Gary Winnick Global Crossing

Overview  Global Crossing is a telecommunication company that provides worldwide computer networking services.  Gary Winnick, Founder and Chairman of the Board of Directors for Global Crossing

Timeline  Projections reported additional $531 million pumping up earnings by 50%.  Blackouts periods imposed on employee's) 401k  Winnick sold stock worth $734 million.  January 2002 declared chapter 11 bankruptcy  October Winnick - gave $25 million toward employee retirement losses.

Timeline  October 2004 new strategy to turn around performance in its core business while improving margins  End of 2006 anticipate becoming cash flow positive.

Issues  Projection of $531 million Unethical and legal not required to use GAAP Did not exist/not required to exist.  Winnick-Liquidation of $734 million Unethical and legal Insider trading – Sarbanes Oxley Act of 2002 (July 29, 2002)

Issues  Reimbursement of $25 million by Winnick to employees Ethical and legal