Carpet Cleaner Takes Down MGM CEO

While deflation has been gripping the headlines, resume inflation continues to rage on. Beware of CV's from Wall Streeter's who dramatically overstate their previous roles as they look for jobs in the months ahead. In my experience they often pad their responsibilities and often get themselves into positions they cannot ultimately handle.

But the CEO of MGM Mirage has served the company as Chairman for 13 years, a tenure that would seem to indicate some measure of competency. But Terry Lanni is stepping down after a report issued by an investigator that indicated Lanni did not earn his MBA from USC, as he claimed:

The discrepancy was uncovered by the Fraud Discovery Institute, a group co-founded by Barry Minkow, who served more than seven years in prison, from 1988 to 1995, after being convicted of fraud while running a company called ZZZZ Best Co.

Lanni served as chairman for more than 13 years, expanding the company from one property in Las Vegas to 17 resorts in the U.S. and internationally, the company said. Lanni oversaw MGM Grand Inc.'s combination with Mirage Resorts in 2000 and Mandalay Resort Group in 2005. The company had $7.69 billion in revenue last year. Bloomberg

MGM is downplaying the news, claiming the usual reasons for Lanni to move on. But these hand-offs are usually better telegraphed, and it would appear Minkow's findings play some role in his departure.

MGM’s stock has been crushed with all the gaming stocks, and the timing of Lanni’s departure is unfortunate for the company, who could use an experienced hand at the tiller. MGM has a steep road ahead of them, but perhaps Lanni decided life is too short to spend the next three years battling back fro the brink.

Is the issue a while lie that took on a life of its own? While you cannot condone it, Lanni must have been up to the job over the years, and any character issues with him have been non-existent.

But it is a helluva way to part ways, and a footnote to what has been one of the more extraordinary periods for US style Capitalism.

A few years ago this would have been one of the more unlikely events you could have predicted would come to pass, but Barry Minkow has been hell bent to make up for his past sins, and now has another feather to put in his cap.

MGM Chief Lanni Retires Amid Education Questions
Bloomberg

MGM Mirage CEO Resigns Amid Questions About MBA
WSJ

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