Subject: [NEXTEL-1] Timmy Pays Giuliani $15,000,000.00 To Be The "FRONT MAN" On The "SCAM PLAN"

From: Marcelrf <[email-masked]>
Date: Sun, 22 Feb 2004 15:53:14 -0500

February 22, 2004

RUDY INC.
Timmy Pays Giuliani $15,000,000.00 To Be The "FRONT MAN" On The "SCAM PLAN"
By Selling Very Public Image, the Private Giuliani Prospers

By ERIC LIPTON
hen the manufacturer of the drug OxyContin — a top-selling prescription
painkiller that was proving lethal in a
ballooning black market — needed to tackle its growing legal and public
relations problems, it hired a former mayor of
New York best known for his formidable public safety credentials,
Rudolph W. Giuliani.

Only months later, the Department of Justice, the cabinet agency charged
with combating drug crimes and abuse, including traffic in OxyContin,
also turned to Mr. Giuliani, a former federal prosecutor, and the
consulting firm he had set up with a dozen of his aides.

The dual contracts only hint at Mr. Giuliani's remarkable success in
building a business empire since leaving City Hall in December 2001.

In its two years of existence, his firm, Giuliani Partners, has earned
tens of millions of dollars by assembling an extremely broad range of
clients, jumping almost immediately into the ranks of the nation's most
prestigious consulting firms, according to two industry guides.

A detailed examination of its business practices shows that the firm's
work for its base of 20 or so clients — with at least two on different
sides of the same issue — stretches well beyond providing advice on
policing and domestic security, the type of job that has produced the
most publicity for Giuliani Partners.

The firm has been hired to improve public confidence in a horse-racing
gambling operation. It has advised New York hospitals on buying bulk
supplies, helped expand a California-based business that sells
inexpensive wills, and set up an alliance with a large accounting firm
to fight computer hackers.

More recently the partnership moved into the world of venture capital,
working with Bear Stearns & Company to invest $300 million in
security-related businesses, with Giuliani Partners to eventually share
in the profits of businesses that succeed.
Taken together, the firm's deals, carried out chiefly by a handful of
former civil servants, have made the partnership one of the most novel
and lucrative ventures ever begun by an out-of-office American
politician, avoiding the familiar path of many ex-officials who join law
firms or become lobbyists.

The firm, which opened in January 2002 in affiliation with Ernst &
Young, the global accounting firm, is clearly and without apology driven
by the stature Mr. Giuliani gained in commanding the New York City
Police Department and in guiding the city after the World Trade Center
attack. It is sustained by the advice Mr. Giuliani and his partners
offer in appearances they make around the nation and the world, warning
audiences that more attacks are almost certainly on the way. Such
predictions, of course, benefit both the former mayor's firm and the
clients he has retained, many of them involved in selling terrorism
preparedness products.

"I'm not a piano player," Mr. Giuliani said, discussing his firm's
security work. "That isn't what I learned how to do. What I learned how
to do is law enforcement, security, reduction of crime, running
organizations."
Every step Mr. Giuliani takes, including appearances in California,
Florida, Pennsylvania and five other states over the past month,
elevates his profile as a businessman in advance of the return to
politics that he acknowledges is all but inevitable.
Through it all, Mr. Giuliani has moderated the stridency and
confrontational tactics he often employed as mayor, avoiding issues that
caused controversy in City Hall and staying with the building blocks of
his improved reputation.
Former Gov. Mario M. Cuomo, an occasional political ally of Mr.
Giuliani, said he was impressed, if somewhat surprised, by the mayor's
successful marriage of big business with high-profile politics.

"He is a better politician out of office, than in it," Mr. Cuomo said.

Most of the firm's clients benefit from the former mayor's reputation
and advice to sell their products in a straightforward way.  But the
firm's broad range of interests, like that of many enterprises headed by
once-powerful politicians, has at times produced some awkward
appearances.

Bear Stearns, for instance, benefited from tens of millions of dollars
in tax breaks offered by Mr. Giuliani when he was mayor and it was
threatening to leave the city. And Nextel Communications, the wireless
phone carrier based in Reston, Va., has offered the partnership
compensation worth at least $15 million, in part to help its pursuit of
an important reshuffling of the radio spectrum from the Federal
Communications Commission. At the same time, Mr. Giuliani and his staff
have also served as unpaid advisers to the F.C.C., spending more than a
year helping prepare a report about how local governments can best
communicate with the public during catastrophic events, an assignment
that was brokered by Nextel's chief regulatory counsel.
Nothing the former mayor has done appears to violate any formal conflict
of interest rules. Mr. Giuliani said he scrupulously avoids any conflict
in his sometimes overlapping roles, adding that he is not a registered
lobbyist.

