Monday, July 19, 2004

How Do I Get A Deal Like This?

After years of investigation, litigation, rumors, and innuendo, Portland, OR entrepreneur Andrew Wiederhorn made a plea bargain with federal prosecutors. He agreed to an 18 month prison sentence, and to the payment of $2M (that's $2 million) in restitution to investors in Capital Consultants. His company collapsed in September 2000, defaulting on a $160 million debt.

The day after reaching the plea arrangement, Wiederhorn's new company, Fog Cutter Capital, announced that in addition to continuing to pay Wiederhorn $335,000 a year as co-CEO while he is in prison, they have decided to award him a $2 million "leave of absence" payment! Where did I just read that number?

As a result of this move, Fog Cutter may be de-listed by the NASDAQ stock exchange.


Post a Comment

<< Home