To: Campaign Managers

From: Mitch Bainwol

Re: Democrats and Corporate Responsibility

As you know, the Democrats have adopted a strategy to make corporate irresponsibility a political rather than a criminal issue. They believe they can convince Americans that because Republicans have received campaign contributions from certain corporations, Republicans are responsible for the criminal activities of people within those corporations.

Far, far worse than that, however, the Democrats have turned the economy of the United States into their personal political playing field. With people like Congressman Gephardt in the lead, they are doing everything possible to drive down the economy in a desperate attempt to win elections in November.

What they are doing is no game. What they are doing is very dangerous. The national Democrats are willing to jeopardize the retirement funds, college accounts, and lifelong investments of millions of Americans just so they might be able to gain more political power. We have even had one Democratic candidate go so far as to publicly recommend against investing in the stock market. I have never before witnessed a candidate for the United States Senate telling people to not invest in America’s future.

We must counter this Democratic campaign against America’s economy. They have chosen to conduct this campaign and there is nothing we can do about their choice. But we can control our own message, which is one of great confidence in the underlying strength of the American economy.

In addition, rather than trying to create political issues from criminal ones, we believe it’s more important to fix problems. We will continue to do so. Already we are seeing corporate criminals go to jail. More will follow. A corporate responsibility bill from Congress is a done deal. Good things are happening. We are getting things done.

Still, we have to deal with the repercussions of what the Democrats are trying to do. It’s incumbent upon us to stay our own positive course – and hope that the Democrats will soon follow. But there is absolutely no indication they will do that. In fact, what they desperately want to do is blame all Republicans for the economic troubles. They do this by pointing to relationships Republicans may have had with various implicated corporations.

We’ve prepared the following information for you to use if they continue to follow their national game plan. We think you will not have to use it – for the most part people see through what the Democrats are trying to do. But if necessary, you will have this information to show that Democrats have plenty of problems in their own house (or Senate...) – without attempting to create them for the American economy.

Recently Failed Corporations And Corporations With Questionable Accounting Practices:

The Democratic Connection

Larry Noble, The Executive Director Of The Center For Responsive Politics—A Non-Partisan Campaign Finance Watchdog Group—Believes That Democrats Are Hoping No One Will Look At Corporate Contributions To Their Party. "The reality is, the Democrats are no longer in the clear when they say that ‘the Republicans are the party of big business.’ This is not a black-and-white issue for Democrats. They know it, too. This is why they’re trying to keep public attention focused on Bush’s personal business dealings - so that people won’t look at the corporate donations to the Democratic Party." (Dick Polman, "Democrats Share The Blame For Corporate Chicanery," The Philadelphia Inquirer, July 21, 2002) (emphasis added)

_______________________________________________________________

CBS News’ Elizabeth Fulk Argues That The Democrats Should Not "Get Too Giddy About The Corporate Corruption Scandal" Because The Party Has "Its Own Corporate Cross To Bear." "Corporate irresponsibility has become the Democratic Party’s main line of attack this week. Democratic honcho Howard Wolfson opened a can of worms in a meeting with members of the press when he said that corporate accountability could be a winning issue for Democrats across the nation. . . . But while the Democrats have made a major effort to tie the White House and the GOP to the corporate scandals, the party pining to recapture control of Congress has its own corporate cross to bear in fallen telecommunications giant Global Crossing." (Elizabeth Fulk, "It’s Not Just The Republicans," http://www.cbsnews.com/stories/2002/07/12/politics/main515049.shtml, July 12, 2002) (emphasis added)

_______________________________________________________________

Unfortunately For Democratic Operatives, Global Crossing Is Just One Of Many "Irresponsible" Corporations Identified By Independent Observers, Democratic Analysts And Media Outlets That Is Inextricably Linked To The Democratic Party. (See Appendix For List Of Companies) Millions Of Dollars Of Campaign Contributions To Democratic Politicians, Huge Soft Money Donations To Party Committees And Media Documented Contacts Between High Level Democratic Officials And Corporate Representatives Are Just A Few Of The Elements Of The Close Association Between The Democratic Party And These Corporations.

Consider:

 

Since 1991, The Corporations Under Scrutiny, Their Employees And Other Major Contributors Linked To Insider Stock Trades Have Donated Over $21 Million To The Democratic Party And Its Candidates.

