A little quick Rauner oppo
Wednesday, Apr 3, 2013 - Posted by Rich Miller
* Sometimes, comments here can be quite interesting. For example, this comment about possible Republican gubernatorial candidate Bruce Rauner was posted yesterday…
SEIU had something called GTCR watch.org but it is no longer online. Anyone know what they found?
I looked up the site on the Wayback Machine, but nothing came up. I used “.org,” “.com” and “.net.” However, I did find this press release via the Google…
A leading private equity firm with a history of investing in companies with poor corporate governance is being taken to task by SEIU of an indictment for fraud at one of its portfolio companies.
The latest edition of GTCR Watch, a newsletter for investors, details the fraud indictment at Lason, Inc., a document printing, imaging, and storage firm incorporated in Delaware and headquartered in Troy, Michigan.
An indictment for fraud brought in May 2003 by a federal grand jury in Michigan, and civil fraud charges filed on the same day by the SEC, allege that this rapid growth allowed Lason’s executives to fraudulently inflate the firm’s reported revenue, expenses, and earnings from 1997 onward.
The indictment alleges that fraudulent managerial behavior occurred at Lason while GTCR principles Bruce Rauner and Joseph Nolan served on its board and on key board committees, costing shareholders over $900 million in lost equity.
“Any institution contemplating an investment in a GTCR fund should consider the performance of GTCR’s principals as public company directors before undertaking such a commitment,” said Steve Abrecht, Director of the SEIU Capital Stewardship Program.
The report has been posted on a website, www.GTCRWatch.com, which provides investors with detailed information about the corporate governance practices of GTCR Golder Rauner, LLC’s companies.
* The company’s CFO ultimately pled guilty and was sentenced to prison…
William J. Rauwerdink, the former CFO of Lason, Inc., was sentenced to 3 years and nine months in prison for his role in the company’s accounting fraud nearly 10 years ago, according to the U.S. attorney’s office
Rauwerdink pleaded guilty last November to conspiring to commit mail, wire, and bank fraud and making false statements to the Securities and Exchange Commission, and to filing a false and fraudulent quarterly report with the SEC — offenses which date back to early 1998 through late 1999. It was also not the first time Rauwerdink had run afoul of federal regulators — as CFO of Medstat Group, he agreed in December 1995 to settle charges of insider trading in Medstat stock and was permanently enjoined by a federal district judge from committing securities fraud. […]
“Rauwerdink was deeply involved in this accounting fraud,” said a press release from Stephen J. Murphy, United States Attorney for the Eastern District of Michigan. Rauwerdink, Murphy said, met with other Lason executives “to ensure that Lason’s reported earnings per share met or exceeded the estimates of stock analysts.”
According to the announcement, Lason reported its inflated earnings per share figures every quarter through press releases drafted by Rauwerdink, conference calls in which he participated, and quarterly and annual filings with the SEC that he signed.
I’m attempting to get the files from that now-defunct website. Stay tuned.
* And if you’d like a hearty laugh, take a look at this Illinois Review article, which really stretches things beyond the limit with a piece called “Rauner and Six Degrees of Bill Ayers.”
They actually “connect” Rauner to Ayers via the Civic Committee of the Commercial Club of Chicago, which is without a doubt the most pro-corporate group in all of Chicago.
Sheesh.
- Oswego Willy - Wednesday, Apr 3, 13 @ 10:26 am:
@TheRaunerChicken - At least no one is talking about me, right? #VettingYourselfIsNotVetting
- Frenchie Mendoza - Wednesday, Apr 3, 13 @ 10:31 am:
From the Google result linked above (pretty much says it all, I guess):
—
“Any institution contemplating an investment in a GTCR fund should consider the performance of GTCR’s principals as public company directors before undertaking such a commitment,” said Steve Abrecht, Director of the SEIU Capital Stewardship Program.
