Giuliani Partners
Encyclopedia
Giuliani Partners LLC is a management consulting
and security consulting business founded by former New York City Mayor
Rudolph Giuliani in January 2002.
and Chief Executive Officer
of Giuliani Partners; he replaced Giuliani in this role in June 2007, as Giuliani was in midst of his campaign for president
. Peters was formerly a deputy mayor of New York, and many of the managing partners and executives of Giuliani Partners are former New York City
officials, counsels, emergency services leaders, etc. from Giuliani's time as mayor. There is a subsidiary of the partnership, Giuliani Security & Safety LLC (before 2005, Giuliani-Kerik), which focuses on security consulting, especially regarding buildings; its Chairman and Chief Executive Officer is Pasquale J. D'Amuro, a former Assistant Director in Charge in the Federal Bureau of Investigation
's New York office and an Inspector in Charge following the September 11, 2001 terrorist attacks. Other subsidiaries include Giuliani Safety & Security Asia and Giuliani Compliance Japan.
Giuliani Partners' stated mission is
"No client is ever approved or worked on without a full discussion with Rudy... We're cautious in the right sense of that term, in terms of who we work for. We always want to make sure it is a company that is doing the right thing, that we're proud to represent," according to Giuliani Partners’ senior managing partner, Michael D. Hess, former Corporation Counsel
for New York City.
Giuliani’s colleagues at Giuliani Partners have included founding member and Vice President Matthew Mahoney
, a former Deputy Director of Advance for the Mayor’s Office; Bernard Kerik
, Giuliani's former police commissioner, who was later accused of having ties to organized crime and left the firm in 2004; former FBI man D'Amuro, who admitted taking six non-evidentiary artifacts from Ground Zero
as mementos, but against whom no action was taken by the FBI; and Monseignor Alan Placa
, a high school friend of Giuliani and a former Roman Catholic priest who was accused of sexually molesting numerous children and of covering up molestation
in the church. Giuliani Partners has stated that Giuliani "believes that Alan Placa has been unjustly accused," and that the firm has no plans to dismiss him.
The firm is privately held. Sources have placed Giuliani Partners' earnings at over $100 million in the five years through early 2007. Another estimate shows it with annual revenues of $40 million and 55 employees. Even after stepping down as CEO and Chairman, Giuliani holds a 30 percent equity stake in the partnership, which paid him $4.1 million in 2006. The firm's fortunes, which had always been dependent upon Giuliani's star power, diminished due to Giuliani's absence during his campaign, which ended in late January 2008. Its client list and revenues decreased, and it went from about 60 to about 50 employees.
Giuliani subsequently returned to work at the firm, splitting time between it and the law firm Bracewell & Giuliani
. The company made an emphasis on consulting on energy-related matters. In July 2008, Giuliani Partners announced it was diversifying via the creation of a real estate
investment fund, that would target foreign investors who wanted to capitalize on the weak dollar to invest in New York and Washington real estate. The fund would be a collaboration with Rockville, Maryland
-based Berman Enterprises. By mid-2009, Giuliani Partners was still feeling the effects of Giuliani's ongoing political life, including the departure of former Giuliani chief of staff Anthony V. Carbonetti, who was working on possible Giuliani-related aspects of the New York gubernatorial election, 2010
.
The firm's headquarters had been in an office overlooking Times Square
in New York since its founding year, but in 2010 it relocated further north in Manhattan to share space with the New York office of Giuliani's law firm, Bracewell & Giuliani
. The firm had further reduced its number of employees, and Bracewell & Giuliani was now the former mayor's primary public business activity.
Clients of Giuliani Partners are required to sign confidentiality agreements, so they do not comment about the work they get done or the amount that they have paid for it. Giuliani himself has refused to talk about his clients, the work he did for them, the compensation he received from them, or any details about the company.
One of Giuliani Partners' clients during this time included an admitted drug smuggler and millionaire founder of companies that perform electronic information gathering (datamining) on individuals, Hank Asher
, who according to a shareholder in the company, hired Giuliani for his "influence with the federal government to enable Mr. Asher to take an active role in Seisint as a chief executive officer despite the allegations about his drug dealing." Giuliani helped Asher's company get $12 million in government grants. After Asher's past was publicly revealed, he resigned from the company; Giuliani defended him to newspapers without mentioning that Asher was a paying client. After Asher's resignation, investors in the company, Seisint, looked into how much Giuliani Partners had been paid: $2 million a year in fees, a commission on sales of Seisint products, and 800,000 warrants for Seisint stock, which would prove valuable when Seisent was sold to Lexis Nexis for $775 million. One investor sued the board, claiming that Giuliani's contributions had not been worth the large amount paid. The Seisent database product that Giuliani Partners was to help market, the Multistate Anti-Terrorism Information Exchange, was itself criticized on civil liberties
grounds, and within two years the program had folded.
