Zeev's Turnips Patch-No Politics (ZEEV)

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SHOCK STOCK PROBE (smut-jock Stern insider trading suspected)
NY POST ^ / February 19, 2005 / TIM ARANGO

The SEC has launched an insider-trading probe of shock jock Howard Stern's deal to join Sirius Satellite Radio.

In the two weeks running up to the blockbuster announcement last October, Sirius stock soared nearly 40 percent........the feds want to determine if someone who knew the deal was coming started buying up stock in anticipation of shares skyrocketing when the news got out.

When Sirius made the surprise announcement, the stock jumped another 15 percent.

Yesterday, New York gossip journalist Chaunce Hayden, a frequent guest on the Stern show, received a subpoena from the SEC.

He was told he needs to appear before the SEC on Wednesday to answer questions about what he heard in Stern's studio around the time of the Oct. 6 announcement that Stern was leaving free radio for Sirius.

The subpoena is seeking information about "trading in securities of Sirius Satellite Radio," according to a copy obtained by The Post.

Stern, extremely frustrated by an ongoing battle with the FCC over his show's content, was lured to Sirius with a five-year, $500 million package for him and his team. It's unclear exactly what Stern's cut of that is, but he currently earns some $31 million a year, Forbes has estimated, and the Sirius deal is believed to top that.

The deal was hailed by some at the time as one of the most important in media history because it instantly legitimized the upstart satellite radio industry.

However, Stern has used his show to constantly plug Sirius, infuriating Infinity bosses and spurring speculation he may leave and join Sirius earlier than planned.

Sirius followed the Stern announcement in November by naming former Viacom honcho Mel Karmazin as its CEO.

Shares of Sirius initially shot up about 20 percent at the time of the Karmazin announcement.


(Excerpt) Read more at nypost.com ...