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Politics : Bush Administration's Media Manipulation--MediaGate? -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (8838)	10/17/2006 12:36:21 PM
From: American Spirit	Read Replies (1) \| Respond to of 9838

Feds investigating Frist's HCA stock sale Journal reports probe into whether Senate leader had insider knowledge Updated: 9:44 a.m. PT Sept 23, 2005 NASHVILLE, Tenn. - Hospital operator HCA Inc. said Friday that federal prosecutors have issued a subpoena for documents the company believes may be related to the sale of its stock by Senate Majority Leader Bill Frist. A release from the Nashville-based company said the subpoena came from the U.S. attorney for the Southern District of New York. Frist’s office confirmed the SEC is looking into the sale. “Not surprisingly, the Securities and Exchange Commission contacted Senator Frist’s office after the story appeared in the press about the sale of his Hospital Corporation of America stock,” Frist spokesman Bob Stevenson said in an e-mail. “The majority leader will provide the SEC any information that it needs with respect to this matter.” Frist traded using only public information, and only to eliminate the appearance of a conflict of interest, Stevenson said. The SEC had not contacted HCA as of Friday morning, said HCA spokesman Jeff Prescott. He declined further comment. Company founded by Frist's father HCA, the nation’s largest for-profit hospital company, was founded by Frist’s father and his brother was formerly its CEO and chairman and remains on the board of directors. Frist asked a trustee to sell all his HCA stock in June, near a 52-week stock price peak of $58.40 and at the same time HCA insiders were selling off shares. Reports to the Securities and Exchange Commission showed insiders sold about 2.3 million shares, worth about $112 million, from January through June, said Mark LoPresti of Thomson Financial. The sale came about two weeks before the company issued a disappointing earnings forecast that drove its stock price down almost 16 percent by mid-July. They still have not recovered, closing Thursday at $45.90. The value of Frist’s stock at the time of the sale was not disclosed. Earlier this year, he reported holding blind trusts valued at $7 million to $35 million. Insider knowledge? For years, Frist was criticized for holding HCA stock while directing legislation on Medicare reform and patient issues. His office has consistently deflected criticism by noting that his assets were in a blind trust and not under his active control. Frist, a Tennessee Republican, is widely considered a potential presidential candidate in 2008. HCA said the subpoena seeks the “production of documents,” and said it plans to fully cooperate with the district attorney’s investigation. The Wall Street Journal reported Friday that the SEC is looking into whether Frist had any inside knowledge that prompted his sales. On Thursday, SEC spokesman John Nester would neither confirm nor deny that Frist or any officer or director of HCA is the subject of an investigation, citing the agency’s policy. Shares of HCA fell 20 cents to $45.70 in premarket trading on the New York Stock Exchange.

To: Proud_Infidel who wrote (8838)	10/17/2006 12:37:35 PM
From: American Spirit	Read Replies (1) \| Respond to of 9838

Cheney's Halliburton Ties Remain Contrary To Veep's Claims, Researchers Say Financial Links Remain WASHINGTON, Sept. 26, 2003 -------------------------------------------------------------------------------- The move to outsource some military support functions began while Cheney was defense secretary. (AP) Quote "I ask the vice president to stop dodging the issue with legalese." Sen. Frank Lautenberg, D-N.J. -------------------------------------------------------------------------------- (CBS/AP) A report by the Congressional Research Service undermines Vice President Dick Cheney's denial of a continuing relationship with Halliburton Co., the energy company he once led, Sen. Frank Lautenberg said Thursday. The report says a public official's unexercised stock options and deferred salary fall within the definition of "retained ties" to his former company. Cheney said Sunday on NBC that since becoming vice president, "I've severed all my ties with the company, gotten rid of all my financial interest. I have no financial interest in Halliburton of any kind and haven't had, now, for over three years." Democrats pointed out that Cheney receives deferred compensation from Halliburton under an arrangement he made in 1998, and also retains stock options. He has pledged to give after-tax proceeds of the stock options to charity. Cheney's aides defended the assertion on NBC, saying the financial arrangements do not constitute a tie to the company's business performance. They pointed out that Cheney took out a $15,000 insurance policy so he would collect the deferred payments over five years whether or not Halliburton remains in business. Lautenberg, D-N.J., asked the Congressional Research Service to weigh in. Without naming Cheney or Halliburton, the service reported that unexercised stock options and deferred salary "are among those benefits described by the Office of Government Ethics as 'retained ties' or 'linkages' to one's former employer." Lautenberg said the report makes clear that Cheney does still have financial ties to Halliburton. "I ask the vice president to stop dodging the issue with legalese," Lautenberg said. Cathie Martin, Cheney's spokeswoman, said the question is whether Cheney has any possible conflict of interest with Halliburton, "and the answer to that is, no." Cheney was chief executive officer of Halliburton from 1995 through August 2000. The company's KBR subsidiary is the main government contractor working to restore Iraq's oil industry in an open-ended contract that was awarded without competitive bidding. According to Cheney's 2001 financial disclosure report, the vice president's Halliburton benefits include three batches of stock options comprising 433,333 shares. He also has a 401(k) retirement account valued at between $1,001 and $15,000 dollars. His deferred compensation account was valued at between $500,000 and $1 million, and generated income of $50,000 to $100,000. In 2002, Cheney's total assets were valued at between $19.1 million and $86.4 million. Earlier this month, a federal judge dismissed a lawsuit that accused Halliburton and Cheney of misleading investors by changing the way the company counted revenue from construction projects. The lawsuit was filed last year by Judicial Watch, a conservative public interest group, on behalf of three small investors, who said the company tried to polish financial results by booking revenue on cost overruns before it was certain of getting paid. Halliburton has contracts worth more than $1.7 billion for its work in Iraq, and it could make hundreds of millions more from a no-bid contract it was awarded by the Army Corps of Engineers, The Washington Post has reported. According to The Post, while Cheney was defense secretary the Pentagon chose Halliburton subsidiary Brown & Root to study the cost effectiveness of outsourcing some military operations to private contractors. Based on the results of the study, the Pentagon hired Brown & Root to implement an outsourcing plan. Cheney became Halliburton CEO in 1995. ©MMIII, CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

