- The Washington Times - Thursday, August 15, 2002

Asked Sunday by Sam Donaldson of ABC News if he had done anything wrong when he turned a 1997 investment of $100,000 in Global Crossing into an $18 million windfall two years later, Democratic National Committee Chairman Terry McAuliffe defensively asserted, "Well, first of all, you have no idea if I made one penny, Sam." Well, first of all, that isn't what Mr. McAuliffe told the New York Times in December 1999. "For Mr. McAuliffe and all the other early investors, Global Crossing turned out to be a bonanza," Jeff Gerth of the New York Times reported then when high-flying Global Crossing's stock sold for about $50 per share (it peaked at $64.25). Mr. McAuliffe ever the braggart "says his initial $100,000 investment grew to be worth about $18 million," Mr. Gerth reported.
Mr. McAuliffe also bragged to the Times in 1999 that he had made millions more trading Global options after the company went public in 1998. Well, do tell. Under what circumstances was Mr. McAuliffe given options by Global Crossing CEO Gary Winnick, who turned a $20 million investment into stock sales of nearly $750 million before Global collapsed, costing other investors $48 billion in market capitalization? Were the options a quid pro quo for the golf match Mr. McAuliffe arranged between Mr. Winnick and then-President Clinton? As Global Crossing's stock was plunging toward 7 cents a share, how does the DNC chairman explain the $400,000 in soft-money contributions made by Global Crossing in 2001 just before it laid off 2,000 workers in January and canceled their health insurance?
As the 1994 architect of the notorious schemes to invite major donors to the White House for the infamous "coffees" and to rent the Lincoln Bedroom to Democratic contributors, Mr. McAuliffe has never been a stranger to ethical lapses. In fact, trial testimony shed light upon his involvement in the notorious Teamster fund-raising scandal, which resulted in the conviction of former Teamster political director William Hamilton on charges of fraud, conspiracy, embezzlement and perjury. At Hamilton's 1999 trial, former DNC Finance Director Richard Sullivan implicated Mr. McAuliffe in a convoluted money-laundering scheme involving Teamster treasury funds. The money eventually, and illegally, found its way into the political coffers of then-Teamster President Ron Carey, who was later expelled from the union for corruption.
This past weekend offered a telling reminder of the millions of dollars illegally funneled from Asia, including from Chinese military intelligence, to the Clinton-Gore re-election campaign while Mr. McAuliffe served as chief Democratic fund-raiser. The DNC chairman delivered a blistering political speech Saturday in Las Vegas, the day after a Hong Kong tycoon participated in the purchase of the Global Crossing carcass for a paltry $250 million. Of course, not a dime went to stockholders, some of whom undoubtedly bought the now-worthless shares that generated Mr. McAuliffe's $18 million bonanza.
In his role as chairman of the Democratic Party, Mr. McAuliffe has abundantly demonstrated that he has as little regard for the truth as he has had for business and fund-raising ethics throughout his checkered past. In fact, his association with Global Crossing has become so unbearable for some Democrats that Michigan Rep. Bart Stupak effectively called for a congressional investigation. Noting how "odd" it was that Mr. McAuliffe was able so quickly to turn a $100,000 investment into $18 million, Mr. Stupak told Sean Hannity of Fox News Channel on Tuesday that "Global Crossing," which is already being investigated by the FBI and the Securities and Exchange Commission, "should be investigated" by Congress. For his part, Mr. Stupak promised to give Mr. McAuliffe's relationship with Global Crossing "due diligence" before the oversight and investigations subcommittee of the House Energy and Commerce Committee.
It has become increasingly clear why Mr. McAuliffe was stonewalling Mr. Donaldson's straightforward question. With pressure for full disclosure now mounting within his own party, however, Mr. McAuliffe's stonewalling tactics may soon meet the irresistible force of the public's right to know.

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