—
And, no, GTCR does not mean “Glacial Travel and Crevasse Rescue” — but “Golder, Thoma, Cressey, Rauner”
- Oswego Willy - Wednesday, Apr 3, 13 @ 10:32 am:
===…while GTCR principles Bruce Rauner and Joseph Nolan served on its board and on key board committees, costing shareholders over $900 million in lost equity.===
$900 Million? I wonder if we will ever find out Rauner’s role in William J. Rauwerdink’s affiliation as CFO, and did Rauner write a letter, say a, “Please have mercy on Mr. Rauwerdink, he is a fine man…” letter, to the Federal Judge before sentencing?
Maybe Rauner thought “Vetting” was driving a Corvette or something?
And so, it continues …
- circularfiringsquad - Wednesday, Apr 3, 13 @ 10:34 am:
Bet all the activist shareholder groups haved tracked CousinBrucey investing…wonder if claims to be passive investor?
Then you need the hedge fund hustle docs…pension funds probably have in some drawer
Then we can see who lied to who
Fire,Aim, Ready
- walkinfool - Wednesday, Apr 3, 13 @ 10:44 am:
Not sure what this actually says about Rauner’s capabilities. I remain hopeful he might be a reasonable alternative when we get past the political-pap-for-fundraising phase of his campaign.
It could be seen as a case where the CEO and CFO cleverly defrauded their own investors with bad information, including those on their board. Like Enron.
On the other hand, many hedge fund leaders are smart financial market operators, but clueless when it comes to actually managing a job-creating enterprise. This might be a case of that kind of shortcoming in Rauner as a board member. We don’t want a governor who cannot quickly smell false reporting and suspect potential corruption.
- walkinfool - Wednesday, Apr 3, 13 @ 10:52 am:
BTW @Rich: Impressive work.
- Rod - Wednesday, Apr 3, 13 @ 10:55 am:
Walkinfool may be an appropriate pseudonym in this case. But I do encourage all Republicans to fully back Mr. Rauner, it will make life much eaiser for those of us of a different political persuasion.
- wordslinger - Wednesday, Apr 3, 13 @ 11:03 am:
So fraud costs investors $900 million in equity and the mastermind gets three years, 10 months at Club Fed?
Good work if you can get it. Never steal anything small.
- LincolnLounger - Wednesday, Apr 3, 13 @ 11:04 am:
Based upon Mr. Rauner’s past activities, many of us aren’t sure you necessarily have a “different political persuasion”, Rod.
- walkinfool - Wednesday, Apr 3, 13 @ 11:16 am:
==Walkinfool may be an appropriate pseudonym in this case==
@Rod: For me or for Bruce? [chuckling]
IMHO Rauner could be tougher to beat than Brady, Schock, Radogno, Murphy, Duffy, — or any other ambitious character who comes to mind other than Dillard or Rutherford.
- Meanderthal - Wednesday, Apr 3, 13 @ 11:31 am:
Seems to me that there were plenty of prominent Democrats in this state who invested in Rod Blago or served on Blago’s “board of directors” when he was indicted.
Rauner still needs to prove himself as a candidate but I interpret the flogging he is getting here as an indication that some Democrats fear him.
- Wumpus - Wednesday, Apr 3, 13 @ 11:36 am:
only losing $900 mil in equity, maybe there is hope for IL leadership.
- Jasper - Wednesday, Apr 3, 13 @ 11:51 am:
This is just what we need….another hog at the trough of public funds
- Publius - Wednesday, Apr 3, 13 @ 12:06 pm:
Rauner had an interest in a firm which profited from stu levine’s bribery. He had money in, and appeared in front of a state agency for a company making money managing the state’s cash (just like bill cellini). And now this. Which proves that he is an outsider. Those guys are in the federal pen and he is outside.
- hisgirlfriday - Wednesday, Apr 3, 13 @ 12:09 pm:
This certainly provides more context to his hatred of public employee unions. And here I thought the hedge fund agenda to destroy public employee unions was about hurting democrats and cutting their taxes. It didn’t occur to me the way that Wall Street benefits from the destruction of unions is also cutting back on investor oversight and investor advocacy.
- Boone's is Back - Wednesday, Apr 3, 13 @ 12:18 pm:
===They actually “connect” Rauner to Ayers via the Civic Committee of the Commercial Club of Chicago, which is without a doubt the most pro-corporate group in all of Chicago.===
Haha- they’re doