TPM Muckraker

« previous | MUCK HOME | next »

Giuliani No Lobbyist? Depends on What You Mean by "Lobbying"

Rudy Giuliani and his cohorts at Giuliani Partners have insisted he's no lobbyist. But there's mounting evidence to the contrary. Maybe he's so averse to the term because his firm lobbied illegally.

Exhibit A is today's Time story, which for the first time reveals details about just what Hank Asher, Giuliani's troubled buddy, paid him so much money to do.

As we laid out in a series of posts last week, Giuliani struck a pretty sweet deal with Asher during his first year of business. Asher's Seisint was hocking its data-mining software, code-named MATRIX, to the government. Rudy's job was to serve as a kind of front man for the company, in part so that Asher's drug-running past wouldn't be an issue. The contract, for a previously untold amount of money, was based on a $2 million yearly fee, commissions, and stock options. A stock holder in the company was so alarmed by the giveaway that he sued Seisint; the case was settled.


Today, Time puts a price tag on all that: $30 million, $24 million of that from stock options. And what did Rudy do for the money? It turns out, plenty.

Well, first and foremost, he lobbied. A shareholder in Seisint tells Time that "nobody knew us; everybody knew him," and that with Giuliani, "the doors were wide open. It was almost a flood of business opportunities." The company's in-house lobbyist says that Giuliani set up a meeting at the Department of Homeland Security.

The White House looks like another one of those doors that Giuliani opened. In January of 2003, just a month after Seisint hired Giuliani, Asher gave a presentation to Vice President Dick Cheney, FBI director Robert Mueller, Homeland Security director Tom Ridge, and Gov. Jeb Bush (R-FL) in the Roosevelt Room at the White House on MATRIX, according to documents obtained by the ACLU back in 2004. (The ACLU doggedly opposed MATRIX; Asher responded by once joking that the ACLU "is probably funded" by Al Qaeda. I'm sure he and Cheney got along fine.)

It wasn't the first time Giuliani had used his connections to ring up bigwigs on behalf of his clients. When Giuliani Partners were representing Purdue Frederick, the manufacturers of OxyContin, Giuliani personally met with Drug Enforcement Agency chief Asa Hutchinson when the DEA launched a criminal investigation of the company.

Giuliani and his associates have denied in a variety of ways that he acted as a lobbyist. In 2004, when talking to the New York Times, he simply noted that he's not a registered lobbyist. The senior managing partner of his firm, Michael Hess has been more direct. When the Times questioned him whether Giuliani sitting down with public safety officials on behalf of the firm's client Nextel was lobbying, he said, "That's not lobbying... that's the First Amendment.''

Hess was even more direct with The Washington Post this spring:

[Hess said], emphatically, that the firm has not tried to use Giuliani's political connections to influence federal officials.

"We don't do lobbying. And therefore that is not something where we are running to talk to a regulator or an agency," Hess said. "In terms of people he has known in the government -- whether city, state or federal -- we just don't do that."

So much for that. Clearly Giuliani was lobbying on behalf of Seisint. And in return for opening doors, Giuliani Partners got commissions on state and federal contracts -- an arrangement that's illegal. But Giuliani's people have a defense for that. Sorta:

A [Giuliani Partners] official who refused to be named insists that the firm never received "commissions" from Seisint — despite what [Michael Brauser, a major shareholder in Seisint] and [Seisint's in-house lobbyist, Dan Latham] remember and despite the fact that payments to GP are labeled "commissions" in both the minutes of a Seisint board meeting and a key financial statement. Instead, says the official, GP earned "special bonuses" based on the achievement of corporate "milestones."

So if Rudy wasn't lobbying, then what exactly was he doing to earn the $30 million? Maybe that shareholder had a point.


14 Comments

| Leave a comment
user-pic

You whiney democratic wimps

Oh gosh, gee wiz, oh your so strong,
can I feel your muscles. Oh I am just swooning over the raw display of Democratic prowess. Oh my , I feel a bead of sweat trickling down my breast bone.
I do declare I think I may swoon.

Yeah , all you Democratic losers are so pitiful. Get use to republican power -
because there is more to come for many many years.

