Halliburton Story Part VII: By Hook, By Crook, or By Swindle - Dave Swindle & the Halliburton/KBR...

[CorpGovActivist]

... Escape Plan.

Earlier this week, headlines began popping up, suggesting that a relative "newcomer" on the block will be "challenging" Halliburton/KBR for its lucrative defense logistics support contracts (e.g., LOGCAP): http://www.google.com/search?hl=en&lr=&q=swindle+dominy+snow+iap+kbr

That's got Antitrust Division of the DOJ written all over it, folks. Collusive bidding practices in Federal Government contracting are a big no-no. This is like putting a "ringer" into a prize fight; competitive bids are supposed to involve genuine competition, not a sham show of said. A sweetheart no-bid contract, by any other name, smells just as foul.

- Dave

P.S. My group's boss reported to Dave Swindle. If Swindle's involved, there's a swindle involved. Parts I - VI can be found in my journal: http://journals.democraticunderground.com/CorpGovActivist

[radfringe]

1. congrats on making FAUX news...

if they are carrying the story -- how far behind can other MSM outlets be?

Let us know when you get an interview on Keith's show!!!

and seriously - if you are ever in the Scranton/Wilkes-Barre area of PA - call me - we'll do lunch or supper ;)

[CorpGovActivist]

2. I Can't Believe They Didn't Think...

... the Feds and the MSM would be on top of this in a flash, given the whistleblowers who are out there now.

This is like the Nixon-Ford Retread Amateur Hour.

- Dave

P.S. Faux is way behind the curve on this one. Real journalists have the inside track.

[Buttercup McToots]

3. Good Mornin`

Checkin` in fer the news
in betweenist soccer games and basketball games...
How is everyone?:)
What will taeday bring us...

[CorpGovActivist]

5. The Day Is Long...

... who knows?

; )

Playin' those games? Watchin'? Which teams?

I like that Beckham fella.

Ever watch Aussie Rules Football?!? I'm hooked! (Though I confess, it's as much for the sportscasters, as the *confusing* play.)

"Oh, rugger! That was a right diggeridoo! Check, trollop!"

If you're not paying careful attention, it's not immediately apparent whether that was:

* a good thing

* a bad thing

* a very painful thing

* a very funny thing, even by Aussie standards

* a heartbreak for the hometeam

* a possibility I haven't listed here OR

* some combination - or even all - of the above, rolled into one

Now there're two Celtic Diaspora groups that got it right, them Aussies and Kiwis!

; )

- Dave

[Buttercup McToots]

7. Aye

Mr McToots was born wit a soccer ball in one hand and a guitar
in the other. At one point many years ago, he palyed fer the Raith Rovers...
He had the wee boys playing soccer as soon as they could walk...

[CorpGovActivist]

9. Magnificent!

If he hasn't seen one, he has to find Aussie Rules Football on the tube.

It'll have you wanting to pack up and move Down Under: elements of soccer, rugby, American football, basketball, hockey, street hockey, and the kitchen sink thrown in for good measure.

http://en.wikipedia.org/wiki/Australian_Football_League

- Dave

P.S. How old are the wee ones?

[Buttercup McToots]

11. 8 & 10

I love em so...:)

[CorpGovActivist]

13. Wait 3 Years...

... then get back to us!

LOL.

; )

- Dave

[Buttercup McToots]

12. David

I want an autographed copy of yer book, also...k?

[CorpGovActivist]

14. Of Course!!!

You betcha!

: )

- Dave

[IdesOfOctober]

15. Just make sure he signs it in...

... English. Those crazy Pentecostals are wont to "speak in tongues," ye know!

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=364&topic_id=2561309&mesg_id=2561309

Besides officially recognized languages, David speaks a few dialects unknown to (or forgotten by) DNC elitists:

* Appalachian twang (David on the phone to his family in college had his friends stifling giggles)

* Union shop talk

* Evangelical-to-secular humanist

So besides all those foreign languages he's studied formally, he has a few mother's tongues, too. So be sure to specify English for the inscription.

Ides

[blm]

4. Please tell me you're talking to Robert Parry. Jonathan Landay.

.

