Last week over at TPMmuckraker, Paul Kiel told you about Hank Asher, the confessed drug smuggler turned multimillionaire database guru who hooked up with Rudy Giuliani on a couple of different business ventures. Very mucky looking stuff, especially after Asher’s name popped up in the public corruption indictment of the Orange County sheriff.
Now Time has a big new story out on the deal Rudy’s firm had with one of Asher’s database companies, Seisint. Turns out Giuliani Partners pulled down $30 million in one year on the Seisint contract.
And how exactly did Rudy’s firm earn this money? Take a look:
In the first year, GP earned $6.5 million, Seisint records show, in part for what Brauser and Seisint’s in-house lobbyist, Dan Latham, say were commissions for state and federal contracts. . . .
But the Seisint deal wasn’t as perfect as it seemed. One problem: the payment of percentages or commissions to “solicit or secure” government contracts is prohibited by federal law and laws of some states. . . . A GP official who refused to be named insists that the firm never received “commissions” from Seisint â despite what Brauser and 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.”
Funny, Rudy never registered as a lobbyist because even though he and his clients were using his name to advance their interests with the federal and state governments, he claimed he never actually lobbied. And now the commissions he got for securing government contracts through his savvy “not lobbying” aren’t really commissions but “special bonuses.”
Nice work if you can get it. Unless it all turns out to be illegal.
