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Allied Capital Subpoenaed By US Attorney

by: Herb Greenberg February 07, 2007 | about stocks: ALD    
Herb Greenberg

Herb Greenberg

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Allied Capital (ALD) issued a press release yesterday saying that it had received a subpoena from the US Attorney for the District of Columbia "regarding the use of private investigators by Allied Capital or its agents." The company then said that it "has become aware that an agent of the company obtained what were represented to be telephone records of David Einhorn and which were purported to be records of calls from Greenlight Capital during a period of time in 2005."

The press release said nothing about my own records or those of sources on Allied, which were taken in 2004. I've written about this extensively, most recently on Nov. 8 following a New York Times story outlining allegations by Einhorn that his home phone records had been broken into in 2004 -- not to be confused with the 2005 break-in of Greenlight's records. [Ed. note: Additional posts on this issue can be found here and here.]

According to the Times, the head of Allied's audit committee, responding to a letter from Einhorn, told Einhorn that the board had "looked into" his allegations and found "no evidence to support your claim."

I followed up with my own call to Allied, which had dodged my questions on the subject for several years. I was told by a spokesman that the board also looked into my allegations and "they saw nothing to support those allegations."

Now the company is acknowledging that it became aware that one of its agents got records of Einhorn's calls from Greenlight in 2005. The obvious question: Anything else in the subpoena? A spokesman hasn't returned my call.

UPDATE: A spokesman says the company won't comment beyond the press release.

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This article has 1 comment:

  •  
    Mar 04 12:40 PM
    NEW, A company Herb has not written about that happens to have David Einhorn (ALD detractor) on its board of directors that is in significantly more legal trouble than ALD. Now that Einhorn has lost his credibility as a source of non-stories for Herb we wonder if we will see more ALD stories

    Pulled from the headlines...
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