[CorpGovActivist]

6. If You Have Journalists You Think Would Treat This...

... with the in-depth analysis it deserves, please - by all means - make suggestions.

- Dave

[blm]

8. Parry is close with Winer, IIRC.

.

[CorpGovActivist]

10. Good to Know...

... thanks for the tip.

: )

- Dave

[Blackhatjack]

34. Yep, They did not learn a thing from Nixon ....

... and taking Faux News down a few more notches is a 'national service' in the effort to combat WH coordinated propaganda.

[PerfectSage]

16. Halliburton Sells Bangladesh Assets To Singapore Company

Dave I over looked this news from Oct 30th.
Cui bono? If HAL is a house of cards ready to collapse into bankruptcy... ...insiders selling good assets at firesale prices to other corporations they control?



02:19 EST Monday, October 30, 2006

SINGAPORE -(Dow Jones)- HBR Energy, a unit of Halliburton Co. (HAL) operating in Bangladesh, has signed an agreement to sell its oil and gas assets in the South Asian nation to a privately held Singapore-based company, the U.S. oil field services provider said in a statement Friday.

The terms and sale price of the deal weren't disclosed.

Officials at Houston-based Halliburton weren't immediately available to comment.

Once the sale is concluded, HBR would have divested itself of the 25% interest in Bangladesh's Sangu gas field in the Bay of Bengal.

The assets comprise six wells producing 125 million cubic feet of natural gas a day, a four-pile platform, an 18-kilometer gas pipeline and an onshore processing plant.

These assets are currently being operated by a unit of the U.K.'s Cairn Energy PLC (CNE.LN).

It isn't immediately clear whether Cairn's unit will continue to operate the assets.

A clearer picture will emerge only next week, a Cairn official in Bangladesh said, without elaborating.

-By Gomati Jagadeesan, Dow Jones Newswires; 65-6415-4063; gomati.jagadeesan@ dowjones.com

-Edited by Ryan Woo


(END) Dow Jones Newswires
10-30-06 0159ET
Copyright (c) 2006 Dow Jones & Company, Inc.

[CorpGovActivist]

17. Halliburton Is Not Trying to Spin off KBR...

... for nothing, you know: http://www.sec.gov/cgi-bin/browse-edgar?company=kbr&CIK=&filenum=&State=&SIC=&owner=include&action=getcompany

Halliburton is hurting - "big time," some might say.

- Dave

[bleever]

18. Does Dresser go with KBR?

Spin it off, crash it, and let asbestos victims claims and expenses fall to the Feds, states, and county hospitals to absorb?

[CorpGovActivist]

19. I Have Called It the KBR Texas Two-Step

http://www.sec.gov/cgi-bin/browse-edgar?company=smith+david+allen&CIK=&filenum=&State=&SIC=&owner=include&action=getcompany

Start from the bottom, work your way up.

The second filing in the sequence is: http://www.sec.gov/Archives/edgar/data/1269476/000126947606000005/0001269476-06-000005-index.htm

- Dave

[bleever]

28. Bottoms up.

Okay. I did the reading.

I was right about two things. First, Dresser Industries: I watched with great suspicion as Defense Secretary Cheney pushed privatization of military logistics. Then he became head of the leading logistics firm in the defense arena. Then in the 2004 vice-presidential debate, Edwards gibed him about how Cheney had done very well in the private sector, and Cheney retorted that the federal government had had nothing to do with that. By that time, the writing on the wall was so big that only those standing far enough back could read it.

And in fact, Dresser was a catalyst for your pursuit of justice.

Second thing I was right about: you write splendidly, and my opinion of your command of language was increased significantly by reading through the filings. Some of my favorite sections (in addition to lines like "flightless avian flu") included these:



"But frankly, I fear that the DOJ headquarters has been turned into the CYA branch of Vinson & Elkins' worldwide operations."


"My generation can sniff out bogus brand building like BS bloodhounds, and there's a funny smell coming from Mr. Snow's podium these days. Maybe it's just the temporary press quarters, but I don't think so. If you think of the two major parties as competing brands, Mr. Snow may wish to rethink his approach to building the brand he is paid to endorse, and lay off the infomercial shtick in favor of some facts. My generation can sniff out a cost-cutting recipe change in a favorite food product, and we can sniff out a principles-cutting recipe change in conservatism, too."


