Ex-Eli Lilly Executive involved in Insider Trading Scandal

State Subpoenas 30 Business Elite

http://www.indystar.com
May 7, 2003

INDIANAPOLIS -

"...A "who's who" of the Indianapolis business community is being issued subpoenas from state regulators involving the sale of shares in IPALCO Enterprises around the time the utility company was bought by AES Corp. in 2001.

Corporate governance is in the spotlight these days. It's pretty clear that this was an example of bad corporate governance.

They include former IPALCO director Mitch Daniels, a former Eli Lilly and Co. executive who is now President Bush's budget director. Daniels, who sold about $1.45 million in IPALCO stock in January 2001, on Tuesday announced he is resigning the federal post, leading to speculation he will run for governor here.

Other key insiders being issued subpoenas are former IPALCO chairman John Hodowal and former vice chair Ramon Humke. Directors include former Bank One Indiana chairman Joseph D. Barnette Jr. and Anthem Chairman L. Ben Lytle.

About 2,000 IPALCO employees alleged in the suit filed Friday in U.S. District Court in Indianapolis that the insiders "dumped" $71 million worth of stock in the Indianapolis electric utility, in part because they saw trouble ahead with AES' stock price, which later tumbled..."

Eli Lilly, which made $1.6 million of political contributions in the last election cycle, has strong ties to the Bush administration. Bush's budget director, Mitch Daniels, formerly worked at Lilly; the company's CEO, Sidney Taurel, sits on the Presidential Homeland Security Council; and the president's father, George Bush, sat on Eli Lilly's board of directors.

Eli Lilly runs a monopoly. Narcotics such as cocaine and heroin cannot be manufactured without the precursor chemicals. One of the largest makers of these precursor chemicals is the Eli Lilly Company of Indianapolis, Indiana. The Quayle family is a large stockholder, and George Bush has been on the Board of Directors. Eli Lilly is also the company that first synthesized LSD for the CIA.

After leaving the CIA in 1977, Bush was made director of Eli Lilly by none other than Dan Quayle’s father and family, who owned controlling interest in the Lilly company and the Indianapolis Star. Dan Quayle later acted as go-between for drug kingpins, gun runners, and government officials in the Iran-Contra scandals.

The entire Bush family were large stockholders in Lilly, Abbott, Bristol, and Pfizer, etc. After Bush’s disclosure of assets in 1979, it became public that Bush’s family still had a large interest in Pfizer and substantial amounts of stock in the other aforementioned drug companies.

In fact, Bush actively lobbied illegally both within and without the Administration as Vice President in 1981 to permit drug companies to dump more unwanted, obsolete, or, especially, domestically-banned substances on unsuspecting Third World countries.

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printed from Ex-Eli Lilly Executive involved in Insider Trading Scandal on 2004-05-31 00:04:22