EXCERPT----NY POST By BRENDAN SCOTT, Nov 11, 2007
When Rudy Giuliani walked out of City Hall six years ago, he had $2 million in the bank and the moniker "America's mayor" on his résumé. Then came the book deals, the speaking tours and the partnership at a powerful Washington lobbying house. None, however, would prove more lucrative than the small consulting firm Giuliani and a dozen of his most trusted aides founded in 2002 in an angular glass tower at 5 Times Square.
Most of the firm's top executives were in the mayor's "kitchen cabinet," including Bernard Kerik, his former police chief; Michael Hess, who served as the city's top lawyer; Anthony Carbonetti, chief of staff from '99-'01; Daniel Connolly, special counsel to the city's Law Department from '97-'01; Thomas Von Essen, former FDNY commissioner; and Dennison Young Jr., chief counsel during Giuliani's eight years as mayor.
Since its startup in 2002, Giuliani Partners has formed several subsidiaries, including an investment bank called Giuliani Capital Advisors - since sold - Giuliani Compliance Japan and security companies called Giuliani-Kerik and Giuliani Security & Safety, which replaced Giuliani-Kerik and Giuliani Security & Safety Asia.
By the time Giuliani declared his run for president last spring, his namesake firm had grossed an estimated $100 million. The ex-mayor himself was worth of as much as $66 million. But on the campaign trail he has been fending off questions about the shady clients, disgraced employees and murky business decisions.
Nobody has been more problematic than Kerik, who rose from a job as Giuliani's driver during his 1993 mayoral campaign to head of the city's Correction Department and finally police commissioner. At Giuliani Partners, Kerik headed an affiliated security-consulting company.
Controversy erupted after Giuliani recommended Kerik to President Bush, who nominated him be Homeland Security chief in 2004. Kerik abruptly withdrew his name, blaming tax issues involving a nanny, but reports soon surfaced about stock-option windfalls, connections with people suspected of dealing with the mob and extramarital affairs.
http://www.nypost.com/seven/11112007/news/nationalnews/minding_his_business_639428.htm?page=0
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February 27, 2002
Giuliani to Give Money Quickly In Shift on Twin Towers Charity
Rudolph W. Giuliani agreed yesterday to distribute promptly the $100 million remaining in the city's Twin Towers Fund to the families of 430 uniformed and civilian rescuers killed on Sept. 11. Mr. Giuliani's pledge came after weeks of criticism about his plans for the Twin Towers money, including threats of a lawsuit from police widows. The decision by the former mayor, who formed the Twin Towers Fund within days of the attack, amounts to a substantial victory for the families of the rescuers, many of whom have criticized his efforts to privatize the fund, hire a staff of 12 to oversee its work and perhaps take months or even years to disburse its millions.
Even more important, it remained uncertain if New York State's attorney general and the courts would approve the transfer of the $100 million left in the city's Twin Towers Fund to the private charity of the same name that is controlled by Mr. Giuliani. In recent weeks, while seeking control of the $100 million, Mr. Giuliani asserted that he had a ''sacred obligation'' to the families of the dead rescuers, and he suggested that fiscal prudence demanded a measured approach to distributing the money, taking perhaps as long as three years.
In turn, the police widows agreed to abandon their threats of a court fight to oppose the formal transfer of the $100 million. They also agreed not to oppose Mr. Giuliani's continued control of roughly $15 million he has raised since leaving office in the new private charity and to maintain a staff to oversee both further fund-raising and the distribution of additional benefits to the families.
According to several people present, the police relatives lashed out at the former mayor, accusing him of failing to communicate, ignoring their wishes and seeking undue control over their financial futures by forcing them to apply repeatedly to the Twin Towers Fund for money. ''I didn't want to go through the next 20 years asking a board for money,'' said Kathy Vigiano, whose husband, Joseph Vigiano, a police officer, was killed. But those who were not in yesterday's meeting -- most notably representatives from the police and fire unions -- reacted cautiously; in part, they acknowledged, because of their history of bruising contract battles with Mr. Giuliani, but also because the deal took them by surprise. ''Unbelievable,'' Capt. Peter Gorman, president of the Uniformed Fire Officers Association, said yesterday when he was told about it by a reporter.
But Harold Schaitberger, president of the International Association of Fire Fighters, said that he remained adamantly opposed to any transfer of funds to Mr. Giuliani's charity. He also objected to Mr. Giuliani's continued control over even the $15 million in his private charity.Mr. Giuliani, he charged, gives every indication of using the Twin Towers Fund to maintain a staff of loyal supporters and to advance his political aspirations.
Mr. Giuliani has proposed spending up to $2.2 million on administrative costs, including paying a receptionist as much as $8,700 a year more than a rookie police officer. The fire union distributed its $111 million with estimated administrative costs of less than $30,000. ''As far as I'm concerned, all they need right now is a calculator, a check-writing machine and someone to sign the checks,'' Mr. Schaitberger said yesterday. Just last week, in a long interview about the Twin Towers Fund, Mr. Giuliani brushed aside such criticisms.
The president of the International Association of Fire Fighters, said Giuliani gives every indication of using the Twin Towers Fund to maintain a staff of loyal supporters and to advance his political aspirations.
BACKGROUND Giuliani very publicly, for maximum PR impact--- mostly to to suckup to voting blocs and campaign contributors---- ripped up a huge Saudi check made on behalf of 9/11 victims. Then very quietly, Giuliani turned around and accepted big Saudi checks when they were made out to his consulting business, "Giuliani Partners.”
The original Saudi check was made out to the "Twin Towers Fund" Rudy's special little "tax-exempt charity." Rudy appointed to the Board of Directors Arnold Schwarzenegger and his then-mistress, Judith Nathan. Giulaini then referred to Nathan as a "philanthropist."
Arnold used the tax-exempt "Twin Towers Fund" to help him launch his profit-making movie, "Collateral Damage," with Rudy and his entourage joining in on the gala event.