In representing a pharmaceutical company, Purdue Pharma
, maker of OxyContin, in a case against the Drug Enforcement Administration
, Giuliani Partners negotiated a $2 million fine and no further penalty for what the DEA called "lax security" at plants that produced OxyContin, which the DEA said was being used as a recreational drug. The lead DEA investigator later said that Purdue Pharma got off easily in the case because of Giuliani's connections to government officials. Giuliani later represented Purdue Pharma in a recently settled case in which the DEA accused the company of marketing OxyContin by playing down its level of addictive properties. Giuliani met with government lawyers six times to help negotiate a settlement in the case.
Forbes
reported in November 2006 that Giuliani Partners accepted fees from penny stock
firms, made alliances that have gone nowhere and formed pacts with businesses and individuals that have come under scrutiny by regulators and law enforcement officers. For instance, Giuliani Capital Advisors accepted 1.6 million warrants from Lighting Science Group at 60 cents, a fee of $150,000 and a promise to raise cash. The company went bankrupt, losing $412,000 on sales of $137,000 in the first part of 2006. Another venture CamelBak
, started out under Giuliani's consulting arrangement with $31 million in sales, but was run into the ground with various missteps, including having the disgraced Bernard Kerik
sit on its board. Forbes said Giuliani's most controversial deal was throwing in with a 2004 project with Applied DNA Sciences. Its backer, Richard Langley Jr. had previously pleaded guilty to conspiracy to commit wire fraud and commercial bribery in another penny stock scam.
Mexico City
hired Giuliani Partners to consult on its crime rate, hoping for a drop in crime like that New York City had experienced in the 1990s. Giuliani toured the city for a day and Giuliani Partners produced a report analyzing ways in which crime could be reduced. However, in the year after the plan was implemented, crime dropped 1% and some city officials expressed regret at hiring Giuliani for a $4.3 million fee. Some called it a "$4 million publicity stunt". Some of the recommendations that were put into place included using Breathalyzers on drunk drivers and targeting "squeegee men".
Giuliani Partners has had contracts since 2005 with Qatar
's Ministry of the Interior, for security advice and consulting services. These contracts were overseen by Minister Abdullah bin Khalifah Al Thani
, a member of Qatar's royal family.
's investment banking unit. The new investment bank would be known as Giuliani Capital Advisors LLC and would advise companies on acquisitions, restructurings and other strategic issues.
On March 5, 2007, as a consequence of his presidential campaign, Giuliani Capital Advisors was sold to Macquarie Group
, an Australian financial group, for an amount that analysts said might approach $100 million.
Management consulting
Management consulting indicates both the industry and practice of helping organizations improve their performance primarily through the analysis of existing organizational problems and development of plans for improvement....
and security consulting business founded by former New York City Mayor
Mayor of New York City
The Mayor of the City of New York is head of the executive branch of New York City's government. The mayor's office administers all city services, public property, police and fire protection, most public agencies, and enforces all city and state laws within New York City.The budget overseen by the...
Rudolph Giuliani in January 2002.
Structure
Peter Powers is ChairmanChairman of the Board
The Chairman of the Board is a seat of office in an organization, especially of corporations.Chairman of the Board may also refer to:*Chairman of the Board , a 1998 film*Chairmen of the Board , a 1970s American soul music group...
and Chief Executive Officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...
of Giuliani Partners; he replaced Giuliani in this role in June 2007, as Giuliani was in midst of his campaign for president
Rudy Giuliani presidential campaign, 2008
Rudy Giuliani’s 2008 presidential campaign began following the formation of the Draft Giuliani movement in October 2005. The next year, Giuliani opened an exploratory committee and formally announced in February 2007 that he was actively seeking the presidential nomination of the Republican...
