BayStar Refund Reason Discovered?

The recent request from BayStar for their $20M investment back is a first for them. Out of over 100 large investments, this is the fisrt time they’ve had misgivings.

Groklaw are running an article today that suggests why that might be.

SCO recently hired a new CFO. It transpires that openness about the history of Bert Young, like so many thinks with SCO, is a bit of the stretch of the truth.

SCO said:

“Young brings to SCO a seasoned background in executive-level management responsibilities from a variety of information technology companies including worldwide finance, operations, mergers and acquisitions expertise.

“Previous to SCO, Young was the Vice President and Chief Financial Officer for LANDesk Software, where he was accountable for all financial management and reporting to company stockholders. He has also served as CFO for several other companies including Talk2 Technology, Inc. and Whittman-Hart. He was also the CIO for Chicago-based Waste Management, Inc.”

What they failed to day was that Bert Young is presently named as a defendant in the bankruptcy of MarchFIRST, a US company that went bust in 2001 amongst allegations of
corporate waste and breach of fiduciary duty.

Bert Young was (you guessed it) CFO when the 9000 employee company went titsup after the disastrous merger of two of the companies that SCO did mention: Talk2 Technology, Inc. and Whittman-Hart. And this is not old news: the most recent hearing was last week!

Can’t help wondering if hirings like this might be what BayStar are worried about!

TurboTas 2004

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