Tuesday, October 10, 2006

Fristed Macaca


Oct. 10 (Bloomberg) -- Stock options that Senator George Allen described as worthless were worth as much as $1.1 million at one point, according to a review of Senate disclosure forms and U.S. Securities and Exchange Commission filings.

The records appear to contradict remarks he made to the Associated Press. ``I got paid in stock options which were worthless,'' AP quoted him as saying.


In 2001, Allen's first year in the U.S. Senate, the company's share price recovered to $5.46 on May 25, which would have valued 110,000 options at $71,500 before commissions and other brokerage fees. Some of the options exceeded their strike price as recently as July 2004.

Allen wrote a letter to the U.S. Army on Xybernaut's behalf in December 2001, AP reported, citing John Reid, Allen's spokesman, who told AP he wouldn't disclose the contents of the letter. In September 2003 the U.S. Defense Department announced $2.13 million in contracts to buy the company's wearable computers.