Hollings has even closer ties to Global Crossing and MCI WorldCom. Hollings has collected $16,500 from Global Crossing and its employees, and over $30,000 from MCI WorldCom.

During the 2000 Democratic Convention in Los Angeles, Enron hosted an event at a Santa Monica hotel to honor Senator Bingaman. The Associated Press reported that Enron held the party because "Bingaman would ascend to the chairmanship if his party recaptures the majority" and because Bingaman "backs Enron’s efforts to deregulate the electric industry. ‘We want to make sure Mr. Bingaman knows what our position is, and I think he supports that position too,’ Enron spokesman Mark Palmer said." (Jonathan D. Salant, "Companies Prepare For A Democratic Takeover," The Associated Press, August 14, 2000) (emphasis added)

 

Contributions From Corporations And Donors Under Scrutiny For Their Business Practices

To Democratic Senators And Their Affiliated Committees: 1991-Present

Democratic

Individual

PAC/Soft

Overall

Rank

Senator

Donations

Money

Total

1

Daschle, Thomas A (D-S.D.)

$ 47,000

$ 191,750

$ 238,750

2

Kennedy, Edward M (D-Mass.)

$ 106,550

$ 21,000

$ 127,550

3

Dodd, Christopher J (D-Conn.)

$ 46,800

$ 76,693

$ 123,493

4

Torricelli, Robert G (D-N.J.)

$ 69,350

$ 54,000

$ 123,350

5

Schumer, Charles E (D-N.Y.)

$ 89,750

$ 31,607

$ 121,357

6

Baucus, Max S (D-Mont.)

$ 34,750

$ 81,500

$ 116,250

7

Hollings, Ernest F (D-S.C.)

$ 42,926

$ 59,500

$ 102,426

8

Cantwell, Maria (D-Wash.)

$ 94,750

$ 7,375

$ 102,125

9

Lieberman, Joseph I (D-Conn.)

$ 37,250

$ 59,500

$ 96,750

10

Murray, Patty (D-Wash.)

$ 49,604

$ 42,126

$ 91,730

Contributions From Corporations And Donors Under Scrutiny For Their Business Practices

To Democratic Senators And Their Affiliated Committees: 1991-Present (cont.)

Democratic

Individual

PAC/Soft

Overall

Rank

Senator

Donations

Money

Total

11

Feinstein, Dianne (D-Calif.)

$ 35,850

$ 42,250

$ 78,100

12

Wyden, Ron (D-Ore.)

$ 24,690

$ 50,750

$ 75,440

13

Kerry, John F (D-Mass.)

$ 63,100

$ 4,010

$ 67,110

14

Breaux, John B (D-La.)

$ 15,848

$ 50,600

$ 66,448

15

Clinton, Hillary Rodham (D-N.Y.)

$ 52,965

$ 12,000

$ 64,965

16

Dorgan, Byron L (D-N.D.)

$ 10,000

$ 50,500

$ 60,500

17

Harkin, Tom (D-Iowa)

$ 9,650

$ 50,500

$ 60,150

18

Bingaman, Jeff (D-N.M.)

$ 11,998

$ 47,874

$ 59,872

19

Durbin, Richard J (D-Ill.)

$ 19,065

$ 38,500

$ 57,565

20

Landrieu, Mary L (D-La.)

$ 22,500

$ 33,896

$ 56,396

21

Conrad, Kent (D-N.D.)

$ 11,750

$ 43,650

$ 55,400

22

Bayh, Evan (D-Ind.)

$ 21,666

$ 33,250

$ 54,916

23

Reid, Harry M (D-Nev.)

$ 11,750

$ 40,000

$ 51,750

24

Cleland, Max (D-Ga.)

$ 13,042

$ 35,800

$ 48,842

25

Stabenow, Debbie (D-Mich.)

$ 22,150

$ 21,500

$ 43,650

26

Mikulski, Barbara A (D-Md.)

$ 3,750

$ 36,500

$ 40,250

27

Graham, Bob (D-Fla.)

$ 15,500

$ 24,520

$ 40,020

28

Levin, Carl (D-Mich.)