. Peters was formerly a deputy mayor of New York, and many of the managing partners and executives of Giuliani Partners are former New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
officials, counsels, emergency services leaders, etc. from Giuliani's time as mayor. There is a subsidiary of the partnership, Giuliani Security & Safety LLC (before 2005, Giuliani-Kerik), which focuses on security consulting, especially regarding buildings; its Chairman and Chief Executive Officer is Pasquale J. D'Amuro, a former Assistant Director in Charge in the Federal Bureau of Investigation
Federal Bureau of Investigation
The Federal Bureau of Investigation is an agency of the United States Department of Justice that serves as both a federal criminal investigative body and an internal intelligence agency . The FBI has investigative jurisdiction over violations of more than 200 categories of federal crime...
's New York office and an Inspector in Charge following the September 11, 2001 terrorist attacks. Other subsidiaries include Giuliani Safety & Security Asia and Giuliani Compliance Japan.
Giuliani Partners' stated mission is
- "dedicated to helping leaders solve critical strategic issues, accelerate growth, and enhance the reputation and brand of their organizations in the context of strongly held values ... based on six fundamental principles: Integrity, Optimism, Courage, Preparedness, Communication, Accountability."
"No client is ever approved or worked on without a full discussion with Rudy... We're cautious in the right sense of that term, in terms of who we work for. We always want to make sure it is a company that is doing the right thing, that we're proud to represent," according to Giuliani Partners’ senior managing partner, Michael D. Hess, former Corporation Counsel
Corporation Counsel
The Corporation Counsel is the title given to the chief legal officer in some municipal and county jurisdictions, who handles civil claims against the city, including negotiating settlements and defending the city when it is sued. Most corporation counsels do not prosecute criminal cases, though...
for New York City.
Giuliani’s colleagues at Giuliani Partners have included founding member and Vice President Matthew Mahoney
Matthew Mahoney
Matthew Mahoney is currently the Associate Commissioner for Intergovernmental Affairs at the New York City Department of Environmental Protection . DEP manages the City's water supply, providing more than of water each day to more than 9 million residents, including 8 million in New York City...
, a former Deputy Director of Advance for the Mayor’s Office; Bernard Kerik
Bernard Kerik
Bernard Bailey "Bernie" Kerik is a former New York City Police Commissioner, Secretary of Homeland Security nominee, and now a federal felon. Kerik was New York City Police Commissioner from 2000 to 2001, under Mayor Rudy Giuliani. In December 2004, President George W. Bush nominated Kerik as...
, Giuliani's former police commissioner, who was later accused of having ties to organized crime and left the firm in 2004; former FBI man D'Amuro, who admitted taking six non-evidentiary artifacts from Ground Zero
Ground zero
The term ground zero describes the point on the Earth's surface closest to a detonation...
as mementos, but against whom no action was taken by the FBI; and Monseignor Alan Placa
Alan Placa
Monsignor Alan Placa is a priest in good standing employed by Giuliani Partners, a management consulting and security consulting business founded by high school friend Rudy Giuliani, former New York City Mayor....
, a high school friend of Giuliani and a former Roman Catholic priest who was accused of sexually molesting numerous children and of covering up molestation
Roman Catholic sex abuse cases
The Catholic sex abuse cases are a series of convictions, trials and ongoing investigations into allegations of sex crimes committed by Catholic priests and members of religious orders. These cases began receiving public attention beginning in the mid-1980s...
in the church. Giuliani Partners has stated that Giuliani "believes that Alan Placa has been unjustly accused," and that the firm has no plans to dismiss him.
The firm is privately held. Sources have placed Giuliani Partners' earnings at over $100 million in the five years through early 2007. Another estimate shows it with annual revenues of $40 million and 55 employees. Even after stepping down as CEO and Chairman, Giuliani holds a 30 percent equity stake in the partnership, which paid him $4.1 million in 2006. The firm's fortunes, which had always been dependent upon Giuliani's star power, diminished due to Giuliani's absence during his campaign, which ended in late January 2008. Its client list and revenues decreased, and it went from about 60 to about 50 employees.
Giuliani subsequently returned to work at the firm, splitting time between it and the law firm Bracewell & Giuliani
Bracewell & Giuliani
Bracewell & Giuliani LLP is an international law firm based in Houston, Texas, that began in 1945. The firm has over 470 lawyers, and has United States offices in New York, Washington, D.C., Hartford, San Antonio, Seattle, Dallas, and Austin, and overseas offices in Dubai, and London...
