|"Shady" Leonard was Indicted for perjury but not convicted|
Michael Arlen Davis may not have earned a Harvard degree, but he appears to have learned well his lessons from the "Leonard Davis School of Business and Charity."
As detailed in publicly available court documents, chairman Davis is accused of:
- Forming an undisclosed investment group and secretly accumulating Cyan public stock with close long time partners Rudolph Steiner Foundation
- Running Cyanotech for his own benefit while ignoring the interests of other shareholders
- Entrenching himself as Cyanotech's chairman with a captive Board of Directors.
- Further entrenching his control by replacing Cyanotech's corporate law firm with his own law firm, the very same law firm that he used to create the supposedly charitable network of nonprofit entities used to obscure public/regulatory scrutiny of his activities.
"Although the Colonial Penn companies were theoretically separate from AARP, Davis, to protect his marketing bonanza, wrapped Colonial Penn tentacles firmly around every aspect of the operation. According to a 1977 lawsuit by former executive director, Harriet Miller, Davis had carefully insulated the board from AARP's financial operations, and at the same time he had made them almost utterly dependent on Colonial Penn. Contracts drafted for AARP by lawyers close to Davis, for example, delegated the right to select insurance carriers for AARP and NRTA members to a private company called National Association Plans Inc - a subsidiary of Colonial Penn.
In the early 1970s, Davis shored up his control by introducing a new law firm as AARP's outside counsel. The firm, which went through several name changes, maintained offices in the same Madison Avenue building that house Colonial Penn's New York offices, ARRP's local offices, and Davis's personal offices and those of the Davis Family Foundation."