Archive for the ‘Options Trading’ Category

A Culture of Corruption

Thursday, January 8th, 2009

The Securities and Exchange Commission (SEC) has filed a civil action against UnitedHealth Group Inc., and former United Health General Counsel David J. Lubben for allegedly engaging in a scheme to backdate stock options.  According to the SEC, between 1994 and 2005 United Health concealed more than $1 billion in stock option compensation by providing senior executives and other employees with secretly backdated grants and avoided reporting the expenses.  According to the Commission’s complaint, certain UnitedHealth officers used hindsight to pick advantageous grant dates for the company’s nonqualified stock options that on many occasions coincided with, or were close to, dates of historically low annual and quarterly closing prices for UnitedHealth’s common stock. (more…)

SEC Stops Allegedly Fraudulent Options Trading Scheme

Monday, December 17th, 2007

The Securities and Exchange Commission has charged Terry E. Provence (Provence) and DT Capital LLC (DT Capital), of participating in a fraudulent options trading scheme.    The case is pending in the United States District Court for the Southern District of Florida, which has temporarily frozen the defendants’ assets.  (more…)