$ 10,950

$ 27,750

$ 38,700

29

Reed, Jack (D-R.I.)

$ 4,075

$ 30,543

$ 34,618

30

Lincoln, Blanche Lambert (D-Ark.)

$ 3,000

$ 31,500

$ 34,500

31

Boxer, Barbara (D-Calif.)

$ 17,450

$ 16,500

$ 33,950

32

Rockefeller, John D IV (D-W.Va.)

$ 9,500

$ 21,000

$ 30,500

33

Leahy, Patrick J (D-Vt.)

$ 29,400

$ 1,000

$ 30,400

34

Johnson, Tim (D-S.D.)

$ 9,500

$ 20,256

$ 29,756

35

Nelson, Ben (D-Neb.)

$ 7,000

$ 22,500

$ 29,500

36

Nelson, Bill (D-Fla.)

$ 11,500

$ 13,299

$ 24,799

37

Inouye, Daniel K (D-Hawaii)

$ 7,000

$ 15,700

$ 22,700

38

Sarbanes, Paul S (D-Md.)

$ 6,250

$ 11,300

$ 17,550

39

Carnahan, Jean A (D-Mo.)

$ 7,300

$ 7,500

$ 14,800

40

Carper, Thomas (D-Del.)

$ 10,500

$ 2,500

$ 13,000

41

Biden, Joseph R Jr (D-Del.)

$ 10,500

$ -

$ 10,500

42

Byrd, Robert C (D-W.Va.)

$ 500

$ 9,500

$ 10,000

43

Corzine, Jon S (D-N.J.)

$ 6,625

$ 1,000

$ 7,625

44

Miller, Zell B (D-Ga.)

$ 1,000

$ 6,500

$ 7,500

45

Feingold, Russell D (D-Wis.)

$ 2,200

$ 5,000

$ 7,200

46

Wellstone, Paul D (D-Minn.)

$ 6,750

$ -

$ 6,750

47

Akaka, Daniel (D-Hawaii)

$ -

$ 3,700

$ 3,700

48

Edwards, John R (D-N.C.)

$ 3,000

$ -

$ 3,000

49

Kohl, Herb (D-Wis.)

$ 1,250

$ -

$ 1,250

Total

 

$ 1,149,254

$ 1,488,199

$ 2,637,453

Includes PAC contributions, donations from company employees and their immediate family members not otherwise employed outside the home.

 

Media Organizations And Public Interest Groups Have Noted That Both Parties Have Been Large Recipients Of Campaign Contributions From Corporate America.

The Democrats’ strategy is clever, but for one fact: They are just as cozy with company chieftains. Not only did many of the corporate abuses now becoming public begin while the Democrats controlled the White House and key regulatory agencies, but Democrats are nearly as dependent on business donations as the GOP." (Editorial, "As Business Scandals Mount, Both Parties Share Blame," USA Today, July 8, 2002) (emphasis added)

 

Democrats Appear To Have Close Connections With The Companies Under Investigation. A More In-Depth Examination Shows That Democratic Candidates And Officials Are Linked To These Firms Both Professionally And Personally. These Five Case Studies Show The Multifaceted Relationship Between The Democrats And The Embattled Corporations And Donors.

 

CASE STUDY #1: GARY WINNICK & GLOBAL CROSSING/PACIFIC CAPITAL

In 1997, Gary Winnick, A Former Junk Bond Salesman Who Worked Closely With Convicted Felon Michael Milken, Founded The Telecommunications Firm Global Crossing Ltd. Winnick Is Also The Founder, Chairman And Chief Executive Officer Of Pacific Capital Group, A Merchant Bank That Is A Principal Investor In Such Fields As Telecommunications, Media, Real Estate, Financial Services, Health Care, And Biotechnology.

Winnick’s Firms—Pacific Capital And Global Crossing—Have Deep Roots With Today’s Democratic Establishment. For Over A Decade, Gary Winnick, The Winnick Family And His Employees At Pacific Capital And Global Crossing Have Filled The Democratic Party Coffers With Millions Of Dollars In Political Contributions. Now That Global Crossing Has Failed, Winnick’s Political Connections, Business Practices And Flamboyant Lifestyle Have Come Under Greater Scrutiny.

