Daniel Reingold - Confessions of a Wall Street Analyst: A True Story of Inside Information and Corruption in the Stock Market

As of this writing.

Phil Anschutz Anschutz remains chairman of the Anschutz Corp. In 2003, Anschutz settled a suit brought by Eliot Spitzer, alleging improper receipt of IPO shares from Salomon Smith Barney, by paying $4.4 million.1 Since then, he has funded the Oscar winner Ray, owns The San Francisco Examiner and Los Angeless Staples Center, and has stakes in the L.A. Lakers basketball team and the L.A. Kings hockey team. He still owns 18 percent of Qwest, worth about $1.1 billion, not counting the $1.9 billion in Qwest shares he had sold earlier. In contrast to Joe Nacchio, Anschutz was not charged in the March 2005 SEC complaint against five top Qwest executives. He is said to be worth about $5 billion.2

C. Michael Armstrong The former AT&T CEO gambled and lost when it came to betting on cable as the future of AT&T. He retired in 2002 after he sold AT&Ts cable operations to Comcast. Today, he remains on the boards of Citigroup, Hospital Corporation of America, and the Parsons Corporation. Hes also taken to academiahes a visiting professor at the Sloan School of Management at MIT, and he was recently named to a volunteer position at Johns Hopkins Medicine that oversees cooperation between the noted medical school and teaching hospitals in Baltimore. He has become a champion of stem cell research. He splits time between Darien, Connecticut, and Naples, Florida, with his wife, Anne.3

Jim Crowe The former CEO of MFS has been CEO of Level 3 Communications since 1997.4 Hes still going strong, though Level 3s stock price has never recovered from its dot-com collapse.

Carol Cutler Left the investment profession and is now working at Calvin Klein in Manhattan as a gift registry specialist.

Brady Dougan When John Mack was ousted at CSFB in 2004, Dougan stepped in as the new CEO. Unlike Mack, however, he has not been made co-CEO of the parent company, Credit Suisse Group.5 Trying to smooth over the rough edges, he keeps his tie tightened around his neck more often.

Bernie Ebbers The former WorldCom chief, convicted of overseeing the companys $11 billion fraud, was sentenced to 25 years in prison on July 13,2005. If his appeal fails, he will likely spend his remaining days at the federal prison in Yazoo City, Mississippi, about 100 miles from his former home in Brookhaven, Mississippi. Since his sentence is more than 10 years, he did not qualify for placement at Yazoos minimum security prison. He will likely be placed in a facility with about 1,750 other inmates. Hell sleep in a bunk bed with a roommate in a cubicle-like room. Hell also work seven hours a day, five days a week, as long as hes medically able, and will be given tasks ranging from food service and plumbing to painting and grounds-keeping. He might have a chance to ride a tractor, one of his passions.6 Ebberss wife, Kristie, will be allowed to visit for a minimum of four hours a month.7

Kristie, meanwhile, was allowed to keep a modest home in Brookhaven, $50,000 in cash, and a retirement accountlivable, but a far cry from her days as the wife of a billionaire.8

Bill Esrey The former Sprint CEO was forced out in 2003 after the IRS raised questions about some tax shelters he used when exercising a large number of stock options. If the IRS requires him to pay up, he could face substantial tax liability and penalties. Yet Esrey was given a severance package of over $10 million in addition to 10-year memberships in two country clubs as well as office space and secretarial help for the rest of his life.9

Ed Greenberg Remains a successful senior telecom investment banker at Morgan Stanley.

Jack Grubman Jack is still trying to hustle his vision of the telecom industry. A Fortune article described him meeting with small-time paging companies in order to impart his wisdom. While a defendant in numerous class-action lawsuits filed by disgruntled investors, he still maintains a six-story town house in Manhattans Upper East Side that he once claimed would be featured in House & Garden. He also owns a home in East Hampton, Long Island. The twins graduated from the 92nd Street Y preschool and now attend public school right near the town house.10 On January 24, 2003, a federal court consolidated approximately 80 actions against Salomon Smith Barney, Inc. and Jack Grubman, et al., involving allegations of securities fraud in connection with analyst research reports, into nine lead actions. At this writing, several cases are still pending before the Honorable Gerard E. Lynch, U.S. District Judge, Southern District of New York.

David Komansky In the wake of the analyst scandals and subsequent settlements with Spitzer, Komansky pushed up his planned retirement date by a year, handing over the Merrill Lynch CEO post to Stanley ONeal in late 2002 and the chairmanship in April 2003.

John Mack After being forced out of CSFB in a power struggle with his Swiss bosses in 2004, Mack the Knife played some golf, briefly took on the role of point man in a dissident movement involving disgruntled seat holders on the New York Stock Exchange, and spent less than a month as chairman of a hedge fund. He triumphantly returned to Morgan Stanley on June 30, 2005, taking over from his nemesis, ousted chairman and CEO Phil Purcell, who had alienated the Morgan Stanley bankers.11

Joe Nacchio Nacchio is the latest target of regulators, who filed a civil suit against him and six other former Qwest executives on March 15,

2005. The SEC accused Nacchio and the others of a massive financial fraud.12 He still lives in Mendham, New Jersey, with his wife, and resurfaced in 2004 as a consultant and even part-owner of BCN Telecom, a small-business telecom firm.13 More than likely, his real job today is to prepare for the most important trial of his life, a trial that could take away from him much of the over $200 million he made by selling Qwest shares between 1999 and 2001. The U.S. Department of Justice has a criminal investigation underway of the fraud at Qwest, which raises the possibility of jail time if Nacchio is charged and convicted.14

Dick Notebaert After Joe Nacchio was fired, Notebaert became chairman and CEO of Qwest on June 17, 2002, and remains there today. Qwest made an abortive bid for MCI in 2005.15