A Denver businessman who was arrested on Friday on insider trading charges e-mailed his family and friends over the weekend, proclaiming his innocence and comparing his plight to challenges faced by Nelson Mandela and Steven P. Jobs.
“No great man, woman, or company has achieved greatness without going through massive adversity,†wrote Michael Van Gilder, a Denver insurance executive.
As DealBook reported, federal prosecutors accused Mr. Van Gilder, 45, of trading based on secret information he obtained in advance of a private investment firm acquiring a significant stake in an oil and gas company. Mr. Van Gilder's lawyer, David B. Savitz, said that his client was set to be arraigned on Wednesday and would plead not guilty.
According to the indictment, Mr. Van Gilder traded in the stock of Delta Petroleum, a company based in Denver. A Delta executive was his close, personal friend, and his firm, Van Gilder Insurance, which was started by his great-gra ndfather, did business with the energy company.
The government says he traded on inside tips from the Delta executive on several occasions. In one instance cited, in November 2007, Mr. Van Gilder learned from his source that Tracinda, a California investment firm controlled by the billionaire financier Kirk Kerkorian, was planning to acquire a 35 percent stake in Delta. After hearing this confidential news, Mr. Van Gilder bought Delta stock and call options, according to prosecutors. He also tipped off relatives, sending them e-mails with the subject line “Xmas present,†the complaint says. He and those he tipped are alleged to have made more than $161,000 in illegal profits.
DealBook has obtained the e-mail that Mr. Van Gilder sent out on Saturday afternoon. The subject line is “Michael Van Gilder - Charges Against Me.â€
Here is the e-mail in full:
Saturday greetings,
If you are getting this e-mail you are a family member or a friend of mine. There is a massive amount of gossip and press as a result of my having been charged yesterday in an indictment, so I feel compelled and have wanted to reach out to you so you hear directly from me.
Yesterday was nothing short of a tough and bizarre day. Emotions included anger, humiliation, depression and gratitude. The last emotion was created by the outpouring support from family, friends and truly amazing employees at Van Gilder Insurance. For this, I am extremely humbled and thank each and every one of you for your love, friendship and support.
I never in my wildest dreams imagined I would be the cause of my employees fighting for our company and reputation. For this there is no end to my agony.
For starters please recognize that for legal reasons I cannot give you details regarding the assertions made in the indictment. I simply ask that you have faith in me, you know me, my character, and my family. This will be a grind but I'm c onfident you will see my side unfold as I strive to be exonerated.
I'm 45 years old, I've spent these years striving to build a sterling personal and business reputation, wow, did it hurt seeing what is in the press. . . .
100 years in prison and a $25,000,000 fine! Apparently reported by someone who has no clue about the federal sentencing process. While I feel I won't spend one day in jail, “if,†I were guilty of these “allegations,†then it would be months of possible confinement, not years.
As you know, I have worked very hard to become C.E.O. of Van Gilder Insurance, an amazing 107 year old company started by my great-grandfather, Hal Van Gilder. During my more than 20 years with the company, our employees have become a family to me. As a leader it's critical to recognize when change is needed. Knowing this legal situation was heating up it was critical that I separate what is personal from what is business, therefore I stepped down this pas t week as C.E.O. This indictment has nothing to do with Van Gilder Insurance; it is not named in the indictment because the company had absolutely nothing to do with any of the allegations contained in that document. This is strictly personal. I feel extremely fortunate to have a deep and talented leadership team and mature group of employees. Many of you know Don Woods, there could not be a better man to take the reins of Van Gilder. Of course my father Dell Van Gilder is our Chairman and remains highly active in the operations of our business.
By the way, I'm still working for our company and will continue to work to maintain its leadership status in our industry.
So what's an indictment? As explained to me, an indictment is purely the vehicle in which accusations are brought against an individual in federal court. An indictment is just that, it is merely an accusation. It has absolutely no evidentiary value and is not considered evidence of any charge alleged in the indictment.
An indictment is returned after a limited and selected amount of information is presented by the government attorney to a grand jury, which consists of up to 23 citizens. The grand jury meets in secret, and the government prosecutor exclusively decides who he will call as a witness in order to obtain an indictment. No judge presides over this limited presentation of evidence and no attorneys for any witness or targeted accused can be present during the grand jury proceedings. Thus, my attorney was not permitted to attend these proceedings and cross examine any witness who testified. Finally, it takes only 12 of the 23 grand jury members to agree to the returning of an indictment.
In order for me to better understand the nature and quality of evidence needed to obtain an indictment versus unanimously convicting 12 jurors at trial beyond a reasonable doubt, this is what has been explained to me. It may take the relatively low weight of a 10 â€" p ounds of selected evidence to convince 12 out of 23 grand jurors to return an indictment, but it will require the much heavier weight of a 100 â€" pounds of legally admissible evidence to convince each and every one of the 12 trial jurors to render a finding of guilt.
Until the 100 â€" pounds of evidence convinces 12 jurors unanimously of my guilt, I am presumed innocent of each and every charge in the indictment. This constitutional presumption of innocence is one of our bedrock constitutional rights. No one in the world, except the 23 grand jurors, has even heard the 10 pounds of selected evidence presented by the government, which is why I am hopeful that no one will prejudge me on the mere basis of an indictment but instead allow the judicial processes to unfold so I can have the right to my day in court. It goes without saying that I will defend this vigorously and fully expect to be exonerated.
I've been dealing with my situation for months now, I'd like t o share with you how I've made a massive mental shift in the way I look at adversity.
No great man, woman, or company has achieved greatness without going through massive adversity.
Two examples:
Nelson Mandela spent 27 years in prison before becoming president, leading the people. During that time in prison a white man taught him the white man's language. Because of this, when he was released he was able to speak to all the people, thus allowing him the ability to be elected president. When asked don't you wish you could have become President w/out the 27 years in prison? His response: NO! I needed every day to enable me to become president!
Steve Jobs founded Apple in his basement, later he was FIRED as C.E.O.! What did he do? He founded Pixar Entertainment. In the meantime Apple was spiraling down when he was asked to come back. You know the rest, Steve Jobs built the greatest company our planet has ever seen.
Through adversity comes growth, strength and determination!
Regardless of what happens to me, I am going to grow, get stronger, be smarter. I will become a better son, brother, father, friend, and leader.
You might think I'm going to stay home and hide, stay invisible? Wrong, I plan to be as visible as ever, I won't let this beat me down.
Your outpouring of support has been nothing short of amazing, I am truly blessed.
Warm Regards and Love,
Michael
Mr. Savitz, the lawyer for Mr. Van Gilder, declined to comment on his client's e-mail.
