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SEC to Look at Whole Foods CEO's Internet Activity
The Securities and Exchange Commission has reportedly begun an informal inquiry into the Internet message board postings of Whole Foods Market (WFMI - Cramer's Take - Stockpickr) Chief Executive John Mackey.
The online version of The Wall Street Journal reported late Friday that regulators will likely examine whether Web comments by Mackey during an eight-year stint of posting company-cheering entries under a pseudonym had contradicted official Whole Foods statements.
The SEC also will likely look at whether Mackey selectively disclosed material corporate information in violation of securities laws, the Journal said.
In a Whole Foods blog post following the disclosure by the Federal Trade Commission of Mackey's Web writings, the CEO said he never revealed any "proprietary" information about the company.
The Journal said it isn't clear that Mackey violated any laws. Whole Foods closed Friday up $1.50, or 3.9%, to $40.50.
Whole Foods' Mackey subject of SEC inquiry
SAN FRANCISCO (MarketWatch) -- The Securities and Exchange Commission has opened an informal inquiry into Whole Foods Market Inc. Chief Executive John Mackey's anonymous posts to Internet message boards, according to a report late Friday on The Wall Street Journal's Web site.
The SEC is looking into Mackey's roughly eight years of anonymous posting, which included positive remarks about his own company's health and disparaging remarks about a company Whole Foods (WFMI : Whole Foods Market Inc
WFMI40.50, +1.50, +3.8%) is currently attempting to acquire, the report said.
The report, citing anonymous sources, said it was unclear whether Mackey had broken any laws through his message-board posting, though it did raise legal questions.
Issues the SEC may look into, the report stated, include whether Mackey posted information about his company that contradicted its past public statements, and whether the posts were overly optimistic about the company's performance.
Mackey's posting, under the pseudonym "Rahodeb," occurred between 1999 and 2006. The posting was publicly disclosed when the Federal Trade Commission began investigating the planned merger of Whole Foods and Wild Oats Markets Inc., and was first reported by The Wall Street Journal Thursday.
A Whole Foods spokeswoman did not immediately respond to a request for comment
http://www.marketwatch.com/news/stor...D&siteid=yhoof
Apparently I'm the only one who wonders how many brokers knew that Rahodeb was really John Mackey. Certainly only a handful of broker/analysis need to know who Rahodeb really is for this to be a much larger story than the press is reporting. It would be very interesting to see what the stock did after each of the 1,900 or so posts made by Mackey over these eight years. Wouldn't shock me if Mackey knew the brokers nicks on the forum as well, hell it was his forum, he'd be able to check the IP address of anyone checking out his forum. I'd say this is a much bigger story that's without a doubt.
The Securities and Exchange Commission has reportedly begun an informal inquiry into the Internet message board postings of Whole Foods Market (WFMI - Cramer's Take - Stockpickr) Chief Executive John Mackey.
The online version of The Wall Street Journal reported late Friday that regulators will likely examine whether Web comments by Mackey during an eight-year stint of posting company-cheering entries under a pseudonym had contradicted official Whole Foods statements.
The SEC also will likely look at whether Mackey selectively disclosed material corporate information in violation of securities laws, the Journal said.
In a Whole Foods blog post following the disclosure by the Federal Trade Commission of Mackey's Web writings, the CEO said he never revealed any "proprietary" information about the company.
The Journal said it isn't clear that Mackey violated any laws. Whole Foods closed Friday up $1.50, or 3.9%, to $40.50.
Whole Foods' Mackey subject of SEC inquiry
SAN FRANCISCO (MarketWatch) -- The Securities and Exchange Commission has opened an informal inquiry into Whole Foods Market Inc. Chief Executive John Mackey's anonymous posts to Internet message boards, according to a report late Friday on The Wall Street Journal's Web site.
The SEC is looking into Mackey's roughly eight years of anonymous posting, which included positive remarks about his own company's health and disparaging remarks about a company Whole Foods (WFMI : Whole Foods Market Inc
WFMI40.50, +1.50, +3.8%) is currently attempting to acquire, the report said.
The report, citing anonymous sources, said it was unclear whether Mackey had broken any laws through his message-board posting, though it did raise legal questions.
Issues the SEC may look into, the report stated, include whether Mackey posted information about his company that contradicted its past public statements, and whether the posts were overly optimistic about the company's performance.
Mackey's posting, under the pseudonym "Rahodeb," occurred between 1999 and 2006. The posting was publicly disclosed when the Federal Trade Commission began investigating the planned merger of Whole Foods and Wild Oats Markets Inc., and was first reported by The Wall Street Journal Thursday.
A Whole Foods spokeswoman did not immediately respond to a request for comment
http://www.marketwatch.com/news/stor...D&siteid=yhoof
Apparently I'm the only one who wonders how many brokers knew that Rahodeb was really John Mackey. Certainly only a handful of broker/analysis need to know who Rahodeb really is for this to be a much larger story than the press is reporting. It would be very interesting to see what the stock did after each of the 1,900 or so posts made by Mackey over these eight years. Wouldn't shock me if Mackey knew the brokers nicks on the forum as well, hell it was his forum, he'd be able to check the IP address of anyone checking out his forum. I'd say this is a much bigger story that's without a doubt.