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DNC Chair Caught in Global Crossing
Scandal
JW Investigates McCauliffe’s Link to Bankrupt Company
When Enron filed for bankruptcy, the largest in our
nation’s history, Clinton crony Terry McAuliffe was among
the first to cast his verbal stones. The DNC Chairman
criticized greedy Enron executives for hurting the “small
people,” calling for a full investigation. He lashed out
at the wealthy special interests. He questioned the
company’s ties to the Bush Administration. Armed with
what he perceived to be a winning campaign issue against
Republicans and their popular president, McAuliffe was
relentless. Ironically, the Bush Administration’s cozy
ties with Enron are subject to JW’s investigation.
So why has the Democratic Party’s most spotlight hungry
mouthpiece faded from view? Two words. Global Crossing.
While the SEC and FBI begin to probe the questionable
accounting practices of telecommunications giant Global
Crossing, Ltd., which went belly up on January 28,
Judicial Watch has launched a full investigation into
Terry McAuliffe’s ties to the company.
In what is an unprecedented case of political
profiteering, McAuliffe turned a $100,000 initial
investment in the company into $18 million in less than a
year and a half—a nifty 18,000% profit. According to the
New York Times, McAuliffe made millions more trading the
stock and options after the company went public in 1998.
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Here is how the stock sold, to the dumb public, after McAuliffe bought low and sold before the corruption was revealed! |
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But McAuliffe’s
shady ties to the company go beyond his questionable
investment windfall. According to the press reports,
McAuliff also did “political work” for Global Crossing
CEO Gary Winnick, working out of an office in downtown
Washington owned by Winnick. On one occasion, McAuliffe
set up a golf outing for Winnick and then-President
Clinton. Winnick would later give a million dollars to
Clinton’s presidential library. The question is: what did
he and Global Crossing receive in return?
Crossing the
Line
Shortly after Winnick’s generous contribution to
Clinton’s legacy building library, Global Crossing was
awarded a $400 million contract by the Pentagon.
Due to irregularities in the bidding process, brought to
light by separate complaints filed by those who had lost
out on the contract, the Bush Administration cancelled
the deal, precipitating a free fall of Global’s stock
price.
Like Enron, Global Crossing had artificially inflated its
stock price while executives engaged in massive stock
selling in the year leading up to filing for bankruptcy.
While Global brass made billions, employees lost their
life’s savings as their 401(k) retirement plans were
casualties in the Chapter 11 filing.
Troubling Ties
While Enron was an equal opportunity influence peddler,
Global Crossing’s political leanings are noticeably
one-sided. The company was the fifth largest corporate
donor to the Democratic Party during the 2000 election
cycle, but moved swiftly into first place this year. So
far, Global has donated $350,000 to the Democratic Party
for the 2002 campaign, and none to the GOP.
Further, Winnick, through his Pacific Capital Group,
donated all of his 2000 campaign budget of $250,000 to
the Democratic Party, and none to the GOP.
Global Crossing reportedly sponsored a fundraising dinner
for Senate Majority Leader and Democrat Tom Daschle and
gave thousands to Henry Waxman during the last election
cycle. The company paid former Justice Department lawyer
and Janet Reno assistant Anne Bingaman $2.5 million for
her lobbying efforts. And former Defense Secretary
William Cohen, a Republican, the man at the helm when
Global Crossing was awarded a lucrative Pentagon
contract, was named a Director of Global Crossing in an
April 2001 company press release. He reportedly got a
$500,000 consulting fee from the company as well.
Finally, Judicial Watch has filed Freedom of Information
Act requests with various government agencies regarding
Global Crossing and is contemplating shareholder lawsuits
as well.
“Terry McAullife’s astonishing profit reeks of potential
insider trading, especially given his role in selling
government favors for campaign contributions during the
Clinton Administration,” said JW Chairman Larry Klayman.
XXXXX DRUDGE REPORT XXXXX MON JAN 28 2002 20:21:38 ET
XXXXX
GLOBAL CROSSING BANKRUPTCY: GOP INSIDERS QUESTION DNC
CHAIRMAN MCAULIFFE PROFIT, TURNED $100,000 INTO
$18,000,000
**Exclusive**
ENRON-stung GOPers are discreetly eyeing the collapse
of GLOBAL CROSSING [which on Monday became the 4th
largest bankruptcy in history] and its Chairman Gary
Winnick, a top Democrat donor who helped DNC head Terry
McAuliffe turn a $100,000 stock investment -- into
$18,000,000!
