|Musk Shows A Smile Upside-down?|
In what constitutes a slap in the face for the average American who would be thrown in prison for committing such an egregious act of securities fraud Musk will also have to step down as Chairman of Tesla for a term of three years. He will, however, be able to remain at his post as CEO. Another part of the agreement relates to corporate reform and calls for the company to appoint a total of two new independent directors to its board and an almost laughable part of this agreement covers how in the future Musk would also have to get approval or clearance for all his future tweets that "contain information material to the Company" from its board.
|Martha Stewart In Custody|
This was touted by the government as a "big win in its pursuit of white-collar crime." Martha Stewart who used her image of domestic perfection to build a multi-million-dollar company was sentenced to five months in prison plus an additional five months under house arrest and 19 months probation. She also received a fine and court fees, adding up to $30,000. At the time an industry analyst said Martha Stewart Living might not be able to survive as a going concern, but that Stewart having already sold at least $45 million of her company's shares would in all likelihood remain very wealthy. In doubt was whether Stewart, who resigned as CEO before the trial, would be able to run the company with a felony conviction on her record and how she would fare in civil lawsuits based on the conviction.
In short the SEC as a representative of our government, Washington politicians, and Wall Street have rushed out and put lipstick on this pig in an attempt to cover up the wrongdoing of another insider and their comrade in arms. Consider this proof that we live in a different time from those days when many former executives pleaded guilty or found themselves facing trial, from companies that have come to represent the excess of the 1990's stock market boom such as WorldCom, Adelphia, Tyco, HealthSouth, and Enron. Having cost ordinary investors billions of dollars with his manipulative, fraudulent tweet and played a game with their money seems to have little in the way of consequences for Elon Musk. It seems this is as close to getting away scot-free as Elon could ever hope or imagined if corruption was not the flavor of the day.
Footnote; A day after publishing this article I changed the title to better describe the point I'm trying to highlight. this is something I rarely do. The prior title was, Washington A Hotbed Of Cronyism And Collusion!