Mesa under possible SEC investigation?

[poorpropdriver]

I heard a rumor the other day from someone in the securities industry that Mesa may be under an SEC investigation. The story goes that JO and his cronies have been illegally funneling funds to shell corporations they own that do work for Mesa. Not illegal on it's face but these payments were not disclosed.

 

[Mesa Lifer]

It's no big secret here...that sh!t has been going on for years.

I hope that the SEC gives JO what he deserves.

-ML

 

[Dave Benjamin]

Hasn't Ornstein aready been convicted for stock fraud once? Maybe a judge will ban him from any sort of corporate governance.

 

[Pez D. Spencer]

Originally posted by poorpropdriver

I heard a rumor the other day from someone in the securities industry that Mesa may be under an SEC investigation. The story goes that JO and his cronies have been illegally funneling funds to shell corporations they own that do work for Mesa. Not illegal on it's face but these payments were not disclosed.

Shell corporations... very Enron-esque. With all the accounting scandals of the past few years - I would bet your rumor is more truth than speculation. I would also bet that the SEC will eventually take interest in a number of Airlines - as they did with American shortly after the Enron debacle.

From Time.com in a story about companies (other than Enron - part of the so called "Enron effect") drawing scrutiny from regulators (01/27/2002)

AMR, the parent of American, like many airlines, owes billions of dollars in long-term lease agreements that do not show up as debt on the balance sheet but for which it is liable.

With all of the financial difficulties in the industry, it would not be surprising to see even more scrutiny in the future. Considering the dubious nature of Mesa's exec's - and their alleged insider trading, I think the lawsuit by ACA was a good move, and will probably only fuel the SEC's motivation to look deeper into the company's accounting practices.

 

[poorpropdriver]

This person also told me JO sold 400,000 shares of Mesa stock in one day to a private buyer not on the open exchange.

 

[POKEY]

I also saw that where he sold stock in MESA about a week before they announced the takeover bid, but I find it hard to believe the even JO would be stupid enough to do that. There has to be more to it.

 

[j41driver]

JO can go fu(k himself with his 15 motorcycles AND his Mini Cooper. Fag.

 

[Palerider957]

The SEC is a fly on an elephant. Don't look to them to put a stake through the heart of JO. It took the collapse of Enron and the loss of BILLIONS to get them to put their coffee cups down. Mesa is way too small of a fish to fry for them to be concerned about his dealings.

Now if he were famous like Martha Stewart?? (note: I said famous, not infamous)

 

[poorpropdriver]

You might be right, however, the proposed ACA merger will bring increased scrutiny by regulators. ACA would certainly try and point out any inconsistencies in business practices to try and squash the deal.

 

[belchfire]

surprise, surprise!

Things are so bad at corpex that there
has been one defection to mesa, and
others are considering it...the one guy
said that they have a profit sharing
program if the company makes a profit
in four consecutive quarters...the
shell companies getting paid keeps
them from making a profit, J(L)o sticks
more cash in his pocket, and also
dodges paying the people that made
any profit possible...the ones that
work so that he can cheat them some
more...

Stillaboo...I retract my statement about
only mesa being worse than corpex. You
guys are at least getting your raises...
and better per diem! J(L)o is still scum!

 

[eaglefly]

IMO, Johnny smooth talk should have been under indictment long ago.

...after declaring ethical bankruptcy.

 

[Club ORD FO]

JO... I sentence you to five years in a federal pound me in the ass prison.

ACA RJ FO