TheStreet.com, Cramer Get Subpoenas in Gradient Probe
Updated from 6:01 p.m. EST
A regulatory investigation into allegations of collusion between short-sellers and a stock-research firm has led to the serving of subpoenas on TheStreet.com (TSCM) and its co-founder and major shareholder, James J. Cramer.
Both TheStreet.com, which publishes this Web site, and Cramer, who writes a column on its RealMoney subscription site, have objected to the government's demands for communications between journalists and their sources.
The subpoenas are related to a Securities and Exchange Commission investigation into allegations that Gradient Analytics, an Arizona stock-research firm, published bearish research reports at the behest of a group of short-sellers, including Rocker Partners, a minority owner of TheStreet.com.TheStreet.com is the second news organization to acknowledge receiving subpoenas in the investigation. Last Friday, Dow Jones (DJ) confirmed that two of its reporters had received SEC subpoenas. The actions sparked controversy, and on Monday, SEC Chairman Christopher Cox sought to distance himself from the unusual investigative move. Cramer, meanwhile, disclosed the subpoena on his "Mad Money'' television show on CNBC Monday night. Through its general counsel, Jordan Goldstein, TheStreet.com disclosed that it, too, received an SEC subpoena. A spokesman for CNBC said the network did not receive a subpoena. Goldstein said TheStreet.com won't comply with parts of the subpoena that demand communications between journalists and sources. SEC spokesman John Nester declined to comment on the subpoenas, noting the commission doesn't "discuss individual enforcement matters.'' Still, it's possible the issue could be moot. The SEC has indicated it has no intention of enforcing the subpoenas at this time. On Friday, the SEC began to back away from the subpoenas, after lawyers for Dow Jones said they would not comply with them. The SEC subpoenas to the Dow Jones employees had a Friday compliance date. SEC Chairman Cox, on Monday, took the unusual step of rebuking the SEC's staff attorneys for filing subpoenas on two Dow Jones reporters without first consulting him or the other top commissioners. Cox issued a statement saying neither he nor any of the SEC's four other commissioners were aware of the subpoenas, which he called "highly unusual.''
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV