Scoop has an Ethical Paywall
Sludge Report #123 – You Can’t Touch Pug Winokur
In This Edition: Catherine Fitts Response to SEC CIO re SEC's Relationship With DynCorp and Arthur Andersen/Conflicts of Interest - Scoop Correspondence with Dyncorp Vice President, Corporate & Marketing Communications Charlene A. Wheeless
NOTE: Authors of this report will be anonymous and wide ranging, and occasionally finely balanced. Indeed you are invited to contribute: The format is as a reporters notebook. It will be published as and when material is available. C.D. Sludge can be contacted at sludge@scoop.co.nz. The Sludge Report is available as a free email service..Click HERE - http://www.scoop.co.nz/mason/myscoop/ to subscribe...
Smug Pug The Cancer Man
Sludge Report #123
You Can’t Touch Pug Winokur
Herbert “Pug” Winokur was the chairman of the Enron Finance Committee that approved the loss hiding and profit boosting accounting measures blamed for the bankruptcy of the largest company in US history.
He is also on the ultra-secretive non-elected Board of Governors of the Harvard Corporation.
And he is a director of DynCorp – a mega-corporation in the security, telecomms and military contracting arena which provides security and communications systems to most of the US Government – including the Department of Justice - and many of the US banks and mega corporations. It also provides mercenaries to the war on drugs in Colombia among other things.
Several members of the George W. Bush cabinet are former executives and shareholders in Enron including the Vice President.
Many also have ties to Dyncorp and George himself went to Harvard.
Pug Winokur is believed to have been involved in the Harken Energy deal that connects George to financing from Osama bin Laden. (See… The GW Bush - Osama Bin Laden Connection http://www.scoop.co.nz/mason/stories/HL0109/S00108.htm)
Hopefully you by now have the picture.
Now, according to the US President's spokesman no special care need be taken with ensuring the Department of Justice investigation into Enron is sufficiently independent.
In Sludge’s view if ever there was a case for having a special counsel appointed for investigation of a President and his Government – ala Kenneth Star – then now is that occasion.
According to the rule of law no-one should be untouchable from investigation.
-----Original Message-----
http://insightmag.com/main.cfm?include=detail&storyid=163052
From: Bartell, Michael E.
Ms. Catherine Austin Fitts Thank you for your electronic mail
message on January 14, 2001 to our Office of the Inspector
General. The message was forwarded to me for response. I
appreciate your bringing the DynCorp Inc. article in Insight
magazine to our attention. We have had discussions with
senior DynCorp officials and understand that the alleged
activities noted in the Insight article were thoroughly
investigated by both DynCorp and the Department of the Army,
and appropriate action has been taken. In addition, the
DynCorp organization that provides the SEC with IT
infrastructure support is a completely separate organization
(Information & Enterprise Technology subsidiary) from the
organization referenced in the article, and none of the
personnel assigned to the SEC have had any involvement with
the referenced contract. Again, I appreciate your
concern and bringing the article to our attention.
Sincerely, Michael Bartell From:
Catherine Austin Fitts Subject: SEC's
Relationship With DynCorp and Arthur Andersen/Conflicts of
Interest Mr. Bartell: Thank you very much for your
response. DynCorp's lead investor is Herbert S. Winokur's
company, Capricorn Holdings. Mr. Winokur is the former
Chairman of DynCorp and currently sits on their board as
does his partner, Dudley Mecum. He is currently the chair of
DynCorp's compensation committee. That is the person who
leads the process to determine how much all the senior
managment gets paid ---both salary and stock options.
DynCorp's most recent proxy lists their auditor as Arthur
Anderson. Mr. Winokur is also the chair of the Finance
Committee of Enron. This is the person on the board who is
most responsible for the board in ensuring that the
company's finances are managed on a sound and prudent basis
commensurate with optimizing sharedholder's value. Mr.
Winokur testified before Congress today on behalf of a
special committee of the Enron board. He indicated that he
and his fellow board members had been mislead by Enron's
management, Enron's auditor, Arthur Anderson, and their
outside general counsel, Vinson & Elkins. Under these
circumstances, I would like your official position on the
internal control issues related to: 1. DynCorps management
of SEC and Department of Justice computer systems used by
the enforcement teams currently investigating criminal and
civil allegations regarding fraud and obstruction of justice
by Enron, Enron's board (including Mr. Winokur) and Arthur
Anderson, including their admission of document
shredding. 2. Use by the SEC of any information systems
contractors that have Arthur Anderson as an auditor or
critical joint venture partner or subcontractor and the
internal control implications to the SEC of doing so. 3.