"Everybody knows what we're doing, so there's nothing hidden," said Mr.
Giuliani, whose firm now has 58 employees. "We have nothing to do with
decision-making in either area."

The First Customer
A Drug Company Comes Under Federal Scrutiny

In January of 2002, less than a month after Mr. Giuliani left office,
Purdue Pharma found itself facing a host of legal, financial and public
relations problems surrounding the manufacture of OxyContin. The drug, a
time-released painkiller, was introduced in 1996, and sales grew from
$125 million in 1997 to $1.35 billion in 2001. OxyContin was an enormous
profit center for Purdue.  But with its success came crime waves in
certain parts of the country, including pharmacy break-ins and
robberies: word had spread that the time-release features could be wiped
out simply by crushing the tablet, turning it into a superpotent
narcotic.  Misuse of the drug had also been cited by government
authorities in more than 400 deaths.

The federal government was becoming concerned. Asa Hutchinson, then the
administrator of the Drug Enforcement Administration, told Congress that
Purdue's aggressive marketing and promotion had helped cause the
widespread abuse of OxyContin. By 2001, the drug agency advocated
allowing only specialized pain management doctors, instead of all
general practitioners, to prescribe the drug, and requiring that it be
distributed only through special centralized pharmacies, moves that
would have cut Purdue's sales. It also was investigating security and
management problems at Purdue's main manufacturing plant.

The company needed the political cover of an alliance with someone
considered an unimpeachable American hero , and Purdue officials later
made it clear why they became the first client of Mr. Giuliani's firm
weeks after he left City Hall.
"We had to switch over to using more political consultants," explained
Robin Hogen, a Purdue spokesman, in a speech he made to public relations
executives in March 2002, three months after Mr. Giuliani was hired, but
before the hiring was publicly disclosed. "We're about to announce next
week bringing on a sort of rock star in that area."
The goal, Purdue officials said later, was to limit new federal
enforcement or regulatory actions. "We believe that government officials
are more comfortable knowing that Giuliani is advising Purdue Pharma,"
said Purdue's chief lawyer, Howard R. Udell, in a statement advertising
Mr. Giuliani's services to other possible clients.

To Mr. Giuliani and his associates, the contract seemed a perfect
assignment.
"Purdue Pharma has hired some of the most experienced experts on drug
enforcement and drug monitoring in the country," Mr.  Giuliani said,
referring to his own law enforcement experience, as well as that of his
partner Bernard B. Kerik, the former police commissioner who once
specialized in drug enforcement cases at the Police Department.

Mr. Kerik was dispatched with other former Police Department aides to
evaluate security practices at Purdue's OxyContin manufacturing plant in
Totowa, N.J., where two Purdue employees were arrested in 2001 for
trying to steal thousands of pills.  Mr. Giuliani, meanwhile, began
organizing doctors, pharmacies, pharmaceutical companies and other
health care professionals into a group that his company called the Rx
Action Alliance, which would try to build a strategy to limit
prescription drug abuse.
The efforts of the former mayor and prosecutor on behalf of a
manufacturer that D.E.A. officials said had contributed to the spread of
OxyContin abuse help illustrate the unusual range of Giuliani Partners'
client base. Few outside the company are aware of the variety of clients
that Giuliani Partners has advised.

There is, for example, Leeds Weld Equity Partners, a investment firm
based in Manhattan specializing in companies that sell education
equipment and services, which Giuliani Partners is being paid to advise.
The former mayor also teamed up with We the People Forms and Service
Centers USA, a company based in California that is opening stores across
the country selling low-priced wills or divorce papers. And late last
year, Mr. Giuliani also announced a deal in which his firm would advise
nearly 100 hospitals in the New York region that want to save money by
buying surgical equipment and drugs in bulk.

For the most part, an examination of the firm's work shows that the
mission of Giuliani Partners is not to make calls to drum up government
business for a client, in the timeworn fashion of many former city and
national officials. "We are religious about not doing that," said
Michael D. Hess, who was the city government's top lawyer while Mr.
Giuliani was mayor and now is senior managing partner at the firm. "That
is something we turn down."

