Fox News has fired paid contributor and market analyst Tobin Smith for receiving compensation to promote the stock of Petrosonic Energy, a violation of network policy. According to a Media Matters review, Smith’s company, NBT Equities Research, also received compensation for promoting numerous other companies through his website and conservative newsletters, and used his Fox News credentials to hawk volatile stocks to conservatives.
MarketWatch’s Chuck Jaffe reported that Smith issued “sponsored investment research” to tout Petrosonic’s stock in a 20-page mailer, for which NBT received $50,000. The paid endorsement is against Fox’s policy that “no contributor to FBN [Fox Business Network], nor his/her firm, and/or family members are allowed to accept financial consideration of any kind whatsoever to issue research, advertisements, or to otherwise promote individual stocks or securities.” In a post today on his website, Smith acknowledged that he is “no longer a Fox contributor” but defended his “business of sponsored research for uncovered emerging growth companies.” He also wrote: “For the record, my last contributor agreement with Fox News did NOT include any exclusion from me or my company sponsored research. But that is water under the bridge.”