By Jonathan Macey — Professor, Yale Law School, Yale School of Management
Democrat Edward Markey is now the subject of an ethics complaint by a local political rival who is accusing him of manipulating the stock price of nutritional supplement and multi-level marketing giant Herbalife. Brian Herr, a Hopkinton town Selectman recently wrote to Senators Barbara Boxer and Johnny Isakson, who chair the Select Committee on Ethics accusing Markey of urging regulators at the Securities and Exchange Commission and the Federal Trade Commission to investigate the company’s stock in order to financially benefit a campaign donor who has made a big bet that Herbalife’s stock price will collapse. The alleged donor is William Ackman, who runs the $12 billion hedge fund Pershing Square Capital Management. In fact, Mr. Ackman has not donated to Markey, although he did contribute $32,400 to the Democratic Senatorial Campaign Committee in April.
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