Judicial Watch (JW), the public interest law firm that investigates and prosecutes government corruption, will investigate the suspicious circumstances of the case. In a related development Monday, Global Crossing faces an investigation of its accounting practices by federal regulators, the Wall Street Journal reported.
Global Crossing recently filed for what has become the fourth largest bankruptcy in history. As NewsMax.com has reported, McAuliffe in the 1990s turned a $100,000 investment in Global Crossing into an $18 million profit.
The Securities and Exchange Commission last week asked the Bermuda-based company for corporate documents and a letter sent by a former finance executive that raised concerns that the company and its auditor, Arthur Andersen, misled investors about the accounting for long-term leases, the Journal said.
Global Crossing, which has given more to the Democrats than Enron gave to the Republicans, has had a cozy relationship with McAuliffe, ex-President Bill Clinton and other Democrats. The now-bankrupt telecommunications giant reportedly has given money to Democrat politicians who have salivated over the prospect of gaining political capital on the Enron story.
Judicial Watch, in its announcement, noted that McAuliffe did "political” work for company founder Gary Winnick. After his windfall profits, McAuliffe set up a golf outing for Winnick and then-president Clinton. Winnick later donated at least $1 million to the Clinton Presidential Library.
JW also cited reports in the Los Angeles Times that show Global Crossing’s bankruptcy resulted from the same type of corrupt accounting practices as Enron’s.
"Questions have also been raised about a $400 million dollar contract, set in motion by the Clinton Administration, awarded to Global Crossing by the Pentagon last year,” says a Judicial Watch news release.
The public interest firm Monday filed Freedom of Information Act requests with government agencies concerning Global Crossing and is considering shareholders lawsuits against the company as well.
Here’s the bottom line:
"The big question,” stated JW Chairman and General Counsel Larry Klayman, "is what did Global Crossing’s Gary Winnick get as a result of his golf outing and million dollar gift to Bill Clinton.”
Once again, alluding to suspicious coincidences, Klayman added, "Terry McAuliffe’s astonishing profit reeks of potential insider trading especially given his role in selling government favors for campaign contributions during the Clinton years.”
Except for the Washington Times, the L.A. Times appears to be the only major mainstream newspaper to spotlight this scandal.
Washington’s establishment outlet, the Washington Post, which Monday headlined the refusal of former Enron Chairman Kenneth Lay to voluntarily testify before Congress, reported nary a word about the Global Crossing scandal and the Democrat connection. Nothing was printed about the story over the weekend in the New York Times either.
Even the Journal has printed only the business side of the story without mentioning the Democrat political angle either in its news columns or on its normally aggressively conservative op-ed pages.
NewsMax.com will watch developments in this unfolding scandal and attempt to keep you posted.
To add icing to the cake, JW seeks to get as many citizens as possible involved in what may be shaping up as a battle between ordinary citizens (such as Global Crossing shareholders with modest portfolios) and, on the other hand, the privileged connection between the Democrat party and a communications corporation whose stock once soared higher than that of General Motors.
Anyone with information about Global Crossing, Winnick or McAuliffe in this matter is invited to contact Judicial Watch at 202-646-5172.
Democrats in their internal memos have gleefully stated that Enron has the potential "to reduce confidence in the Bush administration, and Republicans in particular.” This despite the fact that there is not one iota of evidence that the Bush administration did anything wrong.
If the chairman of the Democrat National Committee ends up on the wrong end of a courtroom cross-examination in the Global Crossing scandal, what happens to the "confidence” factor with regard to his party?
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