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The New York Times reports on an insider trading case. It turns out, the butler did it.

On Aug. 11 and Aug. 12, 2004, Mr. Sillerman's Manhattan office faxed documents on the buyout to the poolside office of his home in Southampton, including a draft press release and, later, a written consent form. "As the house manager," the complaint says, Mr. Lefford "managed the day-to-day affairs" of the house and performed other services "traditionally done by a butler." As such, he handled confidential business documents for Mr. Sillerman.

On Aug. 12 at 10:20 a.m., Mr. Lefford faxed over the signature page of the consent agreement to Mr. Sillerman's Manhattan office. Twelve minutes later, according to the complaint, Mr. Lefford bought 5,000 shares of Sports Entertainment stock, which traded on the over-the-counter bulletin board, through a brokerage firm account he held with his wife. He paid 12 cents a share.

When the three-way deal was announced on Dec. 16, 2004, Sports Entertainment's stock price rose to $6.41 a share. Mr. Lefford sold his holdings a few days later at prices ranging from $9.25 to $10.50 a share.

Posted by edelfenbein at September 27, 2006 9:13 AM