But in his various roles, Mr. Giuliani does not hesitate to work closely
with government officials abroad and at home. As a consultant, he
attended two meetings in 2002 to discuss OxyContin with Purdue
executives and Mr. Hutchinson, the D.E.A.  administrator at the time. As
a law enforcement icon who was one of the top three officials in the
Department of Justice, he also stood next to Mr. Hutchinson that same
year in Washington at a ribbon-cutting for a new Drug Enforcement Museum
exhibit, an event that included a luncheon where the former mayor helped
the agency's museum raise $25,000.
Approximately 10 months after Mr. Giuliani's firm began its work for
Purdue, it also won a $1.1 million contract from the Department of
Justice to look for ways to improve the effectiveness of the Organized
Crime Drug Enforcement Task Force, whose duties, in part, included
helping investigate OxyContin abuse and to whose director, Karen Tandy,
Purdue officials had appealed for help, a Justice Department official
said.

The outcome so far for Purdue has been positive. In September 2003, it
won its bid to hold off restrictions on the sale of OxyContin. No
government action has yet been taken against the company for lapses at
its New Jersey plant, which the company says is more secure because of
Giuliani Partners' involvement.

Purdue officials would not disclose how much Mr. Giuliani has been paid,
but they said they are pleased with the work his firm has done.

"Rudy Giuliani is a man of action," Mr. Hogen said in a recent
interview. "He does not do things to take a picture and move on.
He wants substance. He wants change. He wants to see impact. And that is
what he has done for us."
But critics have contended that the firm's work for parties on opposite
sides of a drug investigation appears to raise a conflict-of-interest
question.

"On the one hand he is representing a client with a problem before the
D.E.A., and on the other hand he has a contract with the Justice
Department that has him talking to agents at the D.E.A.," said Bill
Allison, a spokesman for the Center for Public Integrity, a nonprofit
group in Washington that monitors government ethics issues. "That sure
seems to be a conflict to me."
Mr. Giuliani said he sees no chance for a conflict in the multiple ways
he is involved in the matter, since his company was not involved in
making decisions on law enforcement matters.

"It was all disclosed," he said, sitting in his wood-paneled offices 24
floors above Times Square. "It's two different areas of expertise."

The Salesman
Message on Security With Corporate Sponsor

He was introduced as the man who "guided America through the emotional
shock of Sept. 11 and in the difficult days that followed." When the
ovation died down that day in August 2002, Mr. Giuliani moved on to the
central premise of his appearance before a public-safety communications
convention in Nashville.

"We are never, ever, ever going to be able to figure out every possible
way in which we can be attacked," Mr. Giuliani said, according to a
recording of his remarks. He went on to urge support for a major change
in the radio spectrum that Nextel Communications had requested of the
Federal Communications Commission. "I want to thank you and Nextel and
the private operators who all agreed on that," he said, referring to a
few other cellular carriers. "I think that can be a very positive
improvement for the future."

Mr. Giuliani's remarks that day were similar to those he had made in
scores of visits around the nation, in to more than 30 states since he
left office, where he has given lectures on leadership, promoted the
campaigns of fellow Republicans and reflected on his experiences on
Sept. 11, 2001, sometimes speaking at events that are like auto shows
for antiterrorism products.

But his audiences, including the crowd in Nashville, are not always told
that Mr. Giuliani is being paid by companies that sell just the kind of
security products or services he in effect is urging his audiences to
consider buying. Nextel has sent the mayor or members of his staff to
St. Louis, Washington, Austin, Sacramento and Anaheim, Calif., to
promote its products, introducing him as a public safety leader who can
"address critical homeland security communications needs."

In many ways, the firm's work for Nextel embodies Mr. Giuliani's ability
to combine his new financial life with his political past and future.
The Nextel phone that he carried on Sept. 11 is now in the Smithsonian,
and his call for better communications during disasters, part of his
stock speech demanding better preparation for the next attack, is
virtually identical to the thrust of Nextel's marketing campaign for its
wireless service. At the same time, his appearances burnish his public
profile and allow him to resume his best-received role providing
reassurance to worried audiences.

Nextel has hardly been the only one of his clients that has benefited
from repeated warnings about the need for greater domestic security. Aon
Corporation, the insurance giant that lost 175 of its World Trade Center
employees and associates on Sept. 11, has joined with the partnership to
create what it calls the Aon Giuliani Protocol, a crisis management
service sold to corporations worldwide. Strohl Systems of King of
Prussia, Pa., is jointly marketing with Giuliani Partners special
computer software that helps companies after operations are disrupted by
a disaster.

