Link For Feinstein Co-Founder (BBBY) and Madoff Who Swindled Him Out of His Money
Cut and Paste link between Feinstein Co Founder CEO/CFO of Bed, Bath and Beyond and Madoff who swindled him out of money. I guess he sold millions of shares to get himself back on his feet. Pumping up a stock and dumping is sometimes necessary when you have so much personal overhead. What do you think?
Eisenberg's family too (Ronald) may have been a victim http://www.rutilusallec.com/?p=1955 , there are lots of ties to madoff at any rate. So, both were vicitims at least to some extent and probably had savings depleted.
On the positive side for the company it seems like an external reason to cash in. On the negative side it does give them reason to pump the stock as you mention... pure speculation and nothing concrete here though.
Price manipulation is largely accomplished through self dealing; it's quite a bit like a land flipping scheme where a piece of property is traded back and forth at ever higher prices between conspiring parties. This is done with stocks through multiple accounts at different firms and done when volume is low to move the price. It takes very big players (like a market maker) to do it with widely traded stocks.
Madoff learned to do this in the market making business and it taught him the lesson that fundamentally, the markets and banking system in this country (world-wide really) are pretty much entirely a confidence scam. Once he realized that and had been doing it so long flipping stocks, he figured why bother milking the flow (because the cashing in part of flip only recovers a fraction of the run-up due to the depressing effect of selling in a real market). Instead it seems he decided why not keep the principal and use the flow to maintain the confidence.