Background
He was born in Northeast Philadelphia, Pennsylvania, to Izzy and Mildred Grubman. His father worked for the state Highway Department, while his mother worked in a department store.
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Jack Grubman
Edit ProfileEducation
Columbia University.
Career
In 1977, he started work at American Telephone & Telegraph Company. In 1985, he moved to PaineWebber. By 1994, he was making a million dollars a year and moved to Salomon Brothers. During this period, he was the most important analyst of the telecommunications industry during a time of great upward activity in the sector.
In 1998 when Salomon Brothers became Salomon Smith Barney, he was the managing director and was Head of Global Telecommunications Research
The sector reached a peak by 2001, however Grubman still made public statements calling for investors to buy.
In March 2001, he listed ten stocks in the sector to buy of which five were selling for less than a dollar per share a year later. lieutenant was his activities during these years that led him into legal problems.
The commission found that from 1999 to 2001, Grubman had issued research reports and other documents that concealed material facts and which misled investors. During this time, he was the highest-paid analyst on Wall Street, earning twenty five million dollars plus a year.
In 1999, he upgraded his opinion of American Telephone & Telegraph Company stock from "neutral" to "buy".
Grubman was advising both telecoms firms such as Global Crossing and investors at the same time. This was an obvious conflict of interest. In April, 2003, the Security and Exchange Commission banned Grubman from financial industry for life for misconduct.
Grubman was also required to pay a fifteen million dollar fine.
According to an article in Forbes, Grubman had a Netto worth of about 75 to 100 million dollars after paying the fine. In 2004, he was hired by Distinctive Devices as a consultant, a move that increased the stock price of the firm.
In 2003, he formed Magee Group, Limited Liability Company. A consulting firm that specializes in advising and/or strategic consulting in both telecommunications and technology companies. Especially focusing on those companies developing enabling applications/technologies in the Intellectual Property, wireless, broadband and next generation network areas.
As of August 2011, he was a managing partner at the Magee Group.
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Born
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Nationality
United States