Ex-Telecom Exec Settles IPO Spinning Case

Law360, New York (July 31, 2006, 12:00 AM EDT) -- The last of five executives accused of IPO spinning has settled with New York State Attorney General Eliot Spitzer for $4.4 million.

Clark McLeod, the former chairman and chief executive officer of McLeodUSA, a telecommunications company, was accused of driving his company’s investment banking business to Salomon Smith Barney in exchange for buying shares of young companies about to make an initial public stock offering.

The stock maneuvers, involving 34 IPO investments—only one of which lost value—garnered McLeod almost $10 million between 1997 and 2000, according...
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