McAuliffe's Business Experience
beaconxt9
Terry McAuliffe claims to have created "five businesses in the region"
during a campaign stop but not one word about it in our local paper, the
RTD. Well thank goodness for sourcewatch.org:
"...
Business experience
He started his first business, McAuliffe Driveway Maintenance, at the age of
14 .
In December 2008, at a Richmond gubernatorial forum, McAuliffe said he has
"started five businesses in the region." [25] Nothing is public knowledge
about any of these companies, other than they have not created any jobs.
Terry McAuliffe has served on the board of directors of several companies,
and has purchased other companies already in existence.
[edit]McAuliffe, Kelly, Raffaelli, 1990-94
From 1990 until 1994, McAuliffe headed and led business development for the
lobbying law firm McAuliffe, Kelly, Raffaelli.[26] As the partner in charge
of bringing in clients, McAuliffe, never lobbied on their behalf.
Nonetheless, the clients he brought to the firm occasionally engendered
controversy. For example, in a 1992 report titled "The Torturer's Lobby,"
the Center for Public Integrity revealed that McAuliffe, Kelly and Raffaelli
received several hundred thousand dollars for managing Turkey's image in the
United States. The report detailed specific incidents of official torture
sponsored by the Turkish government. Other clients of the firm included:
a.. The American Nuclear Energy Council (to build support for a nuclear
dump in Nevada)
b.. Cellular Telecommunications Industry Association (CTIA)
c.. International Franchise Association (to oppose the Clinton healthcare
reform)
d.. National Cable Television Association
e.. ICI Chemical Company
f.. Government of India
g.. Government of Taiwan
Press reports indicate that McAuliffe excelled at driving results for the
firm's clients, even after he left the firm. For example, McAuliffe and the
president of the Cellular Telecommunications Industry Association attended a
White House coffee on August 3, 1995. One week later, on August 10, 1995,
the Clinton administration directed the government to craft a policy that
would more easily accommodate the cellular industry's need for cell tower
sites on federal land.
[edit]The Boland Group and American Pioneer Savings Bank controversy,
1991-94
In May of 1990, American Pioneer, a savings and loan bank headquartered in
Florida and owned by McAuliffe's future father-in-law (Richard Swann), was
seized by federal regulators and placed into receivership with the
Resolution Trust Corporation.[27]
In June of 1991, McAuliffe, Tony Coelho and John Boland organized a
commercial real estate company named the "The Boland Group, Inc." McAuliffe
responsibilities included business development.
Between 1991 and 1994, The Boland Group brokered at least two deals between
American Capital Group and the Resolution Trust Corporation. A notable
principle at American Capital Group was Dorothy (Swann) McAuliffe, daughter
of Richard Swann. Specifically, Dorothy McAuliffe's presence raised eyebrows
because the property her company purchased was held by her father's failed
bank, American Pioneer Savings and Loan before turned its assets over to the
taxpayer funded Resolution Trust Corporation.[28]
The Boland Group's client list included the Clinton/Gore 1996 Re-election
committee, the Resolution Trust Corporation, the Pension Benefit Guarantee
Corporation, The United States Immigration and Naturalization Service and
several of Washington's most powerful and connected law firms and lobbying
shops.
In 1997 McAuliffe told Mother Jones Magazine that he was never a partner in
the Boland Group, that his exposure was limited to receiving referral fees
and that he severed all ties with the company in March 1994. [29]
[edit]Federal City National Bank, 1988-91
In January 1988, when he was 30 years old, McAuliffe became the youngest
chairman of a bank in the history of the United States when he assumed
responsibility for all aspects of Federal City's operations.[30]
Shortly thereafter, the bank loaned $125,000 to a political action committee
that supported Richard Gephardt'sPresidential campaign. McAuliffe told the
New York Times that he abstained from voting on the loan because he was also
the Gephardt campaign's finance chairman.[31]
The bank also provided loans to Tony Coelho and the then-Speaker of the
United States House of Representatives, Jim Wright. Both Representatives
would soon retire from Congress under the cloud of scandal.[32]
In 1991, under McAuliffe's leadership, the bank was cited by federal
regulators for unsafe and unsound banking practices. Regulators forced
McAuliffe to sign a consent agreement that required the bank to hire outside
management, review delinquent loans, track bad credit, and raise additional
capital. [33]
Ultimately, McAuliffe was unable to raise the additional capital required by
federal regulators.[34]
In December 1991, after four years as chairman and with his bank reeling
from real-estate losses, McAuliffe merged Federal City National Bank with
another institution run by political insiders, Credit International Bank.
