Rex Shelby Sentencing 4.3 – How Rex Is Like Rick Causey

Rex Shelby’s plea agreement basically states that the BOS software was not complete during the January 20, 2000 analyst conference.

He states (though he’s lying) that he knew that the software was not complete, yet some of the presentations on that day may have left the impression that it was complete. That is the “inside info” that he used supposedly used when he sold his stock.

Note that it was the first stock sale of his entire life. He’s never owned a share of any other company. He didn’t like the stock market, reasoning that he’d rather invest in his own companies, and so he got rid of his stock as soon as he could responsibly do so. He and his friend and business partner Larry Ciscon sold their shares at the same time.

Generally we think of inside trading as being a very greedy sort of crime. But get this: the government stipulated at sentencing that Rex Shelby did not enrich himself when he sold his stock.

So if he didn’t enrich himself, why did he do it?

The short answer is, he didn’t. He pleaded guilty because he ran out of funds to defend himself. The fact that the government agreed that his supposed crime didn’t even benefit himself should put to rest any notion that he is, in fact, guilty.

This reminded me of Rick Causey’s sentencing when his lawyer said that he was guilty but he really believed that everything he was doing was legal and proper – and the government seemed to agree.

Rex Shelby’s case is proof positive that the DOJ is in the business of convicting people, not doling out justice. Rex Shelby is honest as bean stew. If he had the money to keep fighting, I’d be reporting about his trial right now, not his sentencing from a plea agreement.

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