Chuck Hagel & AIS (American Information Services) ES&S (Election Systems & Software)

[Earth_First]

While the 2008 rollout continues, I figured I'd rollout a little background reading...

...While Diebold has received the most attention, it actually isn't the biggest maker of computerized election machines. That honor goes to Omaha-based ES&S, and its Republican roots may be even stronger than Diebold's.

The firm, which is privately held, began as a company called Data Mark, which was founded in the early 1980s by Bob and Todd Urosevich. In 1984, brothers William and Robert Ahmanson bought a 68 percent stake in Data Mark, and changed the company's name to American Information Services (AIS). Then, in 1987, McCarthy & Co, an Omaha investment group, acquired a minority share in AIS.

In 1992, investment banker Chuck Hagel, president of McCarthy & Co, became chairman of AIS. Hagel, who had been touted as a possible Senate candidate in 1993, was again on the list of likely GOP contenders heading into the 1996 contest. In January of 1995, while still chairman of ES&S, Hagel told the Omaha World-Herald that he would likely make a decision by mid-March of 1995. On March 15, according to a letter provided by Hagel's Senate staff, he resigned from the AIS board, noting that he intended to announce his candidacy. A few days later, he did just that.

A little less than eight months after steppind down as director of AIS, Hagel surprised national pundits and defied early polls by defeating Benjamin Nelson, the state's popular former governor. It was Hagel's first try for public office. Nebraska elections officials told The Hill that machines made by AIS probably tallied 85 percent of the votes cast in the 1996 vote, although Nelson never drew attention to the connection. Hagel won again in 2002, by a far healthier margin. That vote is still angrily disputed by Hagel's Democratic opponent, Charlie Matulka, who did try to make Hagel's ties to ES&S an issue in the race and who asked that state elections officials conduct a hand recount of the vote. That request was rebuffed, because Hagel's margin of victory was so large.

As might be expected, Hagel has been generously supported by his investment partners at McCarthy & Co. -- since he first ran, Hagel has received about $15,000 in campaign contributions from McCarthy & Co. executives. And Hagel still owns more than $1 million in stock in McCarthy & Co., which still owns a quarter of ES&S.

http://www.motherjones.com/commentary/columns/2004/03/03_200.html