Ex-Telecom Exec Nabbed in “Spinning” Case: Judge

Law360, New York (February 13, 2006, 12:00 AM EST) -- Dragging into the open one of the last major conflict-of-interest cases that tore through Wall Street nearly four years ago, a Manhattan judge ruled the former CEO of bankrupt telecom McLeodUSA engaged in “spinning” stock trades in the late 1990s.

The ruling last week is tied to a 2002 lawsuit brought by New York Attorney General Eliot Spitzer against Clark McLeod, which argued McLeod had driven his company’s investment banking business to Salomon Smith Barney in exchange for buying shares of young companies about the make...
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