George Bush is the best thing that ever happened to you all, your like a bunch of
babies who need to be suckled on a republican tit.

user-pic

Can I ask what the f___ Jeb Bush was doing at that White House meeting? Do Governors routinely get access to high level security data / topics?

user-pic

No doubt in my mind that "database wizard" Hank Ashe and database wizard Karl Rove teamed up.

This is exactly the sort of thing that Rove would be ALL OVER.

user-pic

"The White House looks like another one of those doors that Giuliani opened. In January of 2003, just a month after Seisint hired Giuliani, Asher gave a presentation to Vice President Dick Cheney, FBI director Robert Mueller, Homeland Security director Tom Ridge, and Gov. Jeb Bush (R-FL) in the Roosevelt Room at the White House on MATRIX, according to documents obtained by the ACLU back in 2004. (The ACLU doggedly opposed MATRIX; Asher responded by once joking that the ACLU "is probably funded" by Al Qaeda. I'm sure he and Cheney got along fine.) "

Could this possibly be one of the famed meetings redacted in it's entirety related to Ashcroft's 2004 hospital visit?

user-pic

Sorry for being such a douche-bag! I'm just so stupid that I can't have an honest opinion without insulting people. It was my mommies fault for not breast feeding me. I desire attention and I LOVE muscles! I really want to stroke Rudy so bad...again..I'm sorry and pathetic.

user-pic

I take Rudy Guiliani at his word that he was not lobbying. I would certainly hope and expect that he would research this area of the law, and take steps to stay on the proper side of his 'accessing government decision makers' activities.

But I wonder exactly WHAT it is that registered lobbyist DO do that GP did not do. I find it hard to imagine what that nebulous activity is, that GP so carefully stayed away from since they never bothered to register as lobbyists.

Can anyone offer me a clue? Thanks.

user-pic

I love it

user-pic

Interesting. I see that former US Secret Service Director (Clinton appointee) Brian Stafford appears as a representatigve of Seisint in this ACLU document:

http://www.aclu.org/FilesPDFs/matrix%20meeting%20minutes%20from%2011-5-03.pdf

user-pic

Wouldn't it be ironic if, after all of this, Rudy! does not become president and, as more of his true character gets revealed, he loses his mojo.

Giuliani Partners no longer has access to the influential, million dollar contracts failed to get renewed, Judith runs off with a Democrat...

user-pic

And now Brian Stafford is tied up in a capital management firm with Richard Clarke and Roger Cressey?

http://www.goodharborpartners.com/team.html

user-pic

Hank Asher is the subject of this Vanity Fair story:

http://www.vanityfair.com/ontheweb/features/2004/12/matrix200412

He apparently had some success using his programming skills (two days after 9/11) to put together a list of possible terrorist suspects):

By now, the F.B.I. had a list of suspects drawn from the passenger manifests of 9/11's four ill-fated flights. But none of those names had been released to the public that Friday when Asher came up with his High Terrorist Factor list—from the program that would later be given the acronym MATRIX, for Multi-state Anti-Terrorism Information Exchange. The list was forwarded through Asher's law-enforcement contacts to Brian Stafford, head of the U.S. Secret Service, and to a senior F.B.I. agent. The feds were stunned.

MATRIX would soon be heralded as a state-of-the-art terrorist-tracking tool by Vice President Dick Cheney and Homeland Security chief Tom Ridge, as well as former New York mayor Rudy Giuliani and senior law-enforcement officials around the country.

user-pic

to the jack ass neo con.

You don't have to be a democrat to see an idiot from a mile away, such as youirself.

user-pic

The interesting thing that I see is that a political person will always lobby in some manner. They want to us to know where they stand on certain issues and they want to try and sway opinions of their viewers. I think that all his actions where expected and shouldn't be surprise to anyone in the political world.
Narconon Vista Bay

user-pic

I'm not surprised at the out come of this team up. He is there for the purpose of making money and serving the governments needs. Which unfortunately doesn't fall under the peoples needs. If we all stepped up as the stock holder did we may just have a chance. The people need to act as a whole and regulate this problem.

Gus
Narconon Vista Bay

Leave a comment

Advertisement
Please disable your adblocker!
Ads are how we pay the bills!

Subscribe
Tip Line

Josh
Marshall

Bio

Zachary
Roth

Bio

Advertise Liberally
Share
Close Social Web Email

"To" Email Address

Your Name

Your Email Address