Stock Options In Global Crossing Ltd. Made Hundreds Of Millions Of Dollars For Gary Winnick And Other Global Crossing Executives. In Fact, Members Of The Global Crossing Management Earned More In Insider Sales Than All Of Enron’s Executives Combined.

Gary Winnick’s Washington D.C. Connections Strengthened Dramatically When He Retained Current Democratic National Committee Chair Terry McAuliffe As A Consultant In 1997.

Since January 1, 1991, Pacific Capital, Global Crossing And The Winnick Family Have Contributed Over $2.3 Million to Democratic Committees And Democratic Candidates.

Top Recipients Of Contributions From Winnick-Related Entities:

Democratic Senators & Their Affiliated Committees

Rank

Incumbent

Total

1

Kennedy, Edward M (D-Mass.)

$ 62,500

2

Daschle, Thomas A (D-S.D.)

$ 42,000

3

Kerry, John F (D-Mass.)

$ 21,500

4

Feinstein, Dianne (D-Calif.)

$ 20,000

5

Hollings, Ernest F (D-S.C.)

$ 16,500

6

Lieberman, Joseph I (D-Conn.)

$ 13,000

7

Landrieu, Mary L (D-La.)

$ 11,000

8

Cantwell, Maria (D-Wash.)

$ 10,250

9

Nelson, Bill (D-Fla.)

$ 10,000

10

Schumer, Charles E (D-N.Y.)

$ 10,000

11

Cleland, Max (D-Ga.)

$ 8,000

12

Reid, Harry M (D-Nev.)

$ 8,000

13

Levin, Carl (D-Mich.)

$ 7,500

Top Recipients Of Contributions From Winnick-Related Entities:

Democratic Senators & Their Affiliated Committees (cont.)

Rank

Incumbent

Total

14

Conrad, Gaylord Kent (D-N.D.)

$ 7,000

15

Dodd, Christopher J (D-Conn.)

$ 7,000

16

Inouye, Daniel K (D-Hawaii)

$ 6,000

17

Rockefeller, John D IV (D-W.Va.)

$ 6,000

18

Clinton, Hillary Rodham (D-N.Y.)

$ 5,750

19

Breaux, John B (D-La.)

$ 5,500

20

Reed, Jack (D-R.I.)

$ 5,500

Top Recipients Of Contributions From Winnick-Related Entities:

2002 Democratic Senate Incumbents

Rank

Incumbent

Total

1

Kerry, John F (D-Mass.)

$ 21,500

2

Landrieu, Mary L (D-La.)

$ 11,000

3

Cleland, Max (D-Ga.)

$ 8,000

4

Levin, Carl (D-Mich.)

$ 7,500

5

Rockefeller, John D IV (D-W.Va.)

$ 6,000

6

Reed, Jack (D-R.I.)

$ 5,500

7

Harkin, Tom (D-Iowa)

$ 4,500

8

Baucus, Max S (D-Mont.)

$ 4,000

9

Torricelli, Robert G (D-N.J.)

$ 2,000

10

Durbin, Richard J (D-Ill.)

$ 1,000

Through McAuliffe’s Efforts And Hundreds Of Thousands Of Dollars In Campaign Contributions To The Democratic Party, Gary Winnick Remained Friendly With President Bill Clinton.

Global Crossing Also Developed Close Business Relationships With The Spouse Of A Powerful Democratic Senator, A Senior Advisor To Former Vice President Al Gore And A Current Senate Candidate.

While Gary Winnick And Others Became Multi-Millionaires By Selling Their Stock In Global Crossing, And As The Democratic Party Raised Millions Of Dollars In Campaign Contributions, Many Global Crossing Employees And Investors Lost Their Entire Life Savings.

Despite Laying Off Thousands Of His Employees And Seeing Many Of Them File For Bankruptcy, Gary Winnick Continues To Lead A Lavish Lifestyle.

Even Though There Is A Record Of Serious Improprieties By Global Crossing Executives, Massive Insider Trades And Displaced And Destitute Employees, Leading Democratic Senators Refuse To Call For An Investigation Into Global Crossing’s Business Practices.

 

CASE STUDY #2: LEO J. HINDERY JR.

