Not Disclosing Your Pump-And-Dump Past Might Make It Harder To Sell Your Company

from the paper-trail dept

Breaking securities laws doesn’t mean that you can’t keep running businesses — just ask Vonage Chairman Jeffrey Citron. However, if you don’t disclose your past to potential buyers of your company and they come to find out your white-collar crime track record, you shouldn’t be too surprised if they see it as a turnoff. Rumors popped up yesterday that Yahoo was in talks to buy the network of sports sites for $100 million, with the deal described as “overpriced”. However, two previous deals to buy the company are rumored to have fallen apart when suitors discovered’s CEO’s alleged criminal past as part of a pump-and-dump scam — something he evidently failed to disclose to them. Hopefully the guy’s figured out by now that it really isn’t too hard to run de facto background checks on people using the web — particularly considering it’s a search company that’s supposed to be the buyer this time around. Update: Apparently the CEO in question disputes these claims and is threatening to sue TechCrunch over the initial posting.

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Comments on “Not Disclosing Your Pump-And-Dump Past Might Make It Harder To Sell Your Company”

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NWP (user link) says:

MR. Shannon Terry

Well it seems that this CEO is Mr. Terry and he has sicked his lawyers on for libel for reporting his past SEC investigation and alleged crimes. He turned snitch and then is trying to walk away totally clean. is a good site and their right to freedom of speech needs to be protected.

When a company is being sold, just like a house full disclosure should apply.

What is Mr.. Terry afraid of?

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