Table: Back in the Oil Patch
George W. Bush sells his stake in oil drilling outfit Spectrum 7 for $600,000 worth of Harken Energy shares. Unlike most other officers of companies that Harken acquires, Bush becomes a Harken director and sits on the board audit committee.
Harken sells its Aloha Petroleum subsidiary to major Harken stockholders for $1 million in cash and an $11 million note. Harken books $8 million profit on the sale, despite the IOU.
MAR. 30, 1990
Harken reports an '89 loss of $3.3 million.
JUNE 22, 1990
Bush reaps $849,000 by selling 212,140 Harken shares at $4 a share. He previously had filed a Form 144 notifying the SEC of his intention to sell shares.
JUNE 30, 1990
Harken calculates a second-quarter loss of $23.2 million, eight times the loss in the year-ago quarter. When Harken reveals this in August, share price plummets to $2.38 but bounces back to $3 next day.
The SEC forces Harken to restate its '89 earnings, thus adding more than $9 million to a reported loss of $3.3 million.
MAR. 4, 1991
Bush files Form 4, notifying the SEC of his stock sale as a company insider, 34 weeks later than SEC rules dictate. While campaigning for Texas governor in 1994, he blames the late filing on the SEC, claiming regulators misplaced the form.
The SEC opens an insider-trading investigation against Bush. An internal SEC memo notes he repeatedly failed to file on time.
The SEC closes the probe, based on an Enforcement Div. finding that, despite his audit committee seat, Bush didn't have early notice of most of the information in Harken's second-quarter earnings report when he sold stock.
JULY 3, 2002
The White House says Bush misspoke when he blamed the SEC for his late forms. Bush spokesman now says the delay was due to a "clerical mistake" by lawyers.