Global Crossing Stock Fraud

Global Crossing, a stock pick of Salomon Smith Barney’s analyst Jack Grubman, founded in 1997 set out to turn the telecom industry on its axis by laying fiber-optic pipes for data which could be sent worldwide. With $397 million raised jointly with Salomon Smith Barney, Global Crossing went public in 1998. By 1999 Global Crossing stock soared to $61.38, over 30 times earnings. Grubman advised Global Crossing in their purchase of Frontier Communications and attempted but failed take over of US West.

By October of 2001, Global Crossing was on its fifth CEO and filing for bankruptcy. With the stock trading around $1 per share, Grubman cut his rating from “buy” to “neutral”. After the bankruptcy filing, Grubman reported he no longer covered Global Crossing.

Unfortunately the executives at Global Crossing suffered none of the catastrophes of lost 401k’s, no severance packages for laid off employees and loss of life time savings experienced by its shareholders. Reports of $90 million homes, $4 million bonuses, $15 million in free loans and $750 million in shares to various executives leave stockholders fuming and filled with resentment.

Parenthetically, it should be noted and EMPHASIZED that "people's party leader" terry mccauliffe parlayed $100,000 into $18 million in this clintonian, fraudulent scenario; and don't forget hill(billy) rodham clinton "turning" $1,000 into $100,000 (fixed/fraudulent) and whitewater which also was fixed (and fraudulent).