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Home / Business / The Kodak insider stock donation raised new concerns about the company’s government borrowing

The Kodak insider stock donation raised new concerns about the company’s government borrowing



On July 29, the culmination of a recent 2.757% spike in Kodak’s stock, a member of the company’s board of directors, George Karfunkel and his wife, donated 3 million shares of Kodak – worth more. 100 million dollars at that time – for a synagogue. is known as the Chemdas Yisroel Inc. Union, according to a securities filing. Synagogue is registered as a charity in New York State.

The donation, which is likely to be claimed as a tax deduction, comes as Kodak’s stock is booming on news that the company will receive a $ 765 million loan from the government. US to help manufacture medicinal ingredients.

The timing of the announcement and the issue of certain executives̵
7; stock options spurred federal scrutiny. House Democrats have requested documents and information on the matter from Kodak, according to a letter sent last week.
Magazine and Mother Jones reported for the first time about Karfunkel’s donation.
Kodak said in a stock filing Friday that an internal review by an outside law firm will examine performance related to a potential loan. The company said a special committee of independent directors will oversee the internal review.

A Kodak spokesperson told CNN that Karfunkels’ donation is “within the scope” of that review. Cannot contact Karfunkels for comment.

The Kodak website describes George Karfunkel as an expert in financial planning and investment strategy who has served on the company’s board of directors since 2013.

On the day of his and his wife’s fundraising, Kodak’s shares hit as low as $ 17.50 a share and as high as $ 60, meaning the donation could be worth more than $ 100 million. .

On Friday, the agency behind the loan said that the deal would be postponed. “The recent allegations of misconduct cause serious concerns,” tweeted by the US International Development Finance Corporation. “We will not proceed further unless these allegations are removed.”
On Monday, Kodak shares temporarily slowed after falling 43% earlier in the day.

Laurie Styron, chief executive of CharityWatch’s nonprofit, describes the situation regarding Karfunkel’s donation as disturbing. His position on Kodak’s board of directors may have given him “exceptional knowledge that allows him to predict possible fluctuations in Kodak’s stock price,” she said.

She also said many charities and religious organizations offering tax deductions have controls to prevent the occurrence of improper behavior.

“Given that Karfunkel has a foothold in both Kodak and in the stock-sponsored religion, it is not clear whether there is enough board independence for the donation to be checked and unequivocal,” Styron said. properly approved before being accepted or not ”.

The New York charity profile from 2019 depicts the Chemdas Yisroel Congregation as an Orthodox synagogue using dedicated funds for religious, charitable and educational purposes. The documents listed George Karfunkel as the church president.

Representatives of the Chemdas Yisroel Congregation could not be reached for comment.




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