Magazine

Table: Back in the Oil Patch


APR. 1986

George W. Bush sells his stake in oil drilling outfit Spectrum 7 for $600,000 worth of Harken Energy shares. Unlike most other officers of companies that Harken acquires, Bush becomes a Harken director and sits on the board audit committee.

JUNE 1989

Harken sells its Aloha Petroleum subsidiary to major Harken stockholders for $1 million in cash and an $11 million note. Harken books $8 million profit on the sale, despite the IOU.

MAR. 30, 1990

Harken reports an '89 loss of $3.3 million.

JUNE 22, 1990

Bush reaps $849,000 by selling 212,140 Harken shares at $4 a share. He previously had filed a Form 144 notifying the SEC of his intention to sell shares.

JUNE 30, 1990

Harken calculates a second-quarter loss of $23.2 million, eight times the loss in the year-ago quarter. When Harken reveals this in August, share price plummets to $2.38 but bounces back to $3 next day.

JAN. 1991

The SEC forces Harken to restate its '89 earnings, thus adding more than $9 million to a reported loss of $3.3 million.

MAR. 4, 1991

Bush files Form 4, notifying the SEC of his stock sale as a company insider, 34 weeks later than SEC rules dictate. While campaigning for Texas governor in 1994, he blames the late filing on the SEC, claiming regulators misplaced the form.

APR. 1991

The SEC opens an insider-trading investigation against Bush. An internal SEC memo notes he repeatedly failed to file on time.

OCT. 1993

The SEC closes the probe, based on an Enforcement Div. finding that, despite his audit committee seat, Bush didn't have early notice of most of the information in Harken's second-quarter earnings report when he sold stock.

JULY 3, 2002

The White House says Bush misspoke when he blamed the SEC for his late forms. Bush spokesman now says the delay was due to a "clerical mistake" by lawyers.


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus