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Reply #4: Bush family profits from Homeland Security Patriot Act [View All]

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Carl Brennan Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-31-04 02:24 PM
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4. Bush family profits from Homeland Security Patriot Act
Edited on Fri Dec-31-04 02:27 PM by Carl Brennan
Bush family profits from Homeland Security Patriot Act:
< >
Published on Wednesday, November 27, 2002 by the Prince George's Journal
Bush Family Dipping Into Security Pie
by Margie Burns
The full effects of the 2001 so-called "USA Patriot Act" have not yet been felt, fortunately. But one of its first effects has been to
benefit the president's brother, Marvin.

Marvin P. Bush, one of George W. Bush's three younger brothers, is
co-founder and partner in Winston Partners, a private investment firm
in Alexandria, Va. Winston Partners in turn is part of a larger
venture capital entity called the Chatterjee Group, headed by venture
capitalist Purnendu Chatterjee. (Venture capital firms provide money
to start-up businesses and other companies, usually in return for
equity and some managerial say in the company.)

Through this and other business relationships, this Bush sibling is
positioned to do very well in high-tech activities as a result of
provisions of the

Profits from the Patriot Act:
Inevitably, many companies are aggressively marketing services to make
businesses "Patriot Act"-compliant: that is, they sell computer
systems to enable banks to argue successfully to Uncle Sam that
they're not laundering money for terrorists. One of the most
aggressive is Sybase Inc., which developed a "Sybase PATRIOT
compliance Solution" months ago. Sybase, which said it wanted foreign
banks as customers (it already had a deal with the People's Bank of
China), landed Sumitomo Mitsui Bank in time for the October 2002
compliance deadline.

This is where Winston Partners comes in. The Chatterjee Group,
including Winston Partners, owns 5.5 million shares in Sybase
(Chatterjee businesses also have been paid thousands more shares in
Sybase). SEC filings show that Winston Partners LP owns 1,036,075
shares in Sybase; Winston Partners LDC holds 1,317,825 shares; and
Winston Partners LLC owns 1,221,837 shares. The shares owned by the
subsidiaries are collectively managed in funds for Winston Partners by
Pernendu Chatterjee. There is also a Chatterjee Charitable Foundation.

Business for Sybase is business for Bush, and the Patriot Act boosted
business. Not that the Patriot Act is Sybase's only federal conduit. The companyis also a significant government contractor (especially nowadays),
with contracts from the Agriculture Department, the Navy ($2.9 million
in 2001), the Army ($1.8 million in 2001), the Defense Department
($5.3 million in 2001), Commerce, Treasury and the General Services
Administration among others. The federal procurement database lists
Sybase's total awards for 2001 as $14,754,000.

Sybase is only one of the companies with federal contracts from which
Marvin Bush's firm derives financial benefit. Winston Partners'
portfolio also includes Amsec Corp., which got Navy contracts worth
$37,722,000 in 2001.
The potential for abuse here can hardly be overstated. A branch of the
military or other government agency that risked funding cutbacks, for
example, could throw up a buffer by awarding a contract benefiting the
First Family. Why spend money on a lobbyist in the industry, when you
might have one in the White House?

Now let's step back and look at the big picture. The president's
brother is marketing to offshore customers (shipping out American
jobs, be it noted). He is closely linked to entities marketing
"outsourcing" and "global alternative investments" yet more
aggressively. Companies associated with them are doing other high-end
versions of the same. And some companies in which they have a stake
are involved in the most sensitive technology outside nuclear weapons
- being marketed simultaneously to the U.S. government, to foreign
banks and to the states (Colorado, Texas, Oklahoma, New Jersey and New
York also purchase from Sybase). This is "security"?
Nor is Marvin Bush the only family member in this picture. His brother
Jeb Bush, Florida's governor, is also an investor in the Winston
Capital Fund, managed by Marvin Bush's firm. And Indigo Systems Corp.,
another federal contractor ($2,629,000 in 2001 from Defense and NASA),
is substantially backed by The Carlyle Group, the global finance
company. Who's that? Why the President's father, George H.W. Bush, sits on their board.

As we used to say in Texas, son of a gun.
Burns, a writer and teacher, lives in Cheverly, Maryland. . Securities and Exchange Commission
filings show that the Chatterjee Group consists of Winston Partners,
L.P.; and a half-dozen other entities with addresses in the Cayman
Islands, the Netherlands Antilles, the Isle of Man and Delaware.
Bush's partner is Scott Andrews, with whom he went to school. Winston
Partners has two branches, hedge funds and private equity funds,
engaged in a variety of investments, including global "outsourcing"
and offshore information technology.

H.R. 3162, called "The Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act"
(or USA Patriot), was designed to prevent money laundering and
requires banks to "know their customers."

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