Rudy: All Business
By Michael Weisskopf and Massimo Calabresi
Time
Not long after he stepped down as mayor of New York City, Rudy Giuliani received an intriguing offer. A group of officials from a Florida company called Seisint Inc. asked him to promote a powerful new database technology capable of tracking potential terrorists and other criminals. Their timing was perfect. Giuliani had just opened Giuliani Partners (GP), a consulting shop that planned to specialize in helping companies like Seisint grow. "Nobody knew us; everybody knew him," says Michael Brauser, a major shareholder who negotiated the December 2002 contract between GP and the Boca Raton-based firm. "It was an unbelievable fit."
For Giuliani's new company, it was a remarkably profitable fit too. GP pulled in more than $30 million for just one year's work on Seisint's behalf, company records show. Big paydays have not been unusual for GP, which in just five years has reaped tens of millions of dollars from clients at home and abroad, a business success story closely linked to Giuliani's fame as a hero of 9/11. That same legacy has propelled him to the top tier of Republican presidential candidates.
But now Giuliani the candidate is facing a growing number of questions about the clients, earnings and practices of Giuliani the businessman. Although much of his work has been for blue-chip American corporations, it has been widely reported that GP has also represented more controversial clients, including the maker of the prescription drug OxyContin and the government of Qatar. TIME has also learned that Bracewell & Giuliani, a Houston-based legal and lobbying firm he joined as a name partner in 2005, represents Saudi Aramco, the Saudi national oil company. Thus far, Giuliani has refused to divulge a client list or many details of his work for either GP or Bracewell & Giuliani, and he has maintained his ownership stake in both companies as he continues his run for the White House. Ed Rogers, White House political director under the first President Bush, says the Giuliani campaign has to do better at handling his business situation "to keep it from becoming a real issue and something that may drive votes."
The Seisint deal, details of which TIME pieced together from interviews and corporate documents, seemed like a good match for Giuliani's company. Seisint's founder, Hank Asher, was regarded as a database wizard who used supercomputers to store billions of pieces of information from public records, which, he claimed, were able to spit out the names of some of the 9/11 hijackers before they were publicly identified. The firm's potential seemed endless to GP, and it signed on for what Seisint saw as a heavily discounted fee of $2 million a year, plus a percentage of revenue from company sales to government and corporate buyers.
(Continued here.)
Time
Not long after he stepped down as mayor of New York City, Rudy Giuliani received an intriguing offer. A group of officials from a Florida company called Seisint Inc. asked him to promote a powerful new database technology capable of tracking potential terrorists and other criminals. Their timing was perfect. Giuliani had just opened Giuliani Partners (GP), a consulting shop that planned to specialize in helping companies like Seisint grow. "Nobody knew us; everybody knew him," says Michael Brauser, a major shareholder who negotiated the December 2002 contract between GP and the Boca Raton-based firm. "It was an unbelievable fit."
For Giuliani's new company, it was a remarkably profitable fit too. GP pulled in more than $30 million for just one year's work on Seisint's behalf, company records show. Big paydays have not been unusual for GP, which in just five years has reaped tens of millions of dollars from clients at home and abroad, a business success story closely linked to Giuliani's fame as a hero of 9/11. That same legacy has propelled him to the top tier of Republican presidential candidates.
But now Giuliani the candidate is facing a growing number of questions about the clients, earnings and practices of Giuliani the businessman. Although much of his work has been for blue-chip American corporations, it has been widely reported that GP has also represented more controversial clients, including the maker of the prescription drug OxyContin and the government of Qatar. TIME has also learned that Bracewell & Giuliani, a Houston-based legal and lobbying firm he joined as a name partner in 2005, represents Saudi Aramco, the Saudi national oil company. Thus far, Giuliani has refused to divulge a client list or many details of his work for either GP or Bracewell & Giuliani, and he has maintained his ownership stake in both companies as he continues his run for the White House. Ed Rogers, White House political director under the first President Bush, says the Giuliani campaign has to do better at handling his business situation "to keep it from becoming a real issue and something that may drive votes."
The Seisint deal, details of which TIME pieced together from interviews and corporate documents, seemed like a good match for Giuliani's company. Seisint's founder, Hank Asher, was regarded as a database wizard who used supercomputers to store billions of pieces of information from public records, which, he claimed, were able to spit out the names of some of the 9/11 hijackers before they were publicly identified. The firm's potential seemed endless to GP, and it signed on for what Seisint saw as a heavily discounted fee of $2 million a year, plus a percentage of revenue from company sales to government and corporate buyers.
(Continued here.)
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