Between 1999 and 2006, John Mackey, Whole Foods Market’s C.E.O., anonymously posted more than 1,000 comments on a Yahoo stock market forum slamming competitor Wild Oats Market while praising his own company. The comments were posted during an attempt by Whole Foods to acquire Wild Oats, when knocking Wild Oats could have had the advantage of lowering its share price. Mackey’s antics were revealed this summer in a footnote to a court document filed by lawyers for the Federal Trade Commission as part of its suit to prevent the company’s acquisition of Wild Oats. (The acquisition closed in August, despite the brouhaha.)

Though the S.E.C. doesn’t explicitly forbid such actions—there’s not exactly a name for such online maneuvering by C.E.O.’s—Whole Foods has confirmed that there is an ongoing S.E.C. investigation, a fact that the S.E.C. will neither confirm nor deny. Experts say that the S.E.C. is likely investigating simply to determine what the crime would be, before deciding whether they can charge Mackey with anything. Among the probable alleys of inquiry is whether Mackey made any “material misstatements,” including half-truths, in his postings, or manipulated the stock price in his attempt to take over Wild Oats.

No charges have been leveled against Mackey, and just last week, Whole Foods closed its own investigation, declining to reveal its findings but reaffirming the company’s support for Mackey.

What should you do if you post anticompetitive or company-touting messages on the internet—and get caught?
 
1. Apologize . . . to Everyone, Immediately
The first action you must take is to issue a public apology to everyone concerned: employees, shareholders, the media (who may have even reported on the postings, thinking they were authentic), and anyone else caught up in the situation. The power of a public apology is enormous, but it has to happen right away. Mackey offered a mea culpa about a month after the offense was revealed—a quick turnaround, considering he’d been posting for seven years—saying, “I sincerely apologize to all Whole Foods Market stakeholders for my error in judgment in anonymously participating on online financial message boards. I am very sorry, and I ask our stakeholders to please forgive me.”

2. Request an Investigation
If you posted online often, it’s possible that you may have written something you legally shouldn’t have. Public relations professionals advise being proactive by requesting an investigation after your postings become public knowledge; inevitably, the board will do so anyway. Your beating them to it will play well in the court of public opinion (sinners who repent get a second chance) as well as with certain regulators (the S.E.C., for example, makes special allowances for companies that are open with their problems). In the case of Whole Foods, the company began an internal investigation after the postings came to light, but it isn’t known whether it was at Mackey’s request.

3. Check Your Insurance Policy
Make sure that your insurance (generally given through your company as directors and officers insurance) covers you in the event of shareholder lawsuits triggered by negligent conduct, misrepresentation in financial disclosures, or plain old bad judgment. This situation probably falls under the latter category. While directors and officers insurance should cover your defense if you are accused of fraudulent activities, you’ll probably have to reimburse the insurer if you are found liable.

4. Recuse Yourself
If you’ve been posting online about a merger or any other deal you’ve helped negotiate, recuse yourself from further involvement. It has yet to be determined whether what Mackey was doing was illegal—whether he posted intentionally misleading information—but recusing yourself is a face-saving move. For a C.E.O. to behave this way is unsettling to investors. By recognizing the need for a brief time-out, you may help restore their confidence.

5. If All Else Fails, Resign
This is not only for your own reputation, but for that of the company. Your former employer will be able to move past the scandal, while you can reestablish your public persona after a suitable period of penitence. Tell-all memoir or 60 Minutes interview, anyone? While Mackey hasn’t resigned, and it’s unclear if he will, experts believe it would be better for the company if he did, especially because of Whole Foods’ reputation for sound business ethics.

SOURCES: Jonathan Bernstein, president, Bernstein Crisis Management; James D. Cox, law professor, Duke University; Eric Dezenhall, C.E.O., Dezenhall Resources; Richard Laermer, C.E.O., RLM Public Relations; Michael Maslansky, president, Luntz, Maslansky Strategic Research; Michael Robinson, senior vice president, Levick Strategic Communications, and a former S.E.C. public affairs and policy chief; and David White, attorney, Thompson & Knight.