The U.S. Securities and Exchange Commission has launched a
formal investigation into certain stock trades by Arizona-based Swift Transportation and some company
insiders, including Chairman and CEO Jerry Moyes, the company announced
Previously, the SEC had been engaged in an informal inquiry
into the stock trades.
In a company news release, Swift officials indicated that
the investigation was focusing on some of Moyes stock trades and certain company stock
repurchases. The company had announced earlier that the SEC had started the
Swift operates a large truckload fleet that includes a
significant number of owner-operators, including many OOIDA members.
According to John Nester, an SEC spokesman, an informal
inquiry is a preliminary step taken by SEC officials in which they gather or
receive information that can cause staff to initiate an formal inquiry.
A formal investigation – technically called “a formal order
of investigation” – is when SEC officials authorize their staff to “expend the
necessary resources and time to determine whether securities laws have been
During such an inquiry, the SEC can give its investigators
the power to subpoena people or documents.
Nester said SEC officials cannot officially confirm or deny
any specific investigation, and would not confirm whether Swift or Moyes were
the subject of an SEC inquiry.
– By Mark H. Reddig, associate editor