[35]
[edit]Telergy, 1999-2001
From August of 1999 until August of 2001, McAuliffe served on the Board of
Directors at Telergy, a telecom company. Press reports indicated that he had
been helping the company in an unofficial capacity for the previous three
years. In September 1999, a month after McAuliffe joined the board, Global
Crossing invested $40 million in Telergy; McAuliffe brokered the deal and
pocketed $1.2 million for his efforts. In August and September of 2001,
Telergy laid off 450 employees without providing any severance package. In
December that year, Telergy began Chapter 7 bankruptcy proceedings.
[edit]InPhonic, 2000-2007
In September of 2000, Terry McAuliffe joined the board of InPhonic, a
Washington-based company that sold cell phones and related technology over
the Internet.
The law firm of Finkelstein Thompson LLP announced a lawsuit seeking class
action status has been filed in the United States District Court for the
District of Columbia against InPhonic, Inc. in May of 2007.[36]
In November 2007, the company filed for bankruptcy. According to court
filings related to a lawsuit, while "on the verge of bankruptcy", InPhonic
concealed its financial condition and borrowed $4 million from Icon
International, a corporate bartering brokerage. In addition, thousands of
InPhonic's customers filed complaints alleging that the company did not
honor its rebate promises. The company was rated "F" by the Better Business
Bureau.[37]
[edit]Agate LLC
In 2009, McAuliffe claimed his partnership interest was valued between
$50,001-$250,000.
[edit]Capital Management International
Terry McAuliffe, is a partner of Capital Management International. [38]
In 2009, McAuliffe claimed his partnership interest was valued in excess of
$250,000.
[edit]Carlyle Energy Coinvestment III LP
In 2009, McAuliffe claimed his partnership interest was valued in excess of
$250,000.
[edit]CP III Coinvestment LP
In 2009, McAuliffe claimed his partnership interest was valued in excess of
$250,000.
[edit]CP IV Coinvestment LP
In 2009, McAuliffe claimed his partnership interest was valued between
$50,001-$250,000.
[edit]Paladin Capital Partners Coinvestment
In 2009, McAuliffe claimed his partnership interest was valued in excess of
$250,000.
[edit]SHP I LP
In 2009, McAuliffe claimed his partnership interest was valued in excess of
$250,000.
[edit]SHP II LP
In 2009, McAuliffe claimed his partnership interest was valued in excess of
$250,000.
[edit]Stone House Partners
In 2009, McAuliffe claimed his partnership interest was valued in excess of
$250,000.
[edit]Surrey Homes LLC
In 2009, McAuliffe claimed his partnership interest was valued in excess of
$250,000.
SOURCE: Virginia Public Access Project
[edit]Controversies
[edit]Turkey, 1991
Turkey spent $3.8 million on lobbyists over the 1991-92 reporting cycle.
McAuliffe's company represented Turkey at a time when that government was
the subject of international scrutiny for alleged human rights abuses. The
firm was criticized in a report titled "The Torturers' Lobby," published in
1992 by the Center for Public Integrity.
The report revealed McAuliffe's lobbying firm was paid hundreds of thousands
of dollars to manage Turkey's "image" within the United States. [39]
The McAuliffe gubernatorial campaign says the company's work for Turkey had
to do with a longstanding dispute between Armenia and Turkey over a period
of history after World War I when the Ottoman Empire killed, by some
estimates, more than 1 million Armenians.[40]
[edit]Prudential lease deal, 1993-97
While he was a Clinton fundraiser at the DNC, head of a lobbying firm, and
Ambassador to a Korean trade expo, in 1993 McAuliffe's firm accepted
$375,000 "contingency fee" from Prudential Insurance for a lease deal with
Pension Benefit Guaranty Corporation (PBGC), a government agency.
