You dittohead Wrote:
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>
> Lol this is a Limbaugh talking point. You
> dittohead ;)
>
>
McAuliffe made a fantastic profit through an
> insider deal that allowed him to buy Global
> Crossing stock before it was offered to the
> public. Cuccinelli’s ad, without directly saying
> so, clearly links McAuliffe’s gain to the
> downfall of the company and the woes of its
> employees.
>
> There’s no evidence McAuliffe had a management
> role in Global Crossing. He was an investor who
> bought low and sold about half of his holdings at
> peak value. He held on to the rest of his shares
> until they were virtually worthless. All of the
> shares were publicly traded, so it’s far-fetched
> to suggest McAuliffe raided the company’s
> coffers.
>
> We rate the claim False.
>
>
http://www.politifact.com/virginia/statements/2013
> /sep/23/ken-cuccinelli/cuccinell-ad-says-mcauliffe
> -cashed-demise-global-c/
The only part that they rated is false is that he had some direct involvement in causing the fall of the company. The rest of the story is correct.
- He did profit as an insider from a relatively minor investment to the tune of many millions, the source of which was other investor's funds. Which is somewhat of a pattern for Terry (e.g., see also the union pension fund scam that he was involved in where he greatly profited for a trivial personal investment at the expense of others.)
- He gained the opportunity to invest as an insider due to his political connections.
- He did "coincidentally" choose the best possible time to dump most of his stock.
- He was "coincidentally" sitting in the same office as the Winnick and other principals of Global Crossing at the time.
- There should have been more of a pursuit of the case but that was squashed by those at higher political levels.
http://www.washingtonpost.com/blogs/fact-checker/wp/2013/09/09/cuccinellis-attack-on-mcauliffes-global-crossing-investment/
The Facts
The basic details of McAuliffe’s investment in now bankrupt Global Crossing are not in dispute: He was given an opportunity to invest in the fiber-optics telecommunications firms before it went public, which is the kind of insider deal not available to most investors. Obviously there is some risk involved in any stock purchase, but people who get shares before a company goes public almost always make good returns, because the offering price for public shareholders is going to be higher than the insider price.
McAuliffe got this opportunity after spending a year as a consultant for business executive Gary Winnick, who put together Global Crossing, according to news reports cited by the Cuccinelli campaign.
McAuliffe invested $100,000—of his own money, according to a spokesman. Various reports have pegged McAuliffe’s return as either $18 million or $8.1 million, citing McAuliffe as a source. McAuliffe once bragged to The New York Times in 1999 that the value of the shares had grown to as much as $18 million, but then in 2009 he documented to the Associated Press that his actual return was $8.1 million because he held onto some shares that eventually were nearly worthless.
The ad flashes a headline showing $18 million. Richard T. Cullen, communications director for Cuccinelli campaign, cites various news accounts for that number, though as we noted McAuliffe later downsized it.
Either way, $18 million or $8.1 million, it’s a fantastic return on McAuliffe’s $100,000 investment. And the ad accurately says, “Political insider and investor Terry McAuliffe cashed in, walking away with millions.”
But interspersed between these facts are interviews with workers at Global Crossing whose lives were ruined when Global Crossing collapsed, in part because their retirement plans were invested in the company stock.
But McAuliffe was only an investor, and had nothing to do with the management, or mismanagement, of the company. Winnick—who earned at least $700 million from his sales of Global Crossing stock—was never charged with any criminal wrong-doing; the SEC staff wanted to pursue civil charges over the company’s accounting practices but they were overruled by SEC commissioners.