The New York Mercantile Exchange, the biggest investor in Optionable Inc, removed its representative from the energy broker's board of directors after learning the former chief executive officer served time in prison…Kevin Cassidy, who stepped down as CEO on May 12, was sentenced to 30 months for a felony conviction on credit card fraud in 1997 and six months for income tax evasion in 1993, court records and Federal Bureau of Prisons documents show.
But the best quote comes from Edward Fleischman, a former SEC commissioner and now an attorney at Linklaters, New York, on the subject of Cassidy temporarily stepping down from the Optionable board during its IPO:
“It is perfectly legal to step off a board and go back on even if you bridge the IPO in doing so.'' While the resignation and rehiring may have been “something of a dodge,” it didn't violate disclosure rules, he said.
Well, it damn well should have. But it’s nice to have reformed securities regulators upholding both the spirit and the letter of the law.
Nymex Director Resigns From Optionable Over Chief's Prison Time
By Matthew Leising
Bloomberg May 15 2007