Accessibility through your website of the SEC contract
budget so that investors can understand the potential for
conflicts of interest created by government outsourcing
critical information systems (and access to internal
knowledge) to companies whose investors benefit from changes
in SEC policies. I would also like to know what contracts
Arthur Anderson has with the SEC and whether or not ---given
their admission of document destruction and Mr Winokur's
testimony regarding their lying to board members--you plan
to continue to use such a company? My understanding is that
most government contracts permit an immediate cancellation
for convienance. Thank you very much for your response and
attention to this matter. I believe it goes to the heart of
the SEC mission of ensuring the transparency of financial
information that is an essential prerequsite for free
markets. For the SEC to do that it must have the ability to
protect its own privacy and the integrity of its information
and information systems and its own financial reporting and
management. Good housekeeping starts at home. Very Truly
Yours, Catherine Austin Fitts -----Original
Message----- From: Scoop Dear Charlene, Scoop is an
NZ based political news website. Do you have any response
on Dyncorp's behalf to the allegations made against Enron
Corp and Dyncorp board member Herbert Winokur concerning
his involvement in the construction of illegal accounting
mechanisms at Enron. regards Scoop
From:
Charlene A. Wheeless To what allegations are you
referring? Charlene A. Wheeless To: Charlene
A. Wheeless Charlene, Thankyou for your prompt response. I
am referring to allegations in the Washington Post (and
elsewhere) that Herbert Winokur [Dyncorp director] as chair
of the finance committee on Enron was instrumental in
setting up the partnerships which have been blamed for the
downfall of Enron. regards
Scoop From: Charlene
A. Wheeless Our interactions with Herbert Winokur are in respect to
his role at DynCorp. As such, it would be inappropriate for
us to comment on his business activities with another firm
of which we have no business
dealings. Thanks, C To:
Charlene A. Wheeless Charlene... Thankyou for your reply again. I
can now supply more info on the allegations re. Herbert
Winokur and why they impact on Dyncorp. I have just been
sent this by a correspondent.. seems to make some sense in
terms of conflicts of interest.... WINOKUR AND DYNCORP &
Powers/Winokur Report: As Federal investigations swirl
around Winokur and other board members, doubt has been
raised about the viability of independent investigation,
given Enron's enormous political clout, Winokur's leading
role in the company that manages information systems for
many of the investigative agencies raises a special set of
concerns. Winokur owes much of his wealth to his role in
reconstructing Dyncorp, one of the Federal government's
largest private contractors. He is a former Dyncorp
chairman and remains a director of the company. At present,
Dyncorp manages e-mail and information systems for the
Department of Justice, the Securities and Exchange
Commission and the Federal Bureau of Investigations.
Investigators are reportedly concerned that Dyncorp's
control of agency information systems could compromise
their investigations of Winokur and Enron. Harvard Watch
Org. See Full Report
http://www.harvardwatch.org This link contains a
report alleging insider trading allegations against
Winokur. I understand these have been denied by Highfields
and others.... nevertheless as our Prime Minister is prone
to say it would be fair to say that there are "allegations
swirling around" Mr
Winokur. regards From:
Charlene A. Wheeless Based on my knowledge of how our contracts
operate and the security measures put in place, I don't
believe there is any validity to the claims mentioned in the
article you pasted below. It seems far-fetched to
me. C Subject: Specific
Queries... Charlene, A few specific queries re Dyncorp
and Enron. Can Dyncorp confirm or deny that: Dyncorp is
not a subcontractor to Enron or any other Enron
affiliate. DynCorp has not subcontracted any work to Enron
or any other Enron affiliate. DynCorp is not a
subcontractor on a contract that Enron or any Enron
affilitate is also a subcontractor. As Arthur Anderson is
DynCorp's auditor, what is DynCorp's position on Arthur
Anderson's performance with respect to Enron and how it
reflects on the reliability and integrity of DynCorp's
financial statements? regards
Scoop Publisher Alastair Thompson is the co-founder of Scoop. He is of Scottish and Irish extraction and from Wellington, New Zealand. Alastair has 24 years experience in the media, at the Dominion, National Business Review, North & South magazine, Straight Furrow newspaper and online since 1997. He is the winner of several journalism awards for business and investigative work.
From: Catherine Austin
To: oig@sec.gov
Subject: DynCorp Disgrace by Kelly
O'Meara, Insight Magazine
Thursday, February 07, 2002 3:29 PM
Response to email
of 1/14
Via email
Dear Ms. Fitts,
CIO
Securities and
Exchange Commission
Sent: Thursday, February 07, 2002
4:25 PM
To: Bartell, Michael E.
Solari
Former
Assistant Secretary of Housing, First Bush
Administration.
Scoop Correspondence with
Dyncorp Vice President, Corporate & Marketing Communications
Charlene A. Wheeless
Sent: Tuesday, February 05,
2002 6:17 PM
To: Charlene A. Wheeless
Subject:
Hello - Query From NZ....
Wellington
http://www.Scoop.co.nz
Subject: RE: Hello - Query
From NZ....
Vice President,
Corporate & Marketing Communications
DynCorp--an IT and
Outsourcing Leader
Subject: RE: Hello - Query From
NZ....
Subject: RE: Hello - Query From
NZ....
Date sent: Wed, 6 Feb 2002 09:40:33 -0500
Subject: RE: Hello - Query From
NZ....
Scoop
Subject: RE: Hello - Query
From NZ....
Scoop
….. So far no
response to this final email has been received…
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2002
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