It Was the Butler, in the Hamptons, with the Fax Machine

Author:
Updated:
Original:

Turns out to be the winning Clue for the SEC, in a $66k insider-trading settlement with Graham Lefford, former butler to American Idol creator Robert Sillerman. Lefford was “managing” Sillerman’s house in Southampton, and doing some day trading on the side. Lefford decided to buy 5,000 shares of Sports Entertainment Enterprises (now CKX) coincidentally about 12 minutes after signatures were faxed to cement a $100 million deal to buy a stake in Elvis Presley’s estate.
Shares of the then penny stock shot up 9,000% in two days after the announcement, netting Lefford almost $49k from a $600 investment. Lefford agreed to relinquish his profits and pay a penalty plus a bit of interest (amounting to the $66k), all without having to admit any wrongdoing, the SEC’s preferred method of toothless “enforcement.”
Sillerman does make all his help sing “A Moment Like This” and sign a confidentiality agreement that prohibits using information obtained during work for personal benefit.
PS – When going to the CFO.com link, does anyone else get a “Youth Porn Rehabilitation” Google ad on the side of the page or is my computer trying to tell me something (by that I mean rehab for teens who look at porn, not people looking at teen porn...key difference)?
A Whodunnit in the Hamptons [CFO.com]

Related