Posted on 09/30/2008 4:17:20 AM PDT by HAL9000
Today - September 30, 2008 - is Bill Clinton's last day on the job at InfoGROUP, the company that own's CNN's presidential polling partner, Opinion Research. After the company discovered the millions of dollars of corporate waste lost to the Clintons, his contract is not expected to be renewed.
The information was learned from a court settlement filed with the SEC and the Court of Chancery in the State of Delaware a few weeks ago, which revealed some term of his contract, including the ending date. There is no evidence that it will be renewed. It appears that Bill Clinton is effectively fired from the company, and his buddy, Vinod Gupta, is required to reimburse the company for the millions of dollars he swindled from shareholders, including the money wasted on the Clintons.
The full SEC documents are available at the source link above. Here are excerpts containing the good parts -
WHEREAS, the Amended Consolidated Complaint alleges, in substance, the following with respect to the issues set forth below:Private Aircraft:
From 2001 to 2005, Vinod Gupta, his family and friends, as well as certain Company directors, former President Clinton and his family, and other prominent individuals made improper, personal use of the Company’s private jets, and Vinod Gupta did not reimburse the Company for costs incurred in connection with such use. In addition, for a period of time, all payments for private jet use were made through Annapurna Corporation (“Annapurna”), a company wholly owned by Vinod Gupta, allowing Vinod Gupta to profit from these transactions. Further, in 2004 and 2005, in order to avoid reporting the Company’s extensive related-party transactions with Annapurna, the Company purchased the interests held by Annapurna in the private jets.
Former President Clinton’s Consulting Agreements:
The consulting agreements executed between the Company and former President Clinton in 2002 and 2005 were without any consideration to the Company, and the agreements were arranged without Board or Committee approval.
Grants to Former President Clinton:
In 2002, Vinod Gupta granted options of the Company’s stock to former President Clinton, as a third-party consultant, without proper authorization and approval.
WHEREAS, in its August 13 Order (as amended on August 20), the Court dismissed allegations in the Amended Consolidated Complaint that: (i) the July 21, 2006 standstill letter agreement between the Company and Vinod Gupta is invalid; (ii) Defendants breached their fiduciary duties by exempting Vinod Gupta from the Company’s shareholder rights plan; and (iii) the Company’s consultancy contracts with former President Clinton constituted corporate waste;
The SLC also examined the usage of the private planes from 1998 — 2007. Exact information about the approximately 1820 flights infoGROUP paid for on private jets during this period was not available. Therefore, the SLC examined flights in several categories, including: (1) flights described in the Amended Consolidated Complaint, as well as flights that were part of the same itinerary; (2) flights taken by former President Clinton and his family; (3) flights taken by other prominent individuals; (4) flights to international destinations and Hawaii; and (5) flights from selected time periods. In order to assess these categories of flights, the SLC collected documents, including invoices, infoGROUP travel forms, Vinod Gupta’s calendar, and his itineraries. The SLC also spoke to Vinod Gupta, his counsel, and other witnesses about the purpose of various flights.
The SLC has determined that remedial action is appropriate with respect to a portion of these flights, including, for example, flights to Aspen for Vinod Gupta and his sons; flights to Hawaii for Vinod Gupta, his family, and several guests; flights for former President Bill Clinton after infoGROUP had signed a consulting agreement with him; and flights for former President Clinton’s family members and other third parties.
Stock Options:
The SLC investigated the circumstances surrounding stock option grants to Vinod Gupta, former President Bill Clinton, and an outside company named Mindspirit LLC.
On July 31, 2001, the Compensation Committee granted 700,000 options to be allocated at the discretion of Vinod Gupta. Vinod Gupta is listed as one of the potential recipients. Thus, the Compensation Committee appears to have authorized Vinod Gupta to allocate options to himself. Several members of the Compensation Committee stated that there was an “understanding” that Vinod Gupta would take 500,000 of these options for himself. Vinod Gupta, however, did not allocate any of these options to himself. All other stock option grants to Vinod Gupta originated from the Compensation Committee or the Board. The SLC has determined that no remedial action is indicated with respect to this issue. In April 2002, infoGROUP signed a consulting agreement with former President Clinton that extended from May 1, 2002 to April 30, 2005. The agreement provided that Clinton would give advice and counsel to Vinod Gupta on strategic growth and business development in exchange for 100,000 stock options and other compensation. The Clinton consulting agreement was discussed at the April 15 and July 15, 2002 Audit Committee meetings, but there is no record of an approval of the option grant or a resolution giving Vinod Gupta authority to grant such options. President Clinton’s options expired without being exercised. The SLC has determined that remedial action is appropriate with respect to the authority to issue options generally, although no specific remedial action is necessary with respect to the unexercised and expired options granted to former President Clinton.
Former President Clinton’s Consulting Agreement:
The SLC investigated the circumstances surrounding infoGROUP’s consulting payments to former President Clinton.
In April 2002, infoGROUP signed a consulting agreement with former President Clinton that extended from May 1, 2002 to April 30, 2005. The agreement provided that former President Clinton would give advice and counsel to Vinod Gupta on strategic growth and business development in exchange for $2.1 million and other compensation. The Audit Committee discussed the terms of a proposed three-year contract with former President Clinton. In September 2005, infoGROUP and former President Clinton executed a new consulting agreement that extends from October 1, 2005 through September 30, 2008. The agreement provided that President Clinton would give advice and counsel to Vinod Gupta on strategic growth and business development in exchange for $1.2 million and other compensation. There is no evidence that the Audit Committee or Board discussed this consulting agreement. Former President Clinton spoke at Company events, mentioned Vinod Gupta and infoGROUP in speeches to other audiences, helped introduce Vinod Gupta to potential business contacts, and appears to have helped attract significant business to infoGROUP.
The SLC has determined that remedial action is necessary with respect to the authority that Company officers have regarding transactions entered into on behalf of the Company, although no monetary remedial action is appropriate with respect to this issue.
Nice one Hal.
Heads up here Rosie.
Thank YOU !!! :)
When a law license is suspended, I don’t think it’s automatically restored when the suspension is up. I think that the State Bar where it was initially granted has a few hoops to jump through. Not sure if it’s a matter of public record when or how that is accomplished, though.
I’m sure some legal eagles here on the forum can enlighten us, but I am surprised that 5 years went by so quickly.
Oh crap. Went to the wrong schools, took the wrong courses, and have a conscience.:(
ROTFL!
** Guess it was Pres. Clinton’s turn to be thrown under the bus. **
hahahah!
Whut goes around, comes around. :)
The new site will allow me to continue posting Clinton scandal research and breaking news reports, to revise posts when needed, and to operate without too many unnecessary disruptions as occurred on this thread.
I did the same thing a few years back (except for the reluctantly part), although your contacts and investigative links are a thousand times better and more interesting than mine (I use all public sources, Congressional Record, PACER, etc.), and your writing is superior!
Because my efforts can be reproduced easily by anybody who looks at the public record, I didn't (and don't) care if few (or even zero) people see my production. I left a link to cboldt.blogspot.com in my FR Home page, and left it at that. Your production is different, and I hope you find or create an outlet that will be easy to find.
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