Smith reminds Senators Warner and Allen that George Washington said: "All obstructions to the execution of the Laws, all combinations and associations, under whatever plausible character, with the real design to direct, control, counteract, or awe the regular deliberation and action of the constituted authorities, are destructive of this fundamental principle, and of fatal tendency. They serve to organize faction, to give it an artificial and extraordinary force; to put, in the place of the delegated will of the nation, the will of a party, often a small but artful and enterprising minority of the community; and, according to the alternate triumphs of different parties, to make the public administration the mirror of the ill-concerted and incongruous projects of faction, rather than the organ of consistent and wholesome plans digested by common counsels, and modified by mutual interests. However combinations or associations of the above description may now and then answer popular ends, they are likely, in the course of time and things, to become potent engines, by which cunning, ambitious, and unprincipled men will be enabled to subvert the power of the people, and to usurp for themselves the reins of government; destroying afterwards the very engines, which have lifted them to unjust dominion. Towards the preservation of your government, and the permanency of your present happy state, it is requisite, not only that you steadily discountenance irregular oppositions to its acknowledged authority, but also that you resist with care the spirit of innovation upon its principles, however specious the pretexts."



Of course, as I'm sure you've heard, all this (to a Democrat gasping to breathe the fresh air of an unhooded democracy) seems to be too good to be true. As do you.

But really, all that has happened in the last six years seems too bad to be true, so it doesn't really strain credulity all that much.

:)

[CorpGovActivist]

29. Newton's Third Law of Politics: For Every Action...

... there is an equal and opposite reaction."

Many of our Founders wrote that the system they created was designed to channel these competing forces to the common good.

When the likes of BushCo. emerges, it shouldn't surprise anyone that forces will coalesce to oppose them.
**************************************
"Okay. I did the reading."

You're a glutton for punishment!

"I was right about two things. First, Dresser Industries: I watched with great suspicion as Defense Secretary Cheney pushed privatization of military logistics. Then he became head of the leading logistics firm in the defense arena. Then in the 2004 vice-presidential debate, Edwards gibed him about how Cheney had done very well in the private sector, and Cheney retorted that the federal government had had nothing to do with that. By that time, the writing on the wall was so big that only those standing far enough back could read it.

And in fact, Dresser was a catalyst for your pursuit of justice."

Others who were singing from the "privatization hymnal" are equally culpable here. More on that to come, with indictments to follow, methinks.

"Second thing I was right about: you write splendidly, and my opinion of your command of language was increased significantly by reading through the filings. Some of my favorite sections (in addition to lines like 'flightless avian flu') included these:"

I'm delighted that you found the writing entertaining AND informative. I've heard similar comments from investigators.

'But frankly, I fear that the DOJ headquarters has been turned into the CYA branch of Vinson & Elkins' worldwide operations.'

Alberto Gonzales is unfit, in my view, to have anything at all to do with these investigations, given his ties to Vinson & Elkins and other key aspects; he should resign immediately after the elections, in my view: http://en.wikipedia.org/wiki/Alberto_Gonzales

'My generation can sniff out bogus brand building like BS bloodhounds, and there's a funny smell coming from Mr. Snow's podium these days. Maybe it's just the temporary press quarters, but I don't think so. If you think of the two major parties as competing brands, Mr. Snow may wish to rethink his approach to building the brand he is paid to endorse, and lay off the infomercial shtick in favor of some facts. My generation can sniff out a cost-cutting recipe change in a favorite food product, and we can sniff out a principles-cutting recipe change in conservatism, too.'

Hey, Tony Snow isn't half as slick as they seem to think he is.