MORE
McAuliffe arranged for Winnick to play golf with
President Clinton in 1999 after his cash windfall.
Winnick then gave a million dollars to help build
Clinton's presidential library.
A top White House source noted to the DRUDGE REPORT,
with irony, the direct McAuliffe connection with
Winnick and GLOBAL CROSSING.
"McAuliffe is a guy who made millions and millions and
millions off this GLOBAL CROSSING stock? And the
company goes bankrupt. And he has the gonads to
criticize anyone on ENRON!" blasted the Bush insider
who asked not to be identified.
"What did Winnick get for his money? Let's have
congressional hearings! Stockholders should demand it!
Will Mr. Clinton give back the money?"
McAuliffe, in his role as chairman of the Democratic
National Committee, has been a vocal opponent of the
ENRON collapse, telling CNN this weekend: "The people
out there who are hurt the most are the small people,
and once again the wealthy special interests got to
take their money off the table, and that's what we need
to investigate."
"The Bush administration is running fiscal policy the
way folks at ENRON ran their company," McAuliffe has
said.
But with shares of GLOBAL CROSSING closing at just 30
cents on Monday, and trading suspended after the
Chapter 11 deal was announced, McAuliffe faded from
view.
For McAuliffe, GLOBAL CROSSING turned out to be a
bonanza. The stock had soared in the late 90s, when
Winnick once bragged that he was the "richest man in
Los Angeles." McAuliffe operated out of an office in
downtown Washington that belonged to Winnick -- to help
the mogul "work on deals."
McAuliffe told the NYT TIMES's Jeff Gerth in late '99
that his initial $100,000 investment grew to be worth
about $18 million, and he made millions more trading
GLOBAL's stock and options after it went public in '98.
Top GOP insiders were also gloating over GLOBAL
CROSSING ties to other ENRON obsessives.
A major fundraising dinner for Senator Tom Daschle was
bought and paid for by GLOBAL CROSSING.
Winnick gave thousands of dollars to top ENRON cop Rep.
Henry Waxman during the last election, according to
public records.
But as everything blurs, and blurs again in the
bankruptcy cycles of the fresh century, and in a twist
that will ensure GOP operatives do not ride GLOBAL
CROSSING all the way into shore: Former President
George Bush once made a smart move by accepting stock
in a start-up company instead of his usual speaking fee
when he addressed an audience in Tokyo.
Bush agreed to take shares in -- GLOBAL CROSSING LTD.
in lieu of an $ 80,000 fee!
McAuliffe's Winnick reportedly suggested that Bush take
his fee in stock instead of cash, and Bush agreed. The
Bush stock, at its high, was worth over $ 14 million.
It is not known if he is still holding the scraps.
Developing...
* * * * *
An e-mail to the DRUDGE REPORT on Monday night:
I am a consistent reader of the Drudge Report and
listen to your nationwide radio program.
I am a shareholder of Global Crossing and I believe
there is something terribly wrong with the whole
scenario - Gary Winnick's huge profits Vs calming
public statements to Shareholders, the yearly turnover
of CEO's, Gary Winnick's cronies making up the BOD and
that BOD not protecting Shareholders, the public
statements of the most recent CEO, John Legere, Vs the
bankruptcy announcement on Monday, the deal with the
Chinese buying the Company for pennies - 750 million
for a 22.4 BILLION dollar company - (Will our
government and other major firms use this service owned
by a Chinese Co.?), Andersen's involvement -- the
confusing balance sheets — the lending institutions
being duped, and the obvious profiting and involvement
of political figures.
I hope your considerable influence will affect the
bankruptcy judge, Robert E. Gerber, to deny the
petition.
Sir, I can assure you that every employee and
shareholder appreciates your involvement -- the little
guy has suffered enough.
Sincerely,
xxx xx xxx
-----------------------------------------------------------
Filed By Matt Drudge
Reports are moved when circumstances warrant
http://www.drudgereport.com for updates
(c)DRUDGE REPORT 2002
Not for reproduction without permission of the author
This is the Karl Loren Happiness On Line Web Site Karl Promises To Answer Any Personal Message, Personally.
![[Global Crossing's Shares]](../images/global02032002231703.gif)