Jerome Armstrong: The Big Sleaze meets the Netroots

Jerome Armstrong, the blogger who gave us MyDD and is a co-author of a recent book on “people power” with Markos Moulitsas of the Daily Kos, has agreed to pay nearly thirty thousand dollars to the Security and Exchange Commission over allegations “that Armstrong touted the stock of a software company, without disclosing that he was being paid to do so.”

Now, as we all know, sleaze and corruption are not unique to either side of the political spectrum. But Armstrong, Kos & their netroot cronies have made a big deal out of clean government (and they should). So this kind of allegation speaks even more deeply to their ethics, as it it would for anyone in that position.

Moreover, this behavior, if true, besmirches blogging in general, harming all of us who take this enterprise seriously as a criticism of the activities of mainstream media. Armstrong has been fined nearly thirty grand, while not admitting guilt. Here is the language from the litigation release:

The Final Judgment permanently enjoins Armstrong from future violations of Section 17(b) of the Securities of 1933. The Final Judgment further orders Armstrong to pay disgorgement in the amount of $5,832, prejudgment interest of $3,235, and a civil penalty of $20,000. Armstrong consented to the entry of the Final Judgment without admitting or denying the allegations of the Commission’s Complaint, except as to jurisdiction.

Hmm…. interesting. I know I wouldn’t so quickly give up that much money – and allow the subsequent besmirching of my reputation – if I hadn’t done something very wrong.

I’ll give Armstrong the benefit of the doubt for now. But he owes us all a complete and thorough explanation of how this came to be. Otherwise, he might as well quit blogging. He and his integrity are toast.

All those followers of Kos should be especially interested in this. I hope they don’t respond defensively, because if they do, the grounds for communication between intelligent Americans will be even worse than it is. How will we be able to take their pronouncements seriously?

UPDATE: Mickey Kaus has more, including details of the allegation. Kaus also calls for Armstrong to comment. I would add to that. Kos himself should say something. Otherwise some bright people are going to start asking all those candidates who showed up at the YearlyKos whether they’re square with this kind of stock manipulation. You can call that guilt by association, but Kos demands purity of just about everyone. You reap what you sow. As of now, the Netroots are rotting.

MORE: For those unfamiliar with the ins and outs of SEC regulations (who me?), David Horwich has written an interesting explanation of this situation for Pajamas.