"Smith reminds Senators Warner and Allen that George Washington said: 'All obstructions to the execution of the Laws, all combinations and associations, under whatever plausible character, with the real design to direct, control, counteract, or awe the regular deliberation and action of the constituted authorities, are destructive of this fundamental principle, and of fatal tendency. They serve to organize faction, to give it an artificial and extraordinary force; to put, in the place of the delegated will of the nation, the will of a party, often a small but artful and enterprising minority of the community; and, according to the alternate triumphs of different parties, to make the public administration the mirror of the ill-concerted and incongruous projects of faction, rather than the organ of consistent and wholesome plans digested by common counsels, and modified by mutual interests. However combinations or associations of the above description may now and then answer popular ends, they are likely, in the course of time and things, to become potent engines, by which cunning, ambitious, and unprincipled men will be enabled to subvert the power of the people, and to usurp for themselves the reins of government; destroying afterwards the very engines, which have lifted them to unjust dominion. Towards the preservation of your government, and the permanency of your present happy state, it is requisite, not only that you steadily discountenance irregular oppositions to its acknowledged authority, but also that you resist with care the spirit of innovation upon its principles, however specious the pretexts'."

How can you go wrong quoting GW in favor of your position? LOL.

"Of course, as I'm sure you've heard, all this (to a Democrat gasping to breathe the fresh air of an unhooded democracy) seems to be too good to be true. As do you."

I refer you to the Third Law, above.

"But really, all that has happened in the last six years seems too bad to be true, so it doesn't really strain credulity all that much."

The truth, as they say, is quite often stranger than fiction.

Thanks for your kind words.

- Dave

[CorpGovActivist]

20. See Halliburton's Self-Identified "Risk Factors"...

... in its twin Halloween filings:

Parent company quarterly report, including exhibits: http://www.sec.gov/Archives/edgar/data/45012/000004501206000348/0000045012-06-000348-index.htm

Proposed KBR spinoff (latest version), including exhibits: http://www.sec.gov/Archives/edgar/data/1357615/000119312506218385/0001193125-06-218385-index.htm

Search on the term "risk factors," and you'll see.

- Dave

[Subdivisions]

21. SNAP!!!

I'm so ready for the shoe to drop!

-snip-

The SEC and DOJ investigations include an examination of whether TSKJ’s engagements of Tri-Star Investments as an agent and a Japanese trading company as a subcontractor to provide services to TSKJ were utilized to make improper payments to Nigerian government officials. In connection with the Bonny Island project, TSKJ entered into a series of agency agreements, including with Tri-Star Investments, of which Jeffrey Tesler is a principal, commencing in 1995 and a series of subcontracts with a Japanese trading company commencing in 1996. We understand that a French magistrate has officially placed Mr. Tesler under investigation for corruption of a foreign public official. In Nigeria, a legislative committee of the National Assembly and the Economic and Financial Crimes Commission, which is organized as part of the executive branch of the government, are also investigating these matters. Our representatives have met with the French magistrate and Nigerian officials. In October 2004, representatives of TSKJ voluntarily testified before the Nigerian legislative committee. We are also aware that the Serious Frauds Office in the United Kingdom is conducting an investigation relating to the activities of TSKJ.

-snip-

[CorpGovActivist]

22. Interesting Thing about Living So Close to Embassy Row...

... it's very easy to get to "other countries' jurisdiction," to turn over evidence and provide sworn testimony, pursuant to their legal code.

; )

http://en.wikipedia.org/wiki/Embassy_row

- Dave

[PerfectSage]

25. I don't see it Dave.

I searched "risk factors" and "risk factors,".

The only thing I "see" is that I hate legalese run on sentences with a passion. lol

[CorpGovActivist]

26. Here You Go...

Item 1(a). Risk Factors
Information related to risk factors is described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” under “Forward-Looking Information and Risk Factors.”

*********************

That begins on page 55 of the main filing for Halliburton's latest 10-Q: http://www.sec.gov/Archives/edgar/data/45012/000004501206000348/edsept200610q_final.htm

Best,

- Dave

[PerfectSage]

27. I think I read 30-35 & 55-61 allready

Was something supposed to jump out and smack me on the head? lol

Some stuff about the seperation agreement between HAL & KBR. Made me wonder if HAL could weasel out of paying the promised indemnities for the FCPA? lawsuits.

[CorpGovActivist]

30. Parsing the Halliburton/KBR Filings...

... is boring, but important work, for the Dems/patriotic GOPers on The Hill.

