The firm was in financial trouble until another company, a distressed oil properties specialist, Harken Energy, purchased Spectrum 7 in 1986.
Part of the attraction for Harken's management to purchase Spectrum 7 was having Bush on its board — his father was then vice-president, he had extensive political connections and knowledge of the oil and gas business.
[1] As team owner, the popularity derived from his public persona lead to the invitation to run for governor of Texas and ultimately, two terms as president.
The sale of the large block of shares had become widely publicized and allegations of the use of insider information, and improper stock transactions, were leveled at Bush.
Additionally, and in an unusual move, Bush waived client-attorney privileges so the attorneys could be questioned, in order to leave no remaining doubts on the subject.
The SEC report read, "In light of the facts uncovered, it would be difficult to establish that, even assuming Bush possessed material nonpublic information, he acted with sentience or intent to defraud."
Newspapers have alleged that though the law requires prompt disclosure of insider sales, Bush neglected to inform the SEC about his transaction until 34 weeks had passed.
The Center for Public Integrity said of this episode - "The documents from the SEC inquiry show that Harken Energy engaged in questionable accounting practices as they attempted to stave off a financial crisis in 1989 and 1990.
Ultimately, the SEC required the company to correct its financial reports, but concluded there was insufficient evidence to pursue an insider trading case against Bush.