According to Mother Jones Magazine, court records showed that the Department
of Justice requested copies of a 1995 U.S. District Court case in Virginia
that detailed allegations (including the PBGC deal) against McAuliffe and
The Boland Group, a real estate partnership with which he was associated.
The Boland Group had earlier sued its former partner David Nunes for fraud.
Nunes filed a countersuit claiming The Boland Group used improper political
connections to obtain real estate commissions.
The Mother Jones article states: "Nor was Nunes alone. A lawsuit filed in
the Washington, D.C., Superior Court by another former business associate,
Joseph Gargan, also claimed McAuliffe and (former Rep. Tony) Coelho used
their political clout to snare lucrative deals. Gargan's suit alleged that
between 1990 and 1995 McAuliffe and The Boland Group took in $2.4 million in
real estate commissions, without giving Gargan his cut. The group recruited
Gargan in 1990 to serve as its licensed real estate agent in the District of
Columbia; Gargan claimed the group had fraudulently used his real estate
license to broker deals behind his back."[41] [42] The Justice Department
later closed its investigation without bringing charges.
[edit]John Huang, 1994-97
During 1997, several DNC fundraising scandals that took place during the
1996 election cycle came to light, including the matter of a former
mid-level Commerce official named John Huang.[43]
McAuliffe has made conflicting statements regarding his relationship with
Huang, some of which he later recanted.
According to Mother Jones Newswire, McAuliffe's statement are important to
understanding the campaign finance scandals at the time. In the 1970s,
Congress limited individual contributions to candidates, but it left
unrestricted the amounts donors could give to the parties so long as the
donations were not targeted to specific candidates. Among the issues
surrounding the 1996 elections was the charge that the Clinton/Gore campaign
effectively directed fundraising and spending at the DNC.
McAuliffe's denial of any coordination contrary struck some as insincere. A
source told Mother Jones Newswire that "It was one fundraising system with
two roads that ran from it...Terry was in charge of the fundraising system
for the president. It doesn't matter if you call it the DNC or you call it
Clinton/Gore. Everything was so tightly coordinated."
Mother Jones Newswire noted McAuliffe had argued that he was not involved in
the campaign during most of 1996, when many apparent fundraising abuses --
such as the hundreds of thousands of dollars solicited from questionable
sources by DNC fundraiser John Huang -- took place, as McAuliffe told Mother
Jones "From November [1995] until September [1996] I was gone."
He said he left when the Clinton/Gore committee reached the maximum total in
contributions allowed by law. Miami lawyer Marvin Rosen took over
fundraising at the DNC shortly thereafter, and McAuliffe says he didn't
return until September to help the DNC make a final fundraising push.
Mother Jones adds, "But McAuliffe was contradicting his own statements from
other interviews, in which he said he had met Huang briefly at a 1996
dinner. Also, Huang and his wife, Jane, contributed $25,000 to the DNC while
McAuliffe was DNC finance chairman in 1994." The article continues:
In a second interview with Mother Jones, McAuliffe changes his story,
acknowledging that he raised money in the spring and summer of 1996. He
estimates he raised $3-$5 million for the Democrats and was present at two
intimate White House lunches during the period, blaming his involvement on
big-money contributors who didn't want to deal with anybody else. "People
knew I was close to the president," he shrugs. "Probably closer than most
people. So they wanted to be with me."
At this point, the motivational pitchman who can "sell" is replaced by an
operative professing fundraising fatigue. "I'm tired of the dough," he says.
"I don't ever want to do it again." For the next two years, McAuliffe says,
he'll concentrate on his home-building business, American Heritage Homes.
[44]
The Justice Department later closed its investigation without bringing
charges.
PBS' Frontline provided a timeline of events related to the scandals of the
1996 cycle:[45] ..."
Terry McAuliffe is a lying yellowdog Democrat (actually a kadimacrat). Why
the silence concerning his lack of honestly and his associations? Well time
to meet under the Tree of Liberty!Never forget the USS Liberty!