The Collected Works of Daniel Loeb, Part VI

In a recent conference call with beleagured executives at contract research organization (CRO) SFBC International, hedge fund manager Daniel Loeb of Third Point was gob-smackingly aggressive. The transcript follows, and I have put the two minute audio snippet here (in mp3 format):

Operator

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Daniel Loeb, ThirdPoint.

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Daniel Loeb, ThirdPoint – Analyst

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Hello. This is Daniel Loeb with ThirdPoint. Congratulations on addressing all the issues raised in the Bloomberg article. You guys obviously did an outstanding job. I had a question about Mr. Seifer. It appears that Mr. Seifer is possibly some sort of rogue employee out there behaving inappropriately with patients and I understand you’ve taken some action.

Were you also aware of the fact that Mr. Seifer has been sanctioned by the SEC in connection with his involvement with commodity trading at SLS Trading and by the FCC and FTC in connection with fraud committed with Gerald WIRELESS and Applied Telemedia? And finally, are you aware that Gerald Seifer and Lisa Krinsky [ed. SFBC President] own a home, a Bentley and a Rolls-Royce together and are probably either husband and wife or common-law husband and wife?

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Unidentified Company Representative

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Let me respond in this way. We were aware of Mr. Seifer’s background with respect to regulatory authorities, it happened many years ago. We were aware — we know that it did not include any broad allegations and that it is well beyond the period of concern. In addition to that, Mr. Seifer has been a very valuable and loyal employee. He has performed those tasks assigned to him appropriately. We’ve had a long history with him and I really don’t have anything much further to –.

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Daniel Loeb, ThirdPoint – Analyst

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So you’re telling me that you have a person in charge of legal affairs, that’s been sanctioned by the CBOT, the FTC and SEC and you’re comfortable that in a heavily regulated industry such as the CRO industry that that’s an appropriate person to have doing that? I beg to differ and I also would like you to go through and look at the way that Mr. Seifer has been effectively — potentially washing personal sales of stock through his relationship with — and I use the term loosely — Dr. Krinsky whose medical degree she earned apparently from a mail-order institution in the Caribbean?

I look forward to your Company’s meltdown as your customers discover what’s really going on behind the scenes here.

Related posts:

  1. The Collected Works of Daniel Loeb, Part I
  2. The Collected Works of Daniel Loeb, Part V
  3. The Collected Works of Daniel Loeb, Part III
  4. The Collected Works of Daniel Loeb, Part IV
  5. The Collected Works of Daniel Loeb, Part II

Comments

  1. David Martin says:

    No doubt Loeb is a super sharp guy, but in SFBC’s case I don’t see how this pidley little shit could melt down a company.
    It’s a problem nothing a couple of pink slips couldn’t fix.
    Accounting irregularity’s, falsified data… REAL problems like those could bring down the company.
    But rouge employee with a shady past, a nasty temper (and probably only on the payroll because he is Lisa’s man-whore, a non-lawyer that’s VP of legal, unreal)… destroy a company?
    One thing’s a given hower, handing Siefer’s head on a platter to Loeb would jump the pps 3pts, putting a smile on everyone’s face… especially this SFCC shareholder.

  2. Kevin Ness says:

    Loebs allegations are not what brought down the company (nor is SFCC’s future written off). See the several Bloomberg articles as the source of the devestation… (most recently http://www.bloomberg.com/apps/news?pid=10000082&sid=a9SVD66qyqE0&refer=canada)
    Plus revelations about structural deficencies at the Miami facility, brought the stock down about 26% in early November.
    Loeb’s comments merely served to further piss off an already furious investor and analyst base. Besides, don’t take Loeb’s statements out of context…the entire call is hostile….amazing. Crisis Manager?? Unusual option market activity?? Plus the Loeb conflicts?? (I wonder if Loeb is short and is smiling (and responsible for the bloomberg articles), or was long and is a victim)
    Pretty entertaining. The real question is whether the underlying business is toast due to these reputational wounds…. only time will tell; however, I hear ppl talking about a mkt cap below book…

