John Abele co-founded the medical device maker Boston Scientific. According to the latest Forbes 400 list, he is worth $1.5bn. But that number will have to be revised, because on Thursday the company made the following press release:
I don't know the full details but I think I can read between the lines: Abele and his children's trust owned securities on margin, the collateral of which included shares of Boston Scientific. The margined securities, whatever they were, went down and Abele received a margin call. He was forced to sell shares as a result.
Why a 71-year old billionaire feels the need to own securities on margin is something I don't understand. Why he feels the need for his children's trusts to do the same is something I really don't understand.
Judge Putnum would not approve. He'd probably order Abele to remove the word "Boston" from his company's name, lest it tarnish that city's historical reputation for prudent capital management.