A Former Global Crossing Executive And A Strong Supporter Of The Senate Democratic Caucus, Leo J. Hindery Jr. Has Been Linked By The Wall Street Journal To Highly Questionable, Undisclosed Stock Trades. The Trades, Which Netted Hindery Hundreds Of Thousands Of Dollars, Were Made At A Time When Global Crossing Barred Its Officers From Trading Company Shares.

Despite These Highly Charged Allegations Of Insider Trading, Democratic Leaders Still Solicit Hindery’s Advice And Democratic Candidates Continue To Raise Thousands Of Dollars From Hindery, His Family And His Associates. At Least One Senate Democratic Candidate May Have Even Traveled On Hindery’s Private Jet.

Recipients Of Contributions From The Hindery Family:

2002 Senate Candidates Only

Candidate

Status

Amount

Bowles, Erskine B (D-N.C.)

Challenger

$ 2,000

Carnahan, Jean A (D-Mo.)

Incumbent

$ 4,800

Cleland, Max (D-Ga.)

Incumbent

$ 3,000

Harkin, Tom (D-Iowa)

Incumbent

$ 2,000

Johnson, Tim (D-S.D.)

Incumbent

$ 2,000

Pryor, Mark Lunsford (D-Ark.)

Challenger

$ 3,000

Rockefeller, John D IV (D-W.Va.)

Incumbent

$ 1,000

Strickland, Thomas L (D-Colo.)

Challenger

$ 2,000

Torricelli, Robert G (D-N.J.)

Incumbent

$ 6,000

Wellstone, Paul David (D-Minn.)

Incumbent

$ 2,000

On November 26, 2001 Deborah Hindery Made A $900 "In-Kind" Contribution To Jean Carnahan For "Catering"—Suggesting That The Hinderys Hosted Senator Carnahan At Their Hillsborough, California Home.

On November 8, 2001 Leo Hindery Made A $1,000 "In-Kind" Contribution To Mark Pryor For "Catering"—Suggesting That The Hinderys Hosted A Fundraising Dinner For Mark Pryor At Their Hillsborough, California Home. In All, Hindery Bundled Approximately $17,500 For The Pryor Campaign.

On November 9, 2001, Three Employees Of The Yankees Entertainment And Sport (YES) Network—The Company Chaired By Leo Hindery—Also Donated To Mark Pryor.

On November 9, 2001, Douglas Luke, Who Made The Highly Questionable Global Crossing Stock Trades For Leo Hindery, Also Donated $1,000 To Mark Pryor.

 

CASE STUDY #3: IMCLONE SYSTEMS INC.

ImClone Systems Inc. Is A Biopharmaceutical Company That Works To Develop Biologic Medicines In The Area Of Oncology. In June 2002, ImClone’s Founder And Major Democratic Donor Dr. Samuel Waksal Was Arrested On Charges Of Insider-Trading. Waksal, ImClone And Its Employees Have Donated Over $200,000 To Democratic Candidates And Party Committees.

Democratic Senate Recipients Of Contributions From

Employees Of ImClone Systems Inc.

Candidate

Amount

Baucus, Max S (D-Mont.)

$ 1,000

Bayh, Evan (D-Ind.)

$ 2,000

Carper, Thomas (D-Del.)

$ 500

Clinton, Hillary Rodham (D-N.Y.)

$ 8,000

Daschle, Thomas A (D-S.D.)

$ 1,000

Dodd, Christopher J (D-Conn.)

$ 1,000

Johnson, Tim (D-S.D.)

$ 500

Kerry, John F (D-Mass.)

$ 5,000

Levin, Carl (D-Mich.)

$ 1,000

Schumer, Charles E (D-N.Y.)

$ 3,000

Total

$ 23,000

CASE STUDY #4: ENRON CORPORATION

On December 2, 2001 Enron Corporation Declared Bankruptcy—At The Time Enron Was The Biggest Company To Declare Bankruptcy In American History. While Many Democratic Officials And Media Outlets Have Linked Republicans To The Failed Energy Firm, For Many Years There Was A Close Relationship Between Enron, The Clinton Administration And Democratic Party Committees And Candidates.

Enron Officials Had Regular Seats On Clinton White House Trade Missions During Both Terms Of The Clinton/Gore Administration.

