“Hello thank you for calling American Airlines”
“Uhh, yeah, look here. I’m interested in buying your company”
“Excuse me sir? You want to buy a plane ticket?”
“No, I want to buy the airline. I’m prepared to pay $1.3 billion dollars. Do you take rolled quarters?”
Absurd? Why yes it is.
Untrue? Why no it’s not!
Illegal? Apparently so because one Allen Weintraub was recently hit with a 17-page lawsuit from the SEC for posing as a serious bidder in the purchase of American Airlines and Kodak-Eastman when, in fact, he had no assets or access to the huge sums of money those deals would require. Apparently such posturing violates a decades-old Securities Exchange Act.
What’s worse is Weintraub was already a convicted felon having a long history of financial fraud, according to the Securities and Exchange Commission.
Weintraub, posing as the head of Sterling Global, a privately-held company that purchases distressed franchises, contacted both American Airlines and Kodak offering in one instance a buy out representing 70% premium over the company’s current stock value. Weintraub claimed to have access to the capital, but no records could be produced to prove his claims and further, no records of his corporation “Sterling Global” were ever found- in any of the locations it claimed to have presence around the globe.
As ballsy as it is hilarious, Weintraub is now facing several civil penalties and the SEC seeks to have Sterling Global and it’s apparent sole employee, Weintraub, banned from any further portrayal of themselves as serious and legitimate bidders for Kodak and American Airlines.