Clinton campaign head made $200,000 with subprime lender

Hillary Rodham Clinton's campaign manager, Maggie Williams, earned about $200,000 on the board of a Long Island subprime lender that charged prepayment penalties -- a practice that Clinton, a critic of the subprime industry, now seeks to eliminate.

Williams, who took over the reins of Clinton's campaign in early February, served as a director on the board of the Woodbury-based Delta Financial Corp. from April 2000 until the firm declared bankruptcy in December, according to Securities and Exchange Commission records.

She was recruited by former New York City Deputy Mayor Bill Lynch, a Delta consultant. Her assignments were to create a new code of "best practices," and to improve the company's crisis management operation in the wake of state and federal predatory lending probes that resulted in a $12 million payout to borrowers.

Her hiring coincided with stepped-up Delta outreach efforts in minority communities, where the company made a large number of its loans, an iniTiative that included parties for homeless children and mortgage seminars in Brooklyn and Queens.

Williams, 53, isn't the only Clinton insider who made money from an industry the candidate has demonized. A month ago, The Wall Street Journal reported that Clinton ally and former HUD Secretary Henry Cisneros grossed more than $5 million in stock sales and board compensation from Countrywide Financial, one of the nation's largest subprime lenders.

.....keep in mind, the tax-exempt Spitzer Family Foundation run by Spitzer's father, mother, and brother supposedly "invests" in hedge funds....

BACKSTORY

Spitzer’s daddy, his immediate family, and other financiers, pumped hundreds of thousands of dollars into Eliot's campaigns since his first losing bid for attorney general in 1994.

The Spitzer family tax-exempt charity has donated at least $140,000 to groups led by his political allies - a practice that some have questioned. Bernard Spitzer also lent his son $5 million to pay for early campaigns when Eliot was largely unknown.

Through Spitzer has little trouble raising money now, his relatives have continued to do their part. He reported $19 million in his campaign coffers in January, with his parents and brother Daniel, a neurosurgeon, donating $326,000, records show.

The Bernard and Anne Spitzer Charitable Trust - on which Eliot, Daniel and their parents are board members - gave a total of $66,000 in 2004 to NARAL Pro-Choice New York, an abortion rights group; the Drum Major Institute, a think tank; and the Progressive America Fund, a voter mobilization effort. The groups, whose leaders back Spitzer for governor, received $75,000 from his charity between 2000 and 2003. Donations to his allies were a fraction of the $2.6 million the foundation awarded in 2004.

REFERENCE The Bernard & Anne Spitzer Charitable Trust Inc.
(Formerly: The Bernard & Anne Spitzer Foundation Inc.)
730 5th Ave----Suite 2202
New York, NY 10019-4105
Telephone: (212) 765-5170

Bernard Spitzer, President; Anne Spitzer, Treasurer. Board members--Eliot and his brother Dr Daniel Spitzer.

Type of foundation: Independent Fiscal Date: 12/31/05
Assets: $35,115,418 Total Giving: $578,663
EIN:137298842

Most Recent IRS Filing: View 0990 FORM http://72.14.205.104/search?q=cache:l2QSwTcRe2YJ:foundationcenter.org/cgi-bin/ffindershow.cgi%3Fid%3DSPIT004

0990 FORM FINDER http://dynamodata.foundationcenter.org/990s/f990_pdf?idx=13&ein=137298842&fd=123105&fn=The%20Bernard%20%26amp%3B%20Anne%20Spitzer%20 Charitable%20Trust%20Inc.%3Cbr%3E730%205th%20Ave.%2C%20Ste.%202202%3CBR%3ENew%20York%2C%20NY%2010019-4105%3CBR%3E&a .pdf

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For his two campaigns, Spitzer spent a total of about $12M, mostly personal funds and bank loans. Spitzer borrowed about $5M from his father to help settle loans, and was earning $200,000 a year consulting for his father. Between 2000-2004, the charity gave $101,000 to NARAL's foundation. NARAL also has given $10,500 to Spitzer's two campaigns and endorsed him.

The Spitzer trust invests in hedge funds, including some whose managers donate to Spitzer. Lawrence Golub, Spitzer's high school friend, and his wife, Karen Finerman, gave a total of $100,200 to Spitzer's bid for governor. Both have been managers in Bedford Falls Investors LP, and he is a founder of Golub Capital Partners. The Spitzer trust had allegedly invested $4.8M with those groups in 2004.

Lawrence Golub, Founder and President
Golub Capital Partners IV, LP
TELE (212) 750-6060
TELE (212) 660-7272
EMAIL lgolub@golubcapital.com

New York Office
551 Madison Avenue
New York, New York 10022
Lawrence Golub TELE 212.660.7272
EMAIL lgolub@golubcapital.com

David Golub
TELE 212.660.7277
EMAIL dgolub@golubcapital.com
TELE 212.750.6060 (phone)
FAX 212.750.5505 (fax)

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During Spitler's 1998 AG campaign, he indignantly denied allegations by his GOP opponent, Dennis Vacco (Vacco is a top-notch pro-life conservative), that Spitler's wealthy father had provided millions in loans to his AG campaign. Candidate Spitzer insisted he was using only his own money (family members are limited by law to $110,000 in total contributions) and accused Vacco of "smearing" his father.

Not until he'd actually taken office did Spitzer admit that Dennis Vacco had been correct, after all. In fact, it turned out Spitzer, despite earlier denials, had done the exact same thing during his unsuccessful 1994 run for AG.

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