September 8, 2004

i do my job each day empties crushed and filed away

* Excerpt relating to the insider trading allegations realting to Bush regarding Harken Energy from Molly Invins and Lou Dubose's Bushwacked: Life in George W. Bush's America:

"One of Bush's white knights, a friend of the Bush family consigliere James Baker III, is so interesting that to leave him out is the journalistic equivalent of a breach of fiduciary responsibility. Philip Uzielli's $1 million cash-for-trash deal in 1982 allowed GeeDubya to keep his company alive long enough to sell it to Spectrum 7, then to sell the again-sinking Spectrum 7 to Harken and then to unload his sinking Harken stock -- just before the bad news became public [think Martha Stewart]-- for a large enough profit to buy 2 percent of the ownership of a baseball franchise that made him $15 million in less than 9 years. Philip Uzielli (Uzi to GeeDubya) is a Panamanian businessman and Princeton classmate of James Baker. In 1982 Uzi was listed as CEO of Panama's Executive Resources and as a director in Harrow Corporation and Leigh Products. As [reported in a previous book by these authors], when Dubya's company Arbusto, was in a terminal cash crunch, Uzi showed up and paid $1 million for 10 percent of a failing company valued at $382,376, according to the company's financial statements. In other words, Uzi paid $1 million for $38,200 in equity. Bush had changed the name of Arbusto to Bush Exploration after his father became VP. By the time of the corporate name change, Arbusto had drilled so many dry holes that West Texas oilmen called it 'are-busted.'"
"Arbusto was not an oil company so much as it was a tax write-off company, taking advantage of the IRS tax code provisiohn that allowed investors to decuct up to 75 percent of their losses in the oil business. Bush did not strike oil, he stuck money from the friend of his daddy."
Bush failed to regularly file insider trading reports to the SEC which caught the eye of the SEC. At the time "the chairman of the SEC was Richard Breeden, who had worked for poppy Bush as an economic advisor. The walls of Breeden's office were so plastered with photos of poppy and Barbara Bush that a New York Times reporter observered: 'George Bush is Breeden's Mao.' The general counsel at the SEC was James Doty, the same James Doty of the Baker Botts firm, who represented GeeDubya when he bought his 2 percent interest in the Texas Rangers with the money he got from dumping Harken stock. The Houston firm was founded by the great-great grandfather of James Baker III, secretary of state under Bush pere and the point man for Bush the younger after the disputed 2000 election." Arthur Anderson was the accounting firm involved in the Harken trades.
"Bush filed four late forms reporting four separate [insider] transactions totaling $1,028,935 [way more than Martha Stewart]. During his campaign for Governor of Texas, Bush repeatedly told reported he had been exonorated by the SEC, adn Ari Fleischer repeated the same line in the summer of '02. But the report issued by the SEC's enforcement division in 1993 specifically said the investigation 'must in no way be conscrued as indicating that the pary has been exonorated.'"
"Harken was not Enron, but it was certainly Enron in the making. What Bush took out of Harken was also 20 times as much as Bill and Hillary Clinton lost in a crummy Arkansas Real Estate deal that cost American taxpayers 70 million to investigate.


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