Thursday, June 25, 2009

SEC Completes Fairfax Financial Investigation

After several years of innuendo by various analysts and hedge funds, the SEC's exhaustive investigation into Fairfax Financial has been completed without any enforcement action. 

http://www.fairfax.ca/Assets/Downloads/Press/fpr2009-06-25.pdf

Among the public attacks that the company had to endure and defend:

- A barrage of negative and erroneous reports by former Morgan-Keegan analyst John Gwynn, who was subsequently terminated for releasing privileged information to specific clients. 

- A public attack by hedge fund manager Jim Chanos, decrying that there were some nefarious undertakings at Fairfax, and by stating that the "stock was a zero" at a well-known value investing conference in New York City back in 2005. 

- Alledged threats and fraudulent contact by charged business consultant Spyro Contogouris.

The complete list of defendants in Fairfax's suit against various parties charged with manipulation of their stock can be found at:

http://securities.stanford.edu/1037/FFH_01/2007116_f01k_064197.pdf