. The company made an emphasis on consulting on energy-related matters. In July 2008, Giuliani Partners announced it was diversifying via the creation of a real estate
Real estate
In general use, esp. North American, 'real estate' is taken to mean "Property consisting of land and the buildings on it, along with its natural resources such as crops, minerals, or water; immovable property of this nature; an interest vested in this; an item of real property; buildings or...
investment fund, that would target foreign investors who wanted to capitalize on the weak dollar to invest in New York and Washington real estate. The fund would be a collaboration with Rockville, Maryland
Rockville, Maryland
Rockville is the county seat of Montgomery County, Maryland, United States. It is a major incorporated city in the central part of Montgomery County and forms part of the Baltimore-Washington Metropolitan Area. The 2010 U.S...
-based Berman Enterprises. By mid-2009, Giuliani Partners was still feeling the effects of Giuliani's ongoing political life, including the departure of former Giuliani chief of staff Anthony V. Carbonetti, who was working on possible Giuliani-related aspects of the New York gubernatorial election, 2010
New York gubernatorial election, 2010
The New York gubernatorial election of 2010 was held on Tuesday, November 2, 2010, to elect the Governor of New York, who will serve a four-year term to begin in January 2011. Incumbent Democratic Governor David Paterson, elected as Lieutenant Governor in 2006 as the running mate of former Governor...
.
The firm's headquarters had been in an office overlooking Times Square
Times Square
Times Square is a major commercial intersection in the borough of Manhattan in New York City, at the junction of Broadway and Seventh Avenue and stretching from West 42nd to West 47th Streets...
in New York since its founding year, but in 2010 it relocated further north in Manhattan to share space with the New York office of Giuliani's law firm, Bracewell & Giuliani
Bracewell & Giuliani
Bracewell & Giuliani LLP is an international law firm based in Houston, Texas, that began in 1945. The firm has over 470 lawyers, and has United States offices in New York, Washington, D.C., Hartford, San Antonio, Seattle, Dallas, and Austin, and overseas offices in Dubai, and London...
. The firm had further reduced its number of employees, and Bracewell & Giuliani was now the former mayor's primary public business activity.
Client base
Giuliani Partners has been categorized by various media outlets as a lobbying entity capitalizing on Giuliani's name recognition.Clients of Giuliani Partners are required to sign confidentiality agreements, so they do not comment about the work they get done or the amount that they have paid for it. Giuliani himself has refused to talk about his clients, the work he did for them, the compensation he received from them, or any details about the company.
One of Giuliani Partners' clients during this time included an admitted drug smuggler and millionaire founder of companies that perform electronic information gathering (datamining) on individuals, Hank Asher
Hank Asher
Hank Asher is a businessman best known as the Father of data fusion. With a reported fortune of around US$500 million earned as the founder of several data fusion / data mining companies that compile information about companies, individuals and their interrelationships from thousands of different...
, who according to a shareholder in the company, hired Giuliani for his "influence with the federal government to enable Mr. Asher to take an active role in Seisint as a chief executive officer despite the allegations about his drug dealing." Giuliani helped Asher's company get $12 million in government grants. After Asher's past was publicly revealed, he resigned from the company; Giuliani defended him to newspapers without mentioning that Asher was a paying client. After Asher's resignation, investors in the company, Seisint, looked into how much Giuliani Partners had been paid: $2 million a year in fees, a commission on sales of Seisint products, and 800,000 warrants for Seisint stock, which would prove valuable when Seisent was sold to Lexis Nexis for $775 million. One investor sued the board, claiming that Giuliani's contributions had not been worth the large amount paid. The Seisent database product that Giuliani Partners was to help market, the Multistate Anti-Terrorism Information Exchange, was itself criticized on civil liberties
Civil liberties
Civil liberties are rights and freedoms that provide an individual specific rights such as the freedom from slavery and forced labour, freedom from torture and death, the right to liberty and security, right to a fair trial, the right to defend one's self, the right to own and bear arms, the right...
grounds, and within two years the program had folded.
In representing a pharmaceutical company, Purdue Pharma
Purdue Pharma
Purdue Pharma L.P., is a privately held pharmaceutical company founded by physicians and now located in Stamford, Connecticut, USA. In its early years, Purdue was known for its antiseptic product, Betadine Solution, and its Senokot laxatives...