"In fact, Enron officials were so often part of Clinton’s international trade missions that the company felt compelled to issue a news release saying no one from Enron was involved when a plane crashed in Croatia in 1996, killing all aboard, including then-Commerce Secretary Ron Brown." (Jack Douglas Jr. and Jennifer Autrey, "How Enron Massaged The Political Process," Fort Worth Star-Telegram, January 27, 2002)

"Enron Corp. Confirms No Enron Executives On Board Commerce Secretary Ron Brown’s Missing Plane." (Enron Corporation, Press Release, April 3, 1996)

Example #1: Enron Seeks Help From The Clinton Administration To Build A Power Plant In Dabhol, India.

Example #2: Enron Presses The Clinton Administration To Support The Kyoto Protocol.

Example #3: Enron Presses The Clinton Administration To Support Electricity Deregulation In The U.S.

Example #4: The Clinton Administration Assists Enron In Securing An Agreement To Build A Pipeline In China.

In 1996, A Senior Enron Executive Attended One Of The Infamous Clinton White House Coffees; Shortly Thereafter, Enron Donated $100,000 To The Democratic National Committee.

Former Clinton Administration Officials Continued To Lobby For Enron While They Also Raised "Significant" Amounts Of Money For Democratic Senate Candidates.

On January 23, 2002 There Was A Major Fundraising Event For North Carolina Democrat Erskine Bowles In Washington, D.C. Among Those Sponsoring The Event Were Former Commerce Secretary Mickey Kantor—Connected To Enron Lobbyists—And Greg Simon—An Enron Lobbyist.

 

CASE STUDY #5: ARTHUR ANDERSEN LLP

Once One Of The Most Respected Accounting Firms In The World, Arthur Andersen LLP Was Indicted In March 2002 In Connection With Shredding Enron-Related Documents During A Securities And Exchange Commission Probe Into The Former Energy Giant. Arthur Andersen Was Also Charged Under A Federal Witness-Tampering Law That Makes It A Crime To "Corruptly Persuade" Others To Withhold Evidence From An Official Government Proceeding.

On June 15, 2002 The Wall Street Journal Reported That "A Federal Jury Convicted Arthur Andersen LLP Of A Single Felony Count Of Obstructing An Official Government Proceeding, Delivering A Verdict That Will Forever Stain The Legacy Of This Once-Revered American Institution. The Conviction, Decided Saturday On The Tenth Day Of Deliberations, Bars Andersen From Auditing The Financial Statements Of Companies Registered With The Securities And Exchange Commission." (Jonathan Weil And Alexei Barrionuevo, "Arthur Andersen Is Convicted On Obstruction-of-Justice Count," The Wall Street Journal, June 16, 2002)

Democratic Senate Recipients Of Contributions From

Arthur Andersen LLP And Its Employees: 1991-Present

Rank

Senator

Amount

1

Dodd, Christopher J (D-Conn.)

$ 54,793

2

Schumer, Charles E (D-N.Y.)

$ 39,834

3

Wyden, Ron (D-Ore.)

$ 32,440

4

Daschle, Thomas A (D-S.D.)

$ 29,000

5

Kennedy, Edward M (D-Mass.)

$ 22,750

6

Bayh, Evan (D-Ind.)

$ 22,250

7

Feinstein, Dianne (D-Calif.)

$ 20,450

8

Torricelli, Robert G (D-N.J.)

$ 19,000

9

Harkin, Tom (D-Iowa)

$ 18,400

10

Kerry, John F (D-Mass.)

$ 18,100

11

Lieberman, Joseph I (D-Conn.)

$ 17,750

12

Reid, Harry M (D-Nev.)

$ 17,500

13

Hollings, Ernest F (D-S.C.)

$ 15,460

14

Mikulski, Barbara A (D-Md.)

$ 14,750

15

Conrad, Kent (D-N.D.)

$ 14,250

 

APPENDIX

The donors included in this study were assembled by including corporations and contributors under scrutiny for their business practices. The following corporations were identified by House Minority Leader Gephardt’s 26-page report titled "Drive to Deregulate: GOP Congress Paved the Way for Enron & Other Corporate Misdeeds":

In addition, the following corporations were identified for their questionable business practices by the Center For Responsive Politics:

Finally, recent news reports have raised questions regarding the business practices of the following: