He Said a Mouthful

May 5 marked the first anniversary of a curious legal settlement between Golf Entertainment Inc. of Springdale (a.k.a. Sienna Broadcasting Corp.) and an entity called Genesis Trust.

The settlement resulted in the transfer of control of the company to Genesis Trust and a two-thirds dilution of the stock, although shareholders weren’t told of that until a July filing with the Securities and Exchange Commission.

Also, the shares transferred as part of the settlement weren’t properly registered, so the Arkansas Securities Department issued a cease-and-desist order against Golf and Genesis and several principals of the two organizations.

President Bush marked the anniversary by standing on the stage of the Robinson Center in Little Rock and uttering the following words:

“CEOs in America must understand with certainty, there will be consequences if they’re not responsible citizens. If they’re not responsible to employees and responsible to their shareholders, there will be consequences in America. Capitalism must have honesty in the boardrooms of American corporations.”