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XXXXX DRUDGE REPORT XXXXX MON JAN 28 2002 20:21:38 ET XXXXX
GLOBAL CROSSING BANKRUPTCY: GOP INSIDERS QUESTION DNC CHAIRMAN MCAULIFFE PROFIT, TURNED $100,000 INTO $18,000,000
ENRON-stung GOPers are discreetly eyeing the collapse of GLOBAL CROSSING [which on Monday became the 4th largest bankruptcy in history] and its Chairman Gary Winnick, a top Democrat donor who helped DNC head Terry McAuliffe turn a $100,000 stock investment -- into $18,000,000!
McAuliffe arranged for Winnick to play golf with President Clinton in 1999 after his cash windfall. Winnick then gave a million dollars to help build Clinton's presidential library.
A top White House source noted to the DRUDGE REPORT, with irony, the direct McAuliffe connection with Winnick and GLOBAL CROSSING.
"McAuliffe is a guy who made millions and millions and millions off this GLOBAL CROSSING stock? And the company goes bankrupt. And he has the gonads to criticize anyone on ENRON!" blasted the Bush insider who asked not to be identified.
"What did Winnick get for his money? Let's have congressional hearings! Stockholders should demand it! Will Mr. Clinton give back the money?"
McAuliffe, in his role as chairman of the Democratic National Committee, has been a vocal opponent of the ENRON collapse, telling CNN this weekend: "The people out there who are hurt the most are the small people, and once again the wealthy special interests got to take their money off the table, and that's what we need to investigate."
"The Bush administration is running fiscal policy the way folks at ENRON ran their company," McAuliffe has said.
But with shares of GLOBAL CROSSING closing at just 30 cents on Monday, and trading suspended after the Chapter 11 deal was announced, McAuliffe faded from view.
For McAuliffe, GLOBAL CROSSING turned out to be a bonanza. The stock had soared in the late 90s, when Winnick once bragged that he was the "richest man in Los Angeles." McAuliffe operated out of an office in downtown Washington that belonged to Winnick -- to help the mogul "work on deals."
McAuliffe told the NYT TIMES's Jeff Gerth in late '99 that his initial $100,000 investment grew to be worth about $18 million, and he made millions more trading GLOBAL's stock and options after it went public in '98.
Top GOP insiders were also gloating over GLOBAL CROSSING ties to other ENRON obsessives.
A major fundraising dinner for Senator Tom Daschle was bought and paid for by GLOBAL CROSSING.
Winnick gave thousands of dollars to top ENRON cop Rep. Henry Waxman during the last election, according to public records.
But as everything blurs, and blurs again in the bankruptcy cycles of the fresh century, and in a twist that will ensure GOP operatives do not ride GLOBAL CROSSING all the way into shore: Former President George Bush once made a smart move by accepting stock in a start-up company instead of his usual speaking fee when he addressed an audience in Tokyo.
Bush agreed to take shares in -- GLOBAL CROSSING LTD. in lieu of an $ 80,000 fee!
McAuliffe's Winnick reportedly suggested that Bush take his fee in stock instead of cash, and Bush agreed. The Bush stock, at its high, was worth over $ 14 million.
It is not known if he is still holding the scraps.
* * * * *
An e-mail to the DRUDGE REPORT on Monday night:
I am a consistent reader of the Drudge Report and listen to your nationwide radio program.
I am a shareholder of Global Crossing and I believe there is something terribly wrong with the whole scenario - Gary Winnick's huge profits Vs calming public statements to Shareholders, the yearly turnover of CEO's, Gary Winnick's cronies making up the BOD and that BOD not protecting Shareholders, the public statements of the most recent CEO, John Legere, Vs the bankruptcy announcement on Monday, the deal with the Chinese buying the Company for pennies - 750 million for a 22.4 BILLION dollar company - (Will our government and other major firms use this service owned by a Chinese Co.?), Andersen's involvement -- the confusing balance sheets — the lending institutions being duped, and the obvious profiting and involvement of political figures.
I hope your considerable influence will affect the bankruptcy judge, Robert E. Gerber, to deny the petition.
Sir, I can assure you that every employee and shareholder appreciates your involvement -- the little guy has suffered enough.
xxx xx xxx
Filed By Matt Drudge
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