12:30 pm May 23, 2011, by jgalloway
So begins the scrutiny of Republican presidential campaign Herman Cain.
Mother Jones, a decidedly liberal publication, says the metro Atlanta entrepreneur was involved in some funny business while on the board of directors of a Midwestern energy company named Aquila:
According to five lawsuits filed in federal court in 2004, Aquila’s board of directors—which Cain joined in 1992—allegedly steered employees into heavily investing their retirement savings in company stock. At the same time, the company shifted its business model from straightforward energy generation to risky energy trading, an unregulated market made infamous by now-defunct Enron. The suits, later folded into a single, massive class action, alleged that Cain and top company officials violated a 37-year-old federal law requiring that employers manage employees retirement programs responsibly. (Cain’s presidential exploratory committee did not respond to a request for comment.)
The legal action was settled in 2007 for $10.5 million.
- By Jim Galloway, Political Insider
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