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SEC: Whole Foods CEO's Message Board Posts OK, Trader's IMs Not

Posted Apr 28, 2008 01:44pm EDT by Aaron Task in Investing, Newsmakers

One of the great CEO scandals of the Internet era came to an anticlimactic close late Friday, when the SEC cleared Whole Foods CEO John Mackey of wrongdoing.

Mackey, you may recall, frequently posted on Yahoo message boards under the pseudonym "Rahodeb," which by itself is a little unusual but not worthy of investigation. But Mackey often posted about Whole Foods' business and, more important, competitors such as Wild Oats.

"Would Whole Foods buy OATS? Almost surely not at current prices. What would they gain? OATS locations are too small," Mackey wrote as Rahodeb in January 2005. Whole Foods acquired Wild Oats two years later.

The SEC cleared Mackey of wrongdoing, but Whole Foods shareholders should nevertheless be wondering about his judgment and time management.

While Mackey skates, the SEC did fine a former Schottenfeld Group trader for allegedly spreading false rumors, in a case that could have a chilling effect on Wall Street's main source of currency: rumor and innuendo.

13 Comments

Brown Stranger
Brown Stranger - Monday April 28, 2008 02:02PM EDT

Let's be real, many an executive has posted on the boards to defend and or deflect issues about their companies. These ego-manic's posts don't warrant prosecution due to making remarks on a public board. Some companies hover over the boards to see what the public and or disgruntled employees (present and former) say...and some are obsessed, especially when the internal politics or the skeletons in the closet are let out. Mackay should kick back, count his money, drink some Fair Trade Organic coffee and a gluten free muffin and not care what's posted on yahoo!

Hal F
Hal F - Monday April 28, 2008 02:21PM EDT

Whole Foods meats are not antibiotic free as they suggest. Hello, I recently acquired a extreme allergy to the same class of antibiotics given to livestock (cipro, levaquin, fluoroquinolones). This has lead me to have to go to great lengths to find meat not containing this antibiotic. Hate to say it but I have had numerous reactions from the meat at Whole Foods (and other claimed "antibiotic free" distributes). Most noticeably in their chicken and turkey meats (even the extremely expensive line of turkey hens) but I have seen it in all lines of fish and beef as well. My condition only worsened when I ingest these falsely labeled meats now to the point it is no longer worth it to me to eat any meat at all. I wish an outlet such as Whole Foods would actually care enough to ensure their meats are really antibiotic free, and not just say they are and price it high (do real testing, don't just take the farmers word for it because they are lying). You'll notice none of their meats have the actual government USDA Organic labels which are actually tested.

Hal F
Hal F - Monday April 28, 2008 02:21PM EDT

Whole Foods meats are not antibiotic free as they suggest. Hello, I recently acquired a extreme allergy to the same class of antibiotics given to livestock (cipro, levaquin, fluoroquinolones). This has lead me to have to go to great lengths to find meat not containing this antibiotic. Hate to say it but I have had numerous reactions from the meat at Whole Foods (and other claimed "antibiotic free" distributes). Most noticeably in their chicken and turkey meats (even the extremely expensive line of turkey hens) but I have seen it in all lines of fish and beef as well. My condition only worsened when I ingest these falsely labeled meats now to the point it is no longer worth it to me to eat any meat at all. I wish an outlet such as Whole Foods would actually care enough to ensure their meats are really antibiotic free, and not just say they are and price it high (do real testing, don't just take the farmers word for it because they are lying). You'll notice none of their meats have the actual government USDA Organic labels which are actually tested.

Brian
Brian - Monday April 28, 2008 02:22PM EDT

This felon, blodget should know a thing or 2 about pump & dump...loser

Larry
Larry - Monday April 28, 2008 02:44PM EDT

Should we be worried that he would post here?

Yahoo! Finance User
Yahoo! Finance User - Monday April 28, 2008 02:57PM EDT

would like to see the facts of the case. sure smells like a dirty sec (surprise) and a dirt bag of a ceo. i agree with the other user poster americans continue to get screwed by the system.

kasketmaker
kasketmaker - Monday April 28, 2008 03:08PM EDT

Response to a yahoo finance poster who said Mackey should be in jail? How about Jorge Boosh and Dik (the shooter) Cheney in PRISON for lying and having over 4,040 US Military mena dn women slaughtered for oil and protecting Israel? Question...why is the Israeli army not in Iraq? I thought they were our strongest supporter besides Britian? Yea right, the only thing they support is the Bil/lions of US Taxpayer money that is being fed into their bank accounts.

Satisfied Customer
Satisfied Customer - Monday April 28, 2008 03:15PM EDT

He did nothing wrong, why should he be in jail?

__A_YAHOO_USER__
__A_YAHOO_USER__ - Monday April 28, 2008 03:50PM EDT

tecolote43@sbcglobal.net if you plan to jail Bush & Cheney, you might want to haul off all the politicians (democrat & republican) who all swore up & down that Saddam had WMD. while you're at it, we can jail the global intelligence community who also swore Saddam had WMD. no one lied, & impeachment for Iraq is a pipedream of you pathetic bush haters.

Gorj
Gorj - Monday April 28, 2008 04:09PM EDT

just curious how many viewers recognize blodget and kno his history. trading tech stocks will always be function of communication and yahoo is upgrading constantly to be the first on the street with the latest nooz... thank you yahoo - let the buyer beware !

Ajoy Bhatia
Ajoy Bhatia - Monday April 28, 2008 05:53PM EDT

I wonder who that anonymous "Yahoo! Finance User" is, and why does he/she say: "But of course, in America, if you are a CEO you won't go to jail, barring a rare event that generates widespread media coverage (Enron and WorldCom)." Hey User - don't you think that this event generated widespread media coverage? So CEOs CAN go to jail in America, 'coz the instances you try to show as exceptions - the same rule covers this case, too.

Ajoy Bhatia
Ajoy Bhatia - Monday April 28, 2008 05:53PM EDT

I wonder who that anonymous "Yahoo! Finance User" is, and why does he/she say: "But of course, in America, if you are a CEO you won't go to jail, barring a rare event that generates widespread media coverage (Enron and WorldCom)." Hey User - don't you think that this event generated widespread media coverage? So CEOs CAN go to jail in America, 'coz the instances you try to show as exceptions - the same rule covers this case, too.

Louise
Louise - Monday April 28, 2008 06:15PM EDT

You are wrong abou the meats Hal...Maybe you should look into the other things you ate with the meat!!

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