Feds Investigating Big Clinton Backer, Favors For Bill And Hil Questioned

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SEC Investigates Omaha Database Company
Wednesday November 21, 3:16 pm ET
By Josh Funk, AP Business Writer
SEC Opens Investigation Into Company Whose Founder Spent Heavily on Clinton Travel, Library


OMAHA, Neb. (AP) -- The Securities and Exchange Commission has opened an investigation into spending by database marketer in Omaha which already faces a lawsuit alleging the company misspent millions -- some of it on Bill and Hillary Clinton.

The shareholder lawsuit questions why InfoUSA Inc. founder Vin Gupta used private corporate jets to fly the Clintons on business, personal and campaign trips, why Gupta gave Bill Clinton a $3.3 million consulting contract and why the company paid for extravagant luxuries Gupta enjoyed.

The company said in a filing Tuesday that it would cooperate with the SEC's request for documents related to expense reimbursement, transactions with related parties, some corporate expenditures and certain trades of company stock.

The company did not specify what the SEC is looking for, but the lawsuit filed by two investment managers in a Delaware court may offer some clues.

Investment manager Cardinal Value Equity Partners and hedge fund Dolphin Limited Partnership filed the lawsuit earlier this year alleging Gupta misspent millions of dollars in corporate funds.

According to the lawsuit, InfoUSA has spent nearly $900,000 since 2001 flying the Clintons to domestic and international locations and political events.

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http://biz.yahoo.com/ap/071121/infousa_investigation.html?.v=3