The Marvin Bush Web into NASA and off shore entities/Jeb Bush &

[Madsen Matters Note: The following articles were sent to me by Wayne Madsen. The italicized notes in between the articles are Madsen's. I guess you could say this is Madsen's first stab at a blog entry. :-) ]

Winston Partners

Winston Partners is an investment firm based in McLean, Virginia focused on alternative investments across two complementary business segments: hedge funds and private equity. Winston's hedge fund group specializes in managing fund-of-funds portfolios that focus exclusively on long/short equity hedge fund strategies. Winston's private equity group focuses on small-cap buyouts and growth capital with experience in a range of industries. Founded in 1993, by Marvin Bush and Scott Andrews, Winston has $800 million in assets under management, of which $683 million are in hedge funds and $117 million are in private equity.

 

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CounterPunch

December 5, 2002

Marvin Dips into the Security Pie
Another Fortunate Bush Brother

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 Patriot Act.

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."

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 company is 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 connected to George H.W. Bush.

As we used to say in Texas, son of a gun.

There is a crying need for oversight and accountability, but the need has yet to be met.

Margie Burns, a writer and teacher, lives in Cheverly, Maryland.
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FLIR Systems and Indigo Systems announce merger agreement

Portland, OR & Goleta, CA | 11 November 2003 -- FLIR Systems, Inc. and Indigo Systems Corporation recently announced that they have entered into a Definitive Agreement and Plan of Merger pursuant to which FLIR will acquire Indigo Systems.

Indigo security holders will receive cash consideration of approximately $165 million, and all outstanding Indigo stock options will be converted into options to purchase FLIR stock. The transaction is valued at approximately $190 million.

Indigo, founded in 1996, is a leading developer and supplier of a wide range of infrared imaging products, including cooled and uncooled infrared detectors, camera cores, and finished cameras. Estimated Indigo revenue for calendar year 2003 is approximately $55 million.

"We are extremely happy to announce a merger with Indigo," commented Earl Lewis, Chairman, President, and CEO of FLIR. "As we have publicly stated, one of our key business objectives has been to secure a low-cost, high-quality supply of infrared detectors to help us reduce costs and continue our leadership in the commercial infrared industry. Indigo provides this, and much more. In its brief history, Indigo has emerged as one of the leading centers of innovation in the infrared detector industry, with significant intellectual property and an outstanding reputation for designing the highest performance components in the industry. In addition, Indigo is an excellent manufacturer of infrared equipment in its own right in areas complementary to FLIR's existing markets. Indigo will help us lower costs, expand into new markets, and provide an excellent technology base on which we can capitalize for the future."

Tim Fitzgibbons, CEO of Indigo, commented, "FLIR is the ideal partner for Indigo. Our strengths, especially in component design and manufacturing, marry perfectly with FLIR's industry leading sales and marketing and systems integration capabilities. Together, we are positioned to offer our customers lower cost and higher performance infrared systems."

FLIR expects the transaction to be accretive to earnings during 2004. Completion of the transaction is subject to the approval of Indigo shareholders, review by regulatory authorities, and other customary conditions. It is expected to close in early 2004.

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http://www.sptimes.com/News/102900/Business/Influence_and_bailout.shtml

Water pumps: In 1988, the same year Jeb's father became president, Jeb formed a partnership with David Eller, Broward County's Republican fundraiser, to market irrigation and flood control pumps overseas. Bush went to Nigeria, where he pledged his father would increase aid to developing countries, according to Nigerian press reports. Nigeria received $74-million in loans from the federally backed Export-Import Bank of the United States to buy the pumps, giving Jeb a healthy commission. Twelve years later, Nigeria has yet to repay most of the loans.

(So why is Jeb really going to South Asia? To sell these pumps to pump the sea water out of towns and farms?)

Stratasec: Marvin was recruited to join the board of this secretive Virginia security company that serves international corporations and governments. The company is awash in ex-government security and military personnel. Among them: Barry McDaniel, who served during the Reagan years as deputy director of readiness for the U.S. Army Materiel Command; and retired U.S. Air Force General James A. Abrahamson, who served as director of President Reagan's "Star Wars" Strategic Defense Initiative.

The company touts such major customers as Dulles airport near Washington, as well as Los Alamos National Laboratories (where former scientist Wen Ho Lee pleaded guilty to improperly downloading nuclear weapons design secrets).

KuwAm Corp.: The investment company, with roots in Kuwait (the country "liberated" by President Bush's Gulf War), is a large backer of Stratasec. Stratasec chief executive Wirt Walker (cousin) also is a managing director of KuwAm. And KuwAm chairman Mishal Yousef Saud Al Sabah also sits on Stratasec's board.

Interlink: Neil Bush now runs Interlink Management Corp., a Houston business based in the same building as his father's office. Interlink invests in small companies such as Pennsylvania-based Lithium Technology (rechargeable batteries) and represents Universal Display Corp. (flat panel displays) in Asia. Interlink's executives included "Bush Pioneers": fundraisers who have raised at least $100,000 for Dubya's campaign.

Note: Flat panel displays? Like the ones used for touch screen voting by any chance? Looks like it:

 

Universal Display Corporation (NASDAQ: PANL)

375 Phillips Blvd.
Ewing, NJ 08618 (Map)

Phone: 609-671-0980
Fax: 609-671-0995

http://www.universaldisplay.com

Universal Display is putting organic technology on display. The company, through sponsored research agreements with Princeton University and the University of Southern California, is developing organic light-emitting diodes (OLEDs) for flat-panel displays and other applications. Its OLED technologies use organic semiconductor materials to overcome limitations in liquid crystal displays, such as poor image and color quality. Universal Display plans to license its technology to makers of televisions, computer screens, and consumer electronics devices. Scott Seligsohn and Lori Rubenstein, son and daughter of founder and CEO Sherwin Seligsohn, together own about 30% of the company.