Swift says feds investigating company, CEO

| 10/5/2004

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 recently.

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 informal investigation.

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 violated.”

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
mark_reddig@landlinemag.com