Noel Forgeard, the former co-chief executive of EADS has been detained since Wednesday by French police under suspicion of insider trading. Although Forgeard has strenuously denied the accusations, investigators are unimpressed and have detained him.The Times reports that Mr. Forgeard, was due to be interviewed by the magistrate in charge of the inquiry last night. The magistrate will decide whether to place Mr. Forgeard – once the most powerful figure in Europe’s aerospace industry – under formal investigation on suspicion of insider dealing. The article goes on to state:
A report by the French Financial Markets Authority (AMF) pointed to “massive” insider dealing by 17 current and former executives of EADS and Airbus, who sold a total of 1,708,600 shares for almost €20 million.
...According to the AMF, they were in possession of privileged information about A380 production problems and should have abstained from exercising stock options.
All may be questioned by the Paris police’s financial brigade.
While the Times article does not mention it, the New York Times had already reported that one of the 17 EADS executives implicated in the scandal is none other than Ralph Crosby, head of EADS North America. Yes, that is the same EADS that is Northrop Grumman's main partner on the KC-30 tanker which was selected by the Air Force in the KC-X tanker competition.
It was probably a good idea that Mr. Crosby skipped Cannes this year. It might have been a one way trip.
[Update: Reuters now reports that last night Mr. Forgeard was officially placed under formal investigation, the US equivalent to being charged, on suspicion of insider trading.]