HUGE BUSH STOCK SLEAZE SCANDAL!!! LAWBREAKER-IN-CHIEF! Dubya Broke Law Often, Reaped Big $$$ But Poppy's SEC Shut Down Probe Cover Up Completed to Protect Dubya!! The Full Story Of Dubya's Rip-Off Scam EXCLUSIVE!
TexasDude,
The Media Whores Online folks sure have a way with understatement, don't they?
mediawhoresonline.com
WASHINGTON, D.C., July 2, 2000: Special to MWO) In a shocking new development in the mounting corporate corruption scandals, it has been revealed that George W. Bush violated securities regulations at least four times in the 1980's and 1990's -- including one violation that occurred while Bush was completing precisely the sort of stock-dump swindle which his Enron executive buddies allegedly pulled off last year.
The Securities and Exchange Commission discovered aspects of Bush's rip-off at the time. An internal SEC report, dated April 9, 1991 and later obtained and released by the Center for Public Integrity, noted that Dubya had established a pattern of violating SEC reporting regulations. The report also announced that SEC investigators had opened an investigation into Bush's insider stock dumping the year before.
But suddenly, under then-President George H.W. Bush's hand-picked SEC chairman, the agency halted its probe of Dubya, brought no charges, and deep-sixed the case.
Now, in light of George W. Bush's denunciation of exactly the sort of practices that he himself used to build his fortune, the Bush Administration is in deep crisis.
Washington political observers are saying that only a full-scale probe of Bush's past corporate criminal activities -- and the possible cover-up of those activities by his father's appointees -- can restore confidence in Dubya's shaken administration.
The case goes back to the younger Bush's involvement with the Harken Energy Corporation twelve years ago.
Here's the full story:
Dubya and Harken Energy: The SEC Cites First Wrongdoing
In 1990, Bush was a member of Harken's board of directors and one of two members of its audit, fairness and special committees. (Harken had bought Bush's failing oil company, Spectrum 7, for $2 million in stock, even though Spectrum was a big money loser.) Bush and another director, E. Stuart Watson, served on Harken's "fairness committee" to determine whether a restructuring of the company would adversely affect ordinary shareholders.
Harken's annual report for 1989 showed a profit of $8 million on the sale of its subsidiary, Aloha Petroleum. Aloha was sold to a partnership of Harken "insiders" called International Marketing & Resources (IMR) for $12 million -- $11 million of which was financed through a note held by Harken.
When SEC accountants eventually discovered that Harken had concealed its 1989 losses by claiming a profit on the sale (despite the fact that Harken held the note on the sale) the Commission objected, saying that the income could only be recognized when the principal on the loan was paid.
The Arthur Andersen Connection
According to their SEC Proxy statement on May 1, 1991, Harken Energy Corporation had employed Arthur Andersen & Co. for accounting services since 1976 and the Harken audit committee, including Bush, met with auditors from Arthur Andersen. The Proxy statement stated, "Arthur Andersen & Co. has continuously served Harken as independent auditors since 1976." A July 25, 1991 letter from the Securities and Exchange Commission asked for Harken to "Identify the representatives of Arthur Andersen & Co., Inc. present at the June 11, 1990 meeting of Harken's Audit Committee."
In a December 6, 1990 letter to Harken Energy Corporation, the SEC asked why Harken and the company's independent auditors -- Arthur Andersen -- qualified the sale of Aloha Petroleum as a capital gain. The SEC letter asked Harken to provide additional information about "The financial statement of IMR which were relied upon in the Aloha transaction that enabled the Company and its independent auditors to reach the conclusion that the collection of the note from IMR was reasonably assured at the time of sale." The SEC also asked for Harken to "Describe any plans, arrangements or understandings which obligated Harken to provide financial support to Aloha on an ongoing basis and the consideration that was given by Harken and its independent accountants in determining that full gain recognition was appropriate."
After the SEC discovered Harken's concealment of real losses, Harken was forced to amend its 1989 annual report. The amended filing declared that Harken's 1989 losses were actually $12,566,000, rather than the $3,300,000 loss it had earlier declared.
What Did Dubya Know? Everything
When Did He Know It? In Plenty of Time
Harken director E. Stuart Watson said both he and Bush were aware of Harken's finances. "You bet we were. ... We were both trying to keep that company on the straight and narrow," Watson said. According to the Dallas Morning News, Watson said, "they [Watson and Bush] were kept current on the company's finances and knew that losses were to be announced." Watson added that earnings reports at Harken "were never a surprise to us." Watson said that, as members of the audit committee, he and Bush were briefed by the company treasurer and the inside and outside auditors.
MORE ON THE WAY........ |
