McAuliffe has made a career of crony capitalism. From his early days as a small bank president which provided loans to connected Democratic politicians in Washington DC, a position his father helped secure as a Syracuse New York Democratic Party boss, right up until his most recent venture Green Tech, based in Mississippi (even though he’s now running for VA governor) and financed using taxpayer money, McAuliffe has never been afraid to work an angle. It’s what he’s always done and we’ve documented his exploits HERE, HERE, and HERE.
But now the Securities and Exchange Commission is getting involved, which given who’s running the executive branch these days is curious.
And not like this is the first time McAuliffe has been tied to sketchy deals.
McAuliffe’s big payday would come late in the decade by way of an Internet startup, Global Crossing. As an angel investor, he pumped $100,000 into the fiber-optic networking company in March 1997. The firm went public the following year. Coincidentally or not, McAuliffe sold his stake right at the stock price peak, walking off with $18 million. Any number of top union officials affiliated with the union-controlled financial services firm, ULLICO, also sold their extensive stake in Global Crossing, something that eventually triggered House and Senate investigations. Global Crossing’s then-CEO, Gary Winnick, at McAuliffe’s arranging, played a round of golf with President Clinton, whereupon he pledged $1 million to the construction of the Clinton Library. McAuliffe also persuaded Winnick to invest $40 million in another telecom startup, Telergy. That firm’s board of directors included McAuliffe, who in his broker role pocketed a reported $1.2 million. McAuliffe prevailed; Telergy didn’t. In August and September 2001, the company laid off 450 employees and went into bankruptcy.
If Virginia is looking for a crony capitalist in the Governor’s mansion (a new one) it would be hard to find a better one than Terry “The New Yorker” McAuliffe.
(From the Washington Post)
GreenTech has sought overseas investors through a federal program that allows foreigners to gain special visas if they contribute at least $500,000 to create U.S. jobs. Gulf Coast, which is run by Anthony Rodham, the brother of former secretary of state Hillary Rodham Clinton, seeks investors for GreenTech and arranges the visas.
In recent months, the SEC has stepped up its scrutiny of companies that use the visa program, largely over concerns that investors may have been misled or defrauded by the companies seeking their money. The visa program has also raised national security concerns from some lawmakers, who are worried that suspect individuals are using it to gain entry into the country.