  3. Edwin Lefevre says:

    Au contraire, the stock top ticked around 19 around the time Mr. Loeb commenced his rant and has continued its death spiral ever since as the public learns more about the dubious backgrounds of Seifer, Krinksy and others involved in the company. My guess is that if the company had been permitted to present its supposedly exoneraring insider report, untested, that the stock would remain in the high teens/low 20s.
    Ed

  4. jerry sutton says:

    SFCC’S PROBLEM IS ONE OF INTEGREITY AND THEN, TRYING TO COVER UP THE PROBLEM BY WORD-SMITHING. INSTEAD OF NITPICKING BLOOMBERG ON CANADIAN PROBLEM THEY SHOULD HAVE STOOD UP AND ACKNOWLEDGED THAT THEY FAILED TO FOLLOW THE DIRECTIONS OF COMPANY THAT HIRED THEM. HAD EVERYONE BEEN TESTED FOR TB PER DIRECTIONS, PROBLEMS IN CANADA WOULD HAVE BEEN AVERTED. MY QUESTION IS “WHERE IS BOARD OF DIRECTORS”A AND WHAT ARE THEY DOING, IF ANYTHING? I AM A VERY DISAPPOINTED STOCKHOLDER.

  5. Joseph Gentile says:

    If you bought SFCC stock and lost money on it, you may be entitled to damages in a possible lawsuit, even if you have not sold the stock. Please contact me for more information.
    Joseph Gentile, Esq.
    SARRAF GENTILE LLP
    485 Seventh Avenue, Suite 1005
    New York, NY 10018
    T 212.868.3610
    F 212.918.7967
    joseph@sarrafgentile.com
    http://www.sarrafgentile.com

  6. Jason Arnold says:

    Sarraf-Gentile:
    Stop scamming you Fscks
    someone please charge sarraf-gentile for market manipulation

  7. Geoffrey MacFarland says:

    As a revisit, Loeb’s comments appear to be correct, SFBC as we knew it is indeed dead, Miami is closed and soon to be bulldozed. Next month a name changed will be announced to Pharmanet, the private company they purchased in late 2004 for $250mill. Assuming they value the other remaining substantial segment, Anapharm of Canada for the $27mill or so they paid for it….the company trades at around this $275million of self proclaimed “good will.”
    Since the bulk of the value is Pharmanet, only its earnings, previously largely hidden will justify the $15.00 price tag, or prove that Seifer/Krinsky etal overpaid for the deal.

  8. Ed Brian says:

    It seems as if SFBC is gone and done with but Jerry Seifer who threaten, abused,humiliated,
    attacked, etc. subjects is now on the run…
    Jerry you thought you would win against me, remember? it was your aggression toward me
    you tired of trying to hire a subject to be un-thruthful about me? oh poor Jerry so did the subject inform that it was a wall that got hit? Jerry will know what this all means…Jerry I win your out and on the run, so your not as good as you said…haha..Thank you Jesus Rodrigues, Stacy,i go-on but whats the use… I win

  9. Ed Brian says:

    It seems as if SFBC is gone and done with but Jerry Seifer who threaten, abused,humiliated,
    attacked, etc. subjects is now on the run…
    Jerry you thought you would win against me, remember? it was your aggression toward me
    you tired of trying to hire a subject to be un-thruthful about me? oh poor Jerry so did the subject inform that it was a wall that got hit? Jerry will know what this all means…Jerry I win your out and on the run, so your not as good as you said…haha..Thank you Jesus Rodrigues, Stacy,i go-on but whats the use… I win

  10. Ed Brian says:

    It seems as if SFBC is gone and done with but Jerry Seifer who threaten, abused,humiliated,
    attacked, etc. subjects is now on the run…
    Jerry you thought you would win against me, remember? it was your aggression toward me
    you tired of trying to hire a subject to be un-thruthful about me? oh poor Jerry so did the subject inform that it was a wall that got hit? Jerry will know what this all means…Jerry I win your out and on the run, so your not as good as you said…haha..Thank you Jesus Rodrigues, Stacy,i go-on but whats the use… I win