Halliburton Heist Hauls in Millions, But James Addison Baker III Botched the Getaway Route

CorpGovActivist

(1000+ posts) Send PM | Profile | Ignore

Thu Nov-16-06 08:46 AM
Original message

Halliburton Heist Hauls in Millions, But James Addison Baker III Botched the Getaway Route

Edited on Thu Nov-16-06 09:42 AM by CorpGovActivist

In their panic-stricken haste to pull off the Halliburton Heist (a.k.a., the spinoff of the politically-radioactive unit, KBR), the C-level execs down in Houston have botched their "clean getaway," by drawing unwanted attention.

The British watchdogs are now up in arms: http://www.msnbc.msn.com/id/15745520/

The American media is hot on the trail of the criminal activity that took place on Cheney's watch, and of the botched cover-up attempt that has unfolded since he left the company to become a Constitutional officer: http://news.google.com/news?hl=en&ned=us&q=halliburton+nigeria&ie=UTF-8&filter=0

The right people have the gavels on Capitol Hill now, and they let no grass grow under their feet while they were in the minority: http://news.google.com/news?hl=en&ned=us&ie=UTF-8&filter=0&q=halliburton+waxman

But today, Halliburton is completing a fire sale of about 18% of the newly-minted KBR stock, to raise desperately-needed cash (while retaining more than 80% of the stock, to prevent anyone from gaining control, and to impede real due diligence): http://news.google.com/news?hl=en&ned=us&ie=UTF-8&q=halliburton+raised+ipo

Here is the IPO listing on the NYSE website: http://www.nyse.com/about/listed/IPO_Index.html

James Addison Baker III botched the clean getaway this time. The legal avenues available to Halliburton stockholders run a parallel track to the avenues available to regulators (here and abroad), law enforcement (here and abroad), and legislative branch oversight (here and abroad).

James Addison Baker III = the GOP's Clark Clifford, and Halliburton/KBR is going to become his (and his granddaddy's law firm's) BCCI.

http://en.wikipedia.org/wiki/Baker_Botts

If DUers would like to help ensure that these matters come under the appropriate gavels, please see my website, bookmark it, and check back for new ways you can help: http://www.HALwhistleblowers.org.

Please also see the action items suggested by the fine folks at http://www.HalliburtonWatch.org. They've done incredible work.

- Dave
******************************************************************************

P.S. I just sent this out to my trusted MSM contacts.

Subject: KBR Debut and Secondary Market Fraud

From: editor@halwhistleblowers.org
Date: Thu, Nov 16, 2006 9:41 am
To: editor@halwhistleblowers.org
Cc:
Bcc: (redacted)

Ladies and Gentlemen:

If you carefully examine the filings that led up to KBR's debut at today's opening bell, you will find that they were filed pursuant to the Securities Act of 1933 (which governs initial offerings).

The self-dealing financial services companies that subscribed to this IPO (while turning a blind eye to the due diligence issues they should have scrutinized) will now turn to the secondary markets, to resell some of those shares to unsuspecting third parties.

The records of the transfer agent, and of DTCC, will be discoverable, to ascertain which financial services companies (including the principal underwriters) were in on this shell game and scam. Please remember: these are the same companies that looked the other way with Enron, WorldCON, Global Crossing, Tyco, and the list goes on.

The role of Bank of America Securities in WorldCON illustrates the point, amply: http://www.google.com/search?hl=en&lr=&q=bank+of+america+securities+worldcom

Ditto for Merrill Lynch's role in the Enron SPEs: http://www.google.com/search?hl=en&lr=&q=merrill+enron

What we are witnessing here is Halliburton minting new stock, selling it to financial services companies that have a vested stake in seeing Halliburton propped up with the proceeds (e.g., many don't want Congressional scrutiny of their role in prior Halliburton/KBR financial schemes), and expecting those financial services companies to either turn around and dump their shares on the unsuspecting secondary market, or else quietly eat the loss out of "bigger picture" self-interest in preventing additional regulation, a la Sarbanes-Oxley.

Some of you are seasoned enough, and have been around the block enough times, to know that this is a shell game and a heist. I know for a fact that this deal is going to come under heavy Congressional scrutiny - the timing of it notwithstanding. Disgorgement proceedings, shareholder lawsuits, regulatory action (here and abroad), and law enforcement action (both here and abroad) will run on parallel tracks with the Congressional oversight activities.

Again, huge kudos to the fine reporting out of the Houston Chronicle! I guess after Enron, their eyes are wide open to this sort of stuff.

http://www.chron.com/disp/story.mpl/headline/biz/4338692.html

With the mid-terms over, I have significantly more time on my hands for sit-down interviews. A few of you have scheduled one, and those of you who haven't are welcome to do so. If you're a journalist on the bcc: list, I am more than happy to provide your outlet and you with the information necessary to expose the analysts, the auditors, BakerBotts, and all the aiders and abetters to this Halliburton Heist.

Meanwhile, I wish you a pleasant day, and extend my very

Best regards,

- David A. Smith, Editor of www.HALwhistleblowers.org (placeholder still up; full site coming soon)
(not to be confused, ever again, with David R. Smith, the as-yet-unindicted VP of Tax at Dresser Industries, then Halliburton)