, maker of OxyContin, in a case against the Drug Enforcement Administration
Drug Enforcement Administration
The Drug Enforcement Administration is a federal law enforcement agency under the United States Department of Justice, tasked with combating drug smuggling and use within the United States...
, Giuliani Partners negotiated a $2 million fine and no further penalty for what the DEA called "lax security" at plants that produced OxyContin, which the DEA said was being used as a recreational drug. The lead DEA investigator later said that Purdue Pharma got off easily in the case because of Giuliani's connections to government officials. Giuliani later represented Purdue Pharma in a recently settled case in which the DEA accused the company of marketing OxyContin by playing down its level of addictive properties. Giuliani met with government lawyers six times to help negotiate a settlement in the case.
Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
reported in November 2006 that Giuliani Partners accepted fees from penny stock
Penny stock
In the United States, penny stocks are common shares of small public companies that trade at less than $1.00. In some countries, similar shares of stock are known as cent stocks.-Concerns for investors:...
firms, made alliances that have gone nowhere and formed pacts with businesses and individuals that have come under scrutiny by regulators and law enforcement officers. For instance, Giuliani Capital Advisors accepted 1.6 million warrants from Lighting Science Group at 60 cents, a fee of $150,000 and a promise to raise cash. The company went bankrupt, losing $412,000 on sales of $137,000 in the first part of 2006. Another venture CamelBak
CamelBak
CamelBak Products, LLC is an outdoors equipment company known primarily for its hydration products, such as hydration packs and water bottles. CamelBak is also a supplier of hydration packs, protective gear, and other products to the U.S. military and law enforcement agencies around the world.The...
, started out under Giuliani's consulting arrangement with $31 million in sales, but was run into the ground with various missteps, including having the disgraced Bernard Kerik
Bernard Kerik
Bernard Bailey "Bernie" Kerik is a former New York City Police Commissioner, Secretary of Homeland Security nominee, and now a federal felon. Kerik was New York City Police Commissioner from 2000 to 2001, under Mayor Rudy Giuliani. In December 2004, President George W. Bush nominated Kerik as...
sit on its board. Forbes said Giuliani's most controversial deal was throwing in with a 2004 project with Applied DNA Sciences. Its backer, Richard Langley Jr. had previously pleaded guilty to conspiracy to commit wire fraud and commercial bribery in another penny stock scam.
Mexico City
Mexico City
Mexico City is the Federal District , capital of Mexico and seat of the federal powers of the Mexican Union. It is a federal entity within Mexico which is not part of any one of the 31 Mexican states but belongs to the federation as a whole...
hired Giuliani Partners to consult on its crime rate, hoping for a drop in crime like that New York City had experienced in the 1990s. Giuliani toured the city for a day and Giuliani Partners produced a report analyzing ways in which crime could be reduced. However, in the year after the plan was implemented, crime dropped 1% and some city officials expressed regret at hiring Giuliani for a $4.3 million fee. Some called it a "$4 million publicity stunt". Some of the recommendations that were put into place included using Breathalyzers on drunk drivers and targeting "squeegee men".
Giuliani Partners has had contracts since 2005 with Qatar
Qatar
Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...
's Ministry of the Interior, for security advice and consulting services. These contracts were overseen by Minister Abdullah bin Khalifah Al Thani
Abdullah bin Khalifah Al Thani
style="float:right;"| Sheikh Abdullah bin Khalifa Al Thani was a Prime Minister of Qatar from 29 October 1996 to 3 April 2007...
, a member of Qatar's royal family.
Giuliani Capital Advisors
On December 1, 2004 his consulting firm announced it purchased accounting firm Ernst & YoungErnst & Young
Ernst & Young is one of the largest professional services networks in the world and one of the "Big Four" accountancy firms, along with Deloitte, KPMG and PricewaterhouseCoopers ....
's investment banking unit. The new investment bank would be known as Giuliani Capital Advisors LLC and would advise companies on acquisitions, restructurings and other strategic issues.
On March 5, 2007, as a consequence of his presidential campaign, Giuliani Capital Advisors was sold to Macquarie Group
Macquarie Group
Macquarie Group Limited is a global investment banking and diversified financial services group, providing banking, financial, advisory, investment and funds management services to institutional, corporate and retail clients and counterparties around the world...
, an Australian financial group, for an amount that analysts said might approach $100 million.