McCain's Close Aide Faces SEC Scrutiny

Swamp: If the Arizona Republican needs an illustration of how the regulatory apparatus is supposed to work, he now has an example close at hand. Last Friday, the SEC suspended trading in shares of e-Smart Technologies Inc., a troubled penny stock that counts one of McCain's closest advisers, Charles Black, as a consultant and director.

The bill of particulars against e-Smart lends credence to the critique that it takes a lot to incur even a modest sanction from the SEC.

According to a commission order, trading in e-Smart shares has been suspended until October 30 because the company failed to file required reports and because of questions about the accuracy of a major sales announcement and possible sale of unregistered securities. read the rest