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Billionaire Businessman Gave Kerik $250K "Loan"
Bernie Kerik had a talent for making wealthy friends -- and then hitting them up for money. It was a talent that prosecutors say crossed the line into bribery on at least one occasion.
Over the weekend, The New York Times revealed the details of another one of those deals. In 2003, while Kerik was on his short stint with the Coalition Provisional Authority in Iraq, Israeli billionaire and industrialist Eitan Wertheimer loaned Kerik $250,000.
But it wasn't what you'd call a straightforward loan. The money went first to Kerik's friend and Brooklyn businessman Shimon Cohen, who then passed it on to Kerik. It was provided with no interest, no conditions, and seemingly no questions asked.
There's even more grounds for suspicion. The loan only came to light after the Bronx district attorney's office and New York City’s Department of Investigation launched an investigation of Kerik's personal finances in 2005. They interviewed Cohen in June of that year about the loan -- he fessed up to having given the money, but said nothing about the fact that Wertheimer had financed it. Nine days later, two years after the loan was originally given, Kerik paid off the loan in full -- with interest.
The indictment of Kerik earlier this month included a charge of lying to the Federal Government about the loan (Both Wertheimer and Cohen are identified only as John Does in the indictment.). That's because when Kerik filled out a financial disclosure form that covered his time in Iraq, he didn't report it. Prosecutors pointedly mention that Wertheimer's companies do "business with the federal government." In other words, it was precisely the sort of conflict of interest that financial disclosure requirements are designed to expose.
Now, the open question is what Wertheimer thought he was getting for his money.
As the Times notes, his "family’s vast holdings include companies with United States Defense Department contracts." One of those companies is Blades Technologies, which makes engine parts for Pratt & Whitney, a giant manufacturer of jets for the U.S. He's also a shareholder of a company called Orsus, a company that designs software for control rooms, which is also a contractor for the DoD and Department of Homeland Security. The list goes on. Presumably Kerik would have been available for a favor.
And keep in mind that at the time Kerik went to Iraq, he was still a partner with Giuliani's consultancy Giuliani Partners, which he'd joined after stepping down as New York City Police Commissioner at the end of 2001. A spokeswoman for the firm told the Times "the company had not had any business relationship with any of Mr. Wertheimer’s companies during the time Mr. Kerik was affiliated with the business."
Of course, there's always the chance that Wertheimer, a noted philanthropist, was just being generous.
Note: The Times has a funny detail that will strike Kerik muck aficionados as classic Kerik:
Mr. Wertheimer met Mr. Kerik through Mr. Cohen, a longtime friend, according to associates, and the two spent time together during Mr. Kerik’s trip to Israel in August 2001. Later that year, as he left his New York City police post, Mr. Kerik handed out 19 gold and blue enamel badges that declared the recipients “Honorary Police Commissioners,” and Mr. Wertheimer received one, as did [Nathan Berman, a real estate developer who has also lent Mr. Kerik money] and Judith Regan, then Mr. Kerik’s lover and publisher. The real estate developer Steven C. Witkoff, who is listed in the indictment as John Doe No. 5, who paid more than $236,000 in rent for Mr. Kerik from 2001 to 2003, also received one of the badges.
Do you see a pattern?

Comments (13)
Gary wrote on November 26, 2007 3:57 PM:What the heck was Bernie Kerik doing in Israel in August 2001?
Mike wrote on November 26, 2007 4:22 PM:Rudy Guliani was too busy before 9-11 hiding the interests of Bernie Kerik who is now under federal indictment.He knew about his mafia connections and kickbacks.
petesmom wrote on November 26, 2007 5:02 PM:He was protecting his friend - a pedophile preist.
He got kickbacks from the company that made defective radios that firemen had to use.
He was seeing another women while married.
No wonder he did not protect Americans before 9-11.
And murder rates went up by over 3000 in 2001 alone while Guliani was the mayor of new york.
So! I wonder who the rest of the 19 recipients of "honorary police chief" badges were? And what did they do to deserve badges?
Wade Morris wrote on November 26, 2007 5:05 PM:WHo did the rest of those badges go to. I say theres more muck to be had!!
macaraca wrote on November 26, 2007 5:50 PM:And where did he get the 250K to pay back the loan the minute it came to light?
scribe wrote on November 26, 2007 6:03 PM:I remember the whole "badges" issue being a something of a small-scale scandal, as the recipients were using them to do things like beat parking tickets, get around traffic restrictions, intimidate cops, and the like. IIRC, it was reported in one of the tabloids (NYDN?) back when it happened, but I think it got buried under the weight of 9/11 coverage.
brian wrote on November 26, 2007 9:06 PM:Print up these T-shirts :
I HAD SEX WITH KERIK
bwindrip wrote on November 27, 2007 9:27 AM:AND ALL I GOT WAS THIS LOUSY POLICE BADGE
Mike wrote on November 26, 2007 4:22 PM:
"And murder rates went up by over 3000 in 2001 alone while Guliani was the mayor of new york."
(Check that 3000 number.)
Rick wrote on November 27, 2007 12:23 PM:Badges? We don't need no stinking badges. Just the access and favors.
Alguien wrote on November 27, 2007 1:52 PM:brian wrote on November 26, 2007 9:06 PM:
Print up these T-shirts :
I HAD SEX WITH BENIE KERIK AND ALL I GOT WAS THIS LOUSY POLICE BADGE!
That was brilliant!
Alguien wrote on November 27, 2007 2:01 PM:A pattern?
I see a LOT of PATTERNS! Not just one!
Getting money from rich NY Jews in exchange for "honoraery badges"
"Business" trips to Israel.(??)
A short stint with the Coalition Provisional Authority in Iraq. (???)
Partnering with Giuliani in Giuliani Partners.
Can anybody begin to imagine what would have happened if Bernie had managed to get the position as Head of the Dept. of Homeland Security???
Thomas Russo, NY wrote on November 28, 2007 5:12 PM:Rudy for President.
Thomas wrote on November 28, 2007 5:24 PM:Kerik was mandated to disclose this loan on a NYC Financial Disclosure form upon leaving NYC service.
Did he disclose this loan???????
Because if he didnt, add an additional charge.