: )

- Dave

[PerfectSage]

31. HAL knows it's up legal shitscreek, so they're selling assets?

Does something in the risk factors explain why they sold the Bangladesh assets?

The only thing that makes sense is the fines, monetary penalties and disgorgements related to the FCPA investigation. ie They've become 100% certain they're up legal shits creek without a paddle? So they're selling assets.


The reason why I wonder if HAL is planning on reneging on a promise to pay KBR's FCPA fines is: See page 20,27-28,70-71 and 126-130 in the KBR prospectus.

Proposed KBR spinoff (latest version), including exhibits: http://www.sec.gov/Archives/edgar/data/1357615/00011931...

Reading this makes me suspicious.


Enforceability of Halliburton FCPA Indemnification. Under the indemnity with Halliburton with respect to FCPA Matters, our share of any liabilities for fines or other monetary penalties or direct monetary damages, including disgorgement, as a result of governmental claims or assessments relating to FCPA Matters would be funded by Halliburton and would not be borne by us or our public stockholders. Our indemnification from Halliburton for FCPA Matters may not be enforceable as a result of being against governmental policy. We believe that the proposed Halliburton indemnification does not contravene the terms of any statutes, rules, regulations, or policies on indemnity for securities law violations promulgated by the SEC or Congress, and we will vigorously defend the enforceability of the indemnification. However, the SEC, the DOJ and/or a court of competent jurisdiction may not agree that the indemnification from Halliburton is enforceable. Please read “Risk Factors—Risks Relating to Investigations—Our indemnification from Halliburton for FCPA Matters may not be enforceable as a result of being against governmental policy” for additional information.

[CorpGovActivist]

32. In Plain English

Halliburton has agreed to "indemnify" the spinoff entity, for certain contingent liabilities.

What they're saying is that a court may say - "nuh-uh, no dice, both entities are on the hook here" - which means that both canoes are up the creek without a paddle.

: )

- Dave

[Blackhatjack]

35. Selling Assets? Ans: Turning Them Liquid, Easier To Disappear....

Forensic accounting depends upon accurate record keeping as a basis for being able to determine where certain funds appeared from and to where they eventually ended up. It becomes much more difficult to locate funds that have been divided, combined with other legitimate funds(called commingling), renamed and recharacterized. It is a type of shell game.

THe problem with 'hard assets' like oil wells, equipment, etc. is they are notoriously 'stationary' in nature, and much more difficult to hide. So if a judgment is returned against your company, and your company owns an oil well sitting off the coast of Bangladesh, the holder of that judgment may just execute on the oil well to satisfy the judgment.

So if you anticipate a judgment or fine will be entered against you in the near future, you might want to 'liquidate' those hard assets in a 'fire sale', take the cash and attempt to secret it in the shell game deception. Liquid funds bouncing around the international financial system in multiple combinations, certainly make the task of finding them much, much harder.

[IdesOfOctober]

37. Forensic accounting...

... too heavily reliant upon: http://en.wikipedia.org/wiki/Sigint ???

I know someone who has excelled at developing, and places like FinCen are getting much better at that aspect, too: http://en.wikipedia.org/wiki/Humint

http://www.fincen.gov/

Ides

[DemReadingDU]

23. a quiet day, so far

[IdesOfOctober]

24. Some Dems are leafleting districts with the Halliburton info...

... in key districts, this weekend: http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=364&topic_id=2575599&mesg_id=2575599

Ides

P.S. Point of sell printing. Make one leaflet template, customize it for the district/state, print at local Kinkos or other outlet.

[Blackhatjack]

33. Some of These Are So Arrogant They Think They Are BulletProof

... and when you have had your way to do whatever you wanted for the last 6 years, it is understandable that they would try to concoct a safe exit thinking no one would challenge them.

[CorpGovActivist]

39. They Should Guess Again...

... no clean getaway in the Age of the Internet.

- Dave

[Buttercup McToots]

36. Good Mornin`

:)

[Buttercup McToots]

38. Good Mornin`

:)

[IdesOfOctober]

40. More on this to hit...

... by mid-week next week.

Ides