CB Richard Ellis, the global real estate firm, has signed a partnership
with Mr. Giuliani under which Giuliani Partners evaluates office
buildings to identify vulnerabilities they might have to possible
terrorist attacks or weaknesses in fire and life-safety equipment.
Entergy Nuclear Northeast, which owns five nuclear power plants,
including Indian Point Energy Center in Buchanan, N.Y., about 35 miles
north of Manhattan, hired Giuliani Partners to evaluate its emergency
planning and security systems, and in particular its ability to defend
the plants against a possible terrorist attack.

Nextel, however, may have the most at stake from the work it hired
Giuliani Partners to perform: a contract that went far beyond the
wireless company's message that government agencies should upgrade
communications equipment so employees can talk to one another during an
emergency.

The company's combination cellular and two-way-radio phones, it turns
out, have caused radio interference around the country.  To preserve its
franchise in the face of complaints about the interference, Nextel has
billions of dollars riding on a petition before the F.C.C. to rearrange
part of the radio spectrum, and helping to achieve that goal is one of
the principal reasons Nextel hired Giuliani Partners. At appearances
around the country, including the one in Nashville, Mr. Giuliani has
told audiences about the need to deal with the interference problem,
even specifically supporting Nextel's proposed solution on occasion.

Verizon, a competitor of Nextel in this arena, says this method, if
approved by the F.C.C., would be worth $6 billion to Nextel.  But Nextel
officials have vigorously disputed any suggestion that they will profit
from the reassignment of the wireless spectrum, saying the effort is
purely intended to eliminate interference.

Mr. Giuliani's staff members acknowledge that he and members of his team
have worked in a orchestrated way with Nextel to help persuade public
safety officials to back the Nextel petition and to encourage
governments to upgrade their equipment.  "That's not lobbying," said Mr.
Hess, the senior managing partner at Mr. Giuliani's consulting firm.
"That's the First Amendment."

Mr. Giuliani has stayed away from directly urging the F.C.C. to approve
Nextel's petition. But his appeal was so great that the F.C.C. wanted
his help on a broadcast industry project, and an agency official asked
Nextel to see if Mr. Giuliani might be interested. Giuliani Partners was
eager to comply, sending three representatives to an F.C.C. meeting in
Washington and then assigning a member of the firm to spend months
working with the industry committee on its report.

The advice was offered free to the F.C.C., but Mr. Giuliani and his team
have had a direct financial interest in the success of Nextel's
ventures. At least part of his compensation package, according to a
Securities and Exchange Commission filing, consisted of stock options
that Giuliani Partners exercised. If the firm has already sold the
Nextel stock it bought at a discounted price, it has earned at least $15
million. If it is still holding onto that stock, it has realized a
profit of $28 million from the Nextel contract.

After two years in the business world, Mr. Giuliani said he is enjoying
this experiment in public speaking, management advice and capitalism.
The firm, he said, has grown faster than he expected it would. He does
not deny, however, that a return to politics is probably inevitable.

"I know at some point in the future I'm going to want to be probably
involved in public office again," he said in the interview. "If you ask
me when, which one, my ideas haven't been formulated."

As to what will happen to Giuliani Partners if the large chunk of his
staff that went from the mayor's office to his firm follows him back
into politics, Mr. Giuliani said he cannot say for sure.

"Who knows the answer to that," Mr. Giuliani said. "It really depends on
a prediction of what our business is going to be like at least a couple
of years from now."

Right now, he said, in addition to helping President Bush's re-election
campaign, he is focusing on building his business.

http://www.nytimes.com/2004/02/22/nyregion/22GIUL.html?ex=1078030800&en=da9d5d3163d812b6&ei=5062&partner=GOOGLE

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From: "marcel_rf1" <[email-masked]>
Date: Tue, 24 Feb 2004 10:06:51 -0000

Nextel Pays Giuliani Partners $15M >>>>>> Richard J. Sheirer gets a job deciding who gets Nextel's money.

What the article fails to mention is Richard J. Sheirer, a senior vice president with Giuliani Partners who formerly served as 
commissioner of New York City's Office of Emergency Management during Mayor Rudolph W. Giuliani's administration is on the 
Board of Directors of the PSAP Readiness Fund (NEXTEL) which provides money to Public Safety E-911 projects.

You got to love these guys! And P/S does not have a "CLUE"

> By Selling Very Public Image, the Private Giuliani Prospers

<SNIP>

> profit of $28 million from the Nextel contract.

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