A recent media report details the link between failing penny stocks and Gen. Wesley Clark, who sits on the board of directors for Amaya Gaming, the parent company of PokerStars.
The report from Bloomberg details Clark’s troubling history of lending his name to companies:
Since he ran for president in 2004, Clark has joined the boards of at least 18 public companies, 10 of them penny-stock outfits, whose shares trade in the “over the counter” markets, a corner of Wall Street where fraud and manipulation are common.
All but one of the 10 lost value during Clark’s tenure. Three went bankrupt shortly after he left their boards, and the chief executive officer of one pleaded guilty to fraud.
One financial expert in the story went so far as to say Clark’s “appearance on a board is a huge red flag.”
Clark, the former Supreme Allied Commander Europe for NATO and four-star U.S. Army general, has sat on Amaya’s board since 2010 as an “independent director.”
Clearly, Amaya is not a penny stock, and certainly not all of the companies Clark have been failures. But Clark’s track record may give the shareholders of companies like Amaya pause when considering his continued presence on a board of directors. Clark was reelected to Amaya’s board just last year.