Opinion ID: 1384382
Heading Depth: 2
Heading Rank: 3

Heading: Blackwell's direct connection to the conspiracy

Text: Sometime in late July or early August of 1999, Blackwell discussed the possible buyout of WF with his then wife, Stephans-Blackwell. The two discussed the propriety of purchasing stock in WF at that time. Blackwell told his wife that they could not purchase WF stock at that time, but when she asked whether her parents would be able to purchase WF stock, Blackwell responded that he didn't think that would be a problem. Stephans-Blackwell contacted her mother, Gertrude Stephans, and encouraged her to purchase WF stock. Blackwell was aware of this conversation. Additionally, Blackwell and Stephans-Blackwell provided her parents with $20,000 to purchase WF stock. Blackwell also informed his friend and business associate, Kahl, of the imminent purchase of WF by Kellogg and the substantial rise in WF stock that would result. Blackwell told Kahl that, if he were to decide to purchase WF stock, he should go in thinly and not buy too much because it was a thinly traded stock. [5] Kahl served on the Board of Directors for another company, Henkle, along with Blackwell. In January 2003, Kahl and other members of the Henkle Board received a letter from Blackwell stating: I also want to clarify a few facts of this situation. First and foremost, I never discussed the merger of Kellogg and Worthington Foods with anyone nor disclosed anything that can be remotely considered insider information. That is my policy at all times for all companies with which I am affiliated. Kahl questioned the truthfulness of the letter because he had personally received inside information about the WF/Kellogg buyout from Blackwell. Kahl understood the letter to express Blackwell's position in the investigation rather than a true and accurate version of the events surrounding the buyout.