scandal.
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PurityOfEssence Donating Member (1000+ posts) Send PM | Profile | Ignore Mon May-03-04 08:40 PM
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3. Don't forget the timing of Saddam's invasion of Kuwait
He sold his stock 41 days before Hussein invaded Kuwait.

Junior's entire life is a series of favors and insider deals from being part of a thuggish dynasty. Harken, although it had never done ANY offshore drilling ANYWHERE, was awarded a juicy and exclusive contract to drill off Bahrain. Along with the impending downturn in Harken's valuation, there was also the danger of major instability in the Gulf. The Bush administration was well aware that something was brewing by late June, and the April Glaspie conversations were either bungling or deliberate baiting.

Lest we forget, Junior was on the Accounting Committee of the Board of Directors of Harken, and had been specifically warned about selling stock. The stock was purchased by an "unknown entity" (speculation is that it was Harvard) just when Junior needed it most. The Aloha Petroleum deal was a shell scheme, just like the Enron "special entities", and was specifically designed to defraud investors. Combine this with the convenient forgetfulness with reporting during all the hubbub of the Gulf War, and it's quite tidy.

The attorney from the SEC who investigated all this was a former Bush family attorney (who had, I believe, also been Junior's attorney) and the investigation ended with a letter that stated that the dropping of the issue was in no way to be considered an exoneration. Of course, Junior has publicly said that they cleared him.
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Karenina Donating Member (1000+ posts) Send PM | Profile | Ignore Tue May-04-04 04:11 AM
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4. Kick!
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