To: Proud_Infidel who wrote (8838)	10/17/2006 12:39:27 PM
From: American Spirit	Read Replies (2) \| Respond to of 9838

Duke Cunningham's dirty money stains Hunter, too By: STANLEY F. ZUBEL Former U.S. Rep. Randy "Duke" Cunningham, R-Escondido, is headed to prison despite the efforts of a number of local notables who have publicly urged leniency and forgiveness. Chief among these Cunningham apologists is none other than Rep. Duncan Hunter, R-Alpine, who has variously called for prayer; excoriated the U.S. attorney and urged the sentencing judge to go easy on Cunningham. Hunter's defense of his former congressional colleague is understandable: The two of them worked closely together for more than 15 years. According to published reports, Hunter also accepted money from and delivered favors to Mitchell Wade and Brent Wilkes, the same "co-conspirators" who bribed Cunningham. In November 1990, when Cunningham was first elected to Congress, Hunter had been a congressman for 10 years. With Hunter's assistance, Cunningham quickly landed a seat on the Armed Services and the Merchant Marine and Fisheries Committees. In 1997, both Hunter and Cunningham sat together on the House National Security Committee. In the mid-90's, both Hunter and Cunningham took thousands of dollars in campaign contributions from individuals desiring to sell automated document conversion systems to the military. Between 1992 and 1997, Hunter received thousands from Brent Wilkes, whose company Audre, Inc., was selling document conversion software that the Pentagon never asked for and didn't want. In October 1997, Hunter and Cunningham utilized the stealthy "earmark" process to funnel $20 million for unnecessary and unwanted document conversion systems; the next year, an additional $25 million was allocated, $9.7 million of which went to ADCS, Inc., another Brent Wilkes entity. Hunter and Cunningham were working together on the same projects with the same crooks at the same time. Cunningham, the less polished of the two, wasn't satisfied with hefty "campaign contributions," and traded his office for a yacht, a Rolls-Royce, antiques and ultimately, a mansion. This is not to say that the rewards Hunter received were insubstantial or untainted. Between 1995 and 2005, Brent Wilkes and his associates gave Hunter campaign and PAC contributions totaling almost $46,000. In December 2005, Hunter belatedly directed that the tainted contributions from Wilkes et al. be given to the Injured Marine Semper Fi Fund. Apparently, Hunter didn't recognize that these contributions were in effect a quid pro quo until the pressure of public scrutiny became too great to resist. Instead of giving it to charity, Hunter should have returned the money to the United States government from whence it was taken through corrupt lobbying and contracting practices. Hunter should explain why he failed to act when he saw, over a period of years, the obscene wealth being amassed by Cunningham, his close social, political and professional colleague. Hunter must have known that Cunningham wasn't getting rich on his federal salary alone. Maybe it's asking too much to suggest that Hunter should have blown the whistle on his old friend. But some well-timed straight talk might have saved Cunningham from prison. Duncan Hunter should publicly condemn Cunningham's crimes and energetically support real lobbying reform, including the elimination of earmarks. In so doing, he would do well to recall his own associations with Wilkes et al., and in bidding Cunningham prison farewell, reflect on the possibility that "but for the grace of God go I."