CEO heads to prison with full pay, bonus

[Robbien]

Fog Cutter Capital Group on Friday gave Andrew Wiederhorn, its prison-bound chief executive officer, a deal perhaps unprecedented in the post-Enron era of corporate reform: a continued position atop the company's organization chart with full salary even as he spends 18 months in federal prison.

Wiederhorn also received a $2 million "leave of absence" payment, according to documents Portland-based Fog Cutter filed Friday with the Securities and Exchange Commission. The company made the payment Wednesday.

The new compensation package, including the payment and annual salary of $350,000, amounts to $4,611 a day of Wiederhorn's confinement before time reduced for good behavior. The $2 million leave of absence payment also matches exactly the sum Wiederhorn agreed Thursday to pay in restitution to victims of the Capital Consultants scam. Wiederhorn also remains eligible for an annual bonus.

Wiederhorn pleaded guilty to two felony counts in U.S. District Court after the investigation into the collapse of Portland money manager Capital Consultants.

http://www.oregonlive.com/news/oregonian/index.ssf?/base/front_page/108643698466190.xml

[Dover]

1. Moral of the story: White Collar Crime PAYS

Do the crime, don't lose a dime.

[Dookus]

2. Un-friggin-believable

I hope the stockholders fire the entire Board of Directors.

[MercutioATC]

5. Well, that's their right. They can also simply divest.

I really don't feel sorry for stockholders. They can either fire the board or divest. Investing is a risk.

It's kinda like complaining about our elected officials when we're the ones who elect them. We get what we deserve.

[mulethree]

9. He is the shareholder

Sounds like a family business, family and friends own 60% of the stock and make up most if not all the directors and executives. They also own the company that benefitted from the scandal he's convicted of.

Sounds like a RICO/mafia type prosecution is in order, but the other shareholders are mainly mutual funds, so they will probably sell at a loss rather than sue. Or the mutuals threaten to sue unless the company takes measures to pump up it's share price or otherwise ensure they don't take an inordinate loss.

[MercutioATC]

10. I understand but if the "little people" divest the family ceases to profit

from things like this.

Again, investing is a risk. If you're screwed, you're just screwed. If you're screwed illegally, you have the option to bring suit.

Yeah, it's messed up, but that's the way it works and everybody should know that going in.

[sundancekid]

3. f*ing people not only with impunity, but now WITH PAY????

quick, call Inhofe, we need some OUTRAGE here ...
:puke:

[nothingshocksmeanymore]

4. hopefully lawsuits will rob him of all of it

[MisterP]

6. does Oregon have "tort reform"?

you know, "no lawsuits that the rich defendants deem frivolous."

[bluestateguy]

7. This is why white collar criminals should go to maximum security prisons

Or be given the death penalty. That'll cut white collar crime.

[TahitiNut]

8. Just like the Mafia and other organized crime.

Corporations like that should be outlawed and their assets confiscated.