Message ID: 377508
Posted By: lttscoparty
Posted On: 2006-06-04 16:32:00
Subject: Backdated Options - Hello SEC?

I've got to give Bert Young a little credit - sometimes a scam participant does the right thing despite being part of a scam. Since he took over as CFO at SCOX, it appears to me that all Form 4 filings WRT option grants have been quite timely on his watch. Unless I'm missing something, back-dating of option grants is not a regulatory issue for his period of tenure.

Robert Bench appears to have been quite the doozy though, and I don't think it will go unnoticed.

I figured that the period of interest would be when the stock price ran up during 2003, and I was right.

Disclaimer: I will be referring to discrepancies between share prices on the strike date & the date filed as "unjust enrichment". I am not an accountant, an attorney or an SEC investigator - hell, it takes me three or four minutes to count my fingers & toes - so what I call unjust enrichment might not legally be considered unjust.

*But it will be in my complaint to the SEC*

The stock price started its upward move in March 2003. On 3-28-03 (when the stock was trading at $2.84), Form 4s were filed totalling 500K options 'granted on 3-18-03' at an exercise price of $2.07 (the closing price on 3-18). The beneficiaries of this largesse were Reg Broughton, Jeff Hunsaker, Darl McBride, Michael P Olson & Robert Bench. Total unjust enrichment: $385,000.

On 7-24-03 (closing price $14.26), one batch of Form 4s were filed totalling 50K options 'granted on 5-16-03' at an exercise price of $4.75. The beneficiaries were Steven Cakebread, Ed Iacobucci, Duff Thompson, Ralph Yarro & Darcy Mott. Total unjust enrichment: $475,000.

On 12-12-03 (closing price $16.02), that batch of form 4s was amended, raising the total number of options 'granted on 5-16' to 75K at an exercise price of $4.75. If I only count the 25K additional shares here, total unjust enrichment is $281,750.

On 7-24-03 (closing price $14.26) another form 4 was filed, totalling 10K options 'granted on 6-2-03' at an exercise price of $6.13. The beneficiary was Thomas Raimondi. Total unjust enrichment: $81,300.

On 12-15-03 (closing price $15.50), that form 4 was amended, increasing the total number of options 'granted on 6-2-03' to 15K at an exercise price of $6.13. If I only count the additional 5K shares here, total unjust enrichment is $46,850.

Which totals up to $1,269,900 in gains due to apparently back-dated option grants.

I could be reading it completely wrong, but I'll let the good folks at the Three-Letter-Agencies sort that out. Since option back-dating is SEC's scandal du jour, I suggest that now is the time to send your complaints to

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