Clinton Democrats Sued Over Global Crossing

WASHINGTON – Top Clinton Democrats found themselves in legal hot water Tuesday when Judical Watch filed its promised lawsuit against the telecom giant Global Crossing and some of its Democrat benefactors.

After a series of NewsMax.com exposés, a congressional committee held a hearing on Global Crossing in late March, and other House panels are investigating the company, which experienced an Enron-like bankruptcy, leaving shareholders and employees high and dry.

The suit names 13 top officers and directors of the company, including chairman and CEO Gary Winnick.

The suit was filed on behalf of Global Crossing shareholders who have brought claims of fraud, civil conspiracy and violations of the California Corporations, Business and Professions Code.

Former defense secretary and Global Crossing board member William Cohen is among the suit’s defendants for allegedly conspiring to "pump and dump” Global Crossing stock, and for allegedly corruptly awarding contracts. This is the same William Cohen who, as a member of the Senate Iran-Contra investigating committee in the late 1980s, seemed to have an inexhaustible supply of piety.

The beleaguered accounting firm Arthur Andersen, which has received similar bad publicity for its involvement in the Enron scandal, is named in the lawsuit for allegedly participating in, aiding and abetting Global Crossing’s fraudulent acts as a co-conspirator.

Democrat national chairman Terry McAuliffe is accused in the suit of "allegedly conspiring with Global Crossing directors and officers to inflate and artificially enhance Global Crossing’s income and market price of its stock.”

McAuliffe, while acknowledging he did quite well with his investment in Global Crossing, has denied reports in NewsMax and elsewhere that he turned a $100,000 investment into $18 million. But the New York Times, not exactly a bastion of the "vast right-wing conspiracy,” has done the math and certified those figures are accurate.

Finally, the suit names Li Ka-Shing as a defendant, along with his Global Crossing affiliate, Asia Global Crossing. The extra eye-opening significance of this is that Li Ka-Shing, a Hong Kong businessman, is an agent of the Chinese communist government, and he is now seeking majority control over the entire corporation.

"If Li Ka-Shing gains control over Global Crossing, that would make the Chinese government the phone company for the Pentagon and other sensitive agencies,” Judicial Watch President Tom Fitton told NewsMax.com.

"Whether its Enron or Global Crossing, Judicial Watch’s nonpartisan efforts to clean up corporate, legal and political corruption will not be deterred by the ‘elite business, legal, and political class’ who think they are above the law,” stated Judicial Watch General Counsel Larry Klayman.

Klayman chastised the Bush administration for taking "no meaningful action against either Enron or Global Crossing, both of whom lined politicians’ pockets, so the job falls to Judicial Watch.”

Given the involvement of Clinton and other Democrats in these twin scandals, the reluctance to go after them could be motivated by President Bush’s "new tone” in which "bickering” (no matter how truthful) is eschewed.

Constitutional scholars have pointed out that the Founding Fathers drew up a Constitution that would deliberately encourage what is now called "bickering.” The idea was to make sure that any action taken considers informed input, as well as informed consent of the governed, and thorough debate. Nothing was to be railroaded. Notwithstanding this, "bickering” has become a pejorative buzzword for free and open debate in a republic.

http://www.newsmax.com/archives/articles/2002/7/19/181027.shtml
SEC's Pitt Says CEOs Will Go to Jail; Watch Out, Terry McAuliffe and Jon Corzine

Wes Vernon, NewsMax.com
Saturday, July 20, 2002

WASHINGTON – Securities and Exchange Commission Chairman Harvey Pitt says the top brass of rogue corporations will have to go to jail before the public is reassured about the stock market.

The chairman denounced political opportunism on the part of those who call for his resignation or try to blame the stock market dive (a 390-point Dow plunge Friday) on President Bush.

Meanwhile, NewsMax.com uncovered documents indicating the SEC is pursuing a probe that might lead to Democrat national chairman Terry McAuliffe’s dealings with Global Crossing.

(snip)

What About Sen. Corzine?

The SEC spokesman gave the same response to our inquiry about a Goldman-Sachs case when that investment firm was headed by Sen. Jon Corzine, D-N.J. Here’s the question:

"A class-action suit and a former broker have accused Goldman-Sachs of forcing underwriting investors to pay artificially high prices for certain stocks. Published reports [in the Washington Times] indicate the matter has been brought to the attention of the SEC. What is the status of that investigation?”

Again, no comment beyond the above stock answer. However, the Times' story says the whistle-blowing broker, Nicholas Maier, had discussed the matter with SEC investigators.

Corzine claims he knew nothing about such schemes when he ran the firm from 1994 to 1999. He left a multimillionaire to run for the Senate, an office he obtained by burying New Jersey voters with an avalanche of ads paid for by his deep pockets.

The Mickey-the-Dunce mantra of "I didn’t know anything about this” is an excuse Pitt wants to take away from CEOs in the future.

The senator is quoted as saying: "Goldman-Sachs never forced anyone to buy anything when I was chairman. I can tell you that.” Maier contradicts that.

The Press Club's allocation of questions to its luncheon guests is limited by the constraints of time and the number of reporters who submit the same questions. Several reporters apparently wanted Pitt to address political charges leveled against Bush administration officials, including the president himself, Vice President Dick Cheney and Army Secretary Thomas White.

The chairman reminded the luncheon attendees that the Bush case regarding the Harken firm had been fully investigated by the SEC 12 years ago by a conscientious professional investigator who was a political independent, and he concluded there was no need for action and no violation of the law.

"Some people seek to extract political advantage out of that,” the top regulator said. As for Cheney/Halliburton and White/Enron, Pitt said any action by the commission would be fair.

"No one in this country gets a free pass,” the chairman said.

As for suggestions that he himself should resign because of his past dealings with leading accounting firms, Pitt says that’s the very reason he should not step down for the job he has held for 11 months, and for which he took more than a 99 percent cut in pay.

Most people understand you need somebody "who knows where the bodies are buried,” and he would not "walk away” from his responsibilities.

As for those who demagogue the corporate scandals to gain a couple of congressional seats, "I don’t listen.”

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