Oops: George Allen didn’t disclose stock options

It seems for the last 5 years Senator George Allen (R-naturally) neglected to report stock options he obtained for his work as a director of a high-tech company. The Virginia Republican also asked the Army to help another business that gave him similar options.

Congressional rules require senators to disclose to the Senate all deferred compensation, such as stock options. The rules also urge senators to avoid taking any official action that could benefit them financially or appear to do so.

Those requirements exist so the public can police lawmakers for possible conflicts of interest, especially involving companies with government business that lawmakers can influence.

Allen’s stock options date to the period from January 1998 to January 2001 when Allen was between political jobs and had plunged into the corporate world.

An Associated Press review of Allen’s financial dealings from that era found that the senator:

_Did not have to look far to find corporate suitors, joining three Virginia high-tech companies he assisted as governor. Allen served on boards of directors for Xybernaut and Commonwealth Biotechnologies and advised a third company called Com-Net Ericsson, all government contractors.

_Twice failed to promptly alert the Securities and Exchange Commission of insider stock transactions as a Xybernaut and Commonwealth director. The SEC requires timely notification and can fine those who file late.

_Kept stock options provided to him for serving as a director of Xybernaut and Commonwealth, but steered other compensation from his board service to his law firm.

I guess he was just continuing the typical GOP high ethical standards he displayed while Governor of VA:


As Virginia’s governor, Allen took representatives of Xybernaut and Ericsson on trade missions. He helped steer $4 million in tax-exempt bonds to Commonwealth for new headquarters and announced an $800,000 state grant to help Lynchburg, Va., prepare a site for an Ericsson expansion.

Then he went to work for those companies.

Allen joined Commonwealth’s board of directors about two months after leaving the governor’s office in January 1998. Xybernaut named him a director that August, and he became a Com-Net Ericsson adviser in February 2000.

“He was an ex-governor and pre-senator,” Commonwealth’s Harris said. “He represented a skill set that was of value to the company in terms of his corporate legal experience and he was, and is, a high-profile person prominent in Virginia and elsewhere.”

“A skill set that was of value to the company” = An unethical, corrupt dishonest politician (AKA a Republican).

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2 Responses to Oops: George Allen didn’t disclose stock options

  1. johng says:

    The corruption just continues with these guys. Absolute power corrupts, this is why we need to take back the House and Senate next month. George Allen is the poster child for the Republican corruption machine. I can’t wait to hear how Druggie Limbaugh tries to spin this one.

  2. Ginny Cotts says:

    A skill set that involves a rolodex of phone numbers, an email list and the willingness to use them.

    I dunno about poster boy. I thought that was Delay.