AP: Allen Failed to Report Stock Options

Sen. George Allen, R-Va., speaks at the 2006 "Values Voter Summit" in Washington in this Sept. 22, 2006, file photo. (AP Photo/Kevin Wolf) (Kevin Wolf - AP)

Commonwealth granted Allen options on 15,000 shares of company stock at $7.50 a share in May 1999, company chief executive Robert Harris said.

The company's stock has a history of wild fluctuations, typically rising after new government contracts. It hit $9 to $10 a share the month after Allen left the board. It has been closer to $2 recently.

Commonwealth usually gives departing directors just 90 days to exercise stock options, but Allen's were extended until as late as May 2009 because he was entering public service, Harris said.

When Allen left for the Senate, Commonwealth made clear it hoped he would help the company in his new job. "We, of course, wish him much success in Washington and look forward to his pro-business agenda reaping benefits for CBI, the commonwealth and the nation," company chairman Richard Freer said.

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HELP FOR XYBERNAUT

Both Commonwealth and Xybernaut have suffered through difficult times and federal contracts have been an important financial lifeline in recent years.

Allen's office acknowledges he has met socially over the years with company executives and his office has granted "routine courtesy meetings" from company lobbyists "to hear their opinion on legislation and issues before the federal government."

Reid said he is aware of only one time that Allen's office helped any of his former companies. That came in December 2001 when Allen asked the Army to resolve a lingering issue with Xybernaut. The company asked Allen to intervene, and he urged the Army to give Xybernaut an answer, Reid said.

At the time, Allen still owned options to buy 110,000 shares of Xybernaut stock, which could be affected by any new federal contracts.

The Army answered but did not give Xybernaut what it wanted, and Allen did nothing more, Reid said. The office declined to release the correspondence, saying constituent letters are confidential.

Allen himself said he could not recall helping, and only met former company associates socially. "Whether I see a former _ whatever the question is _ personally at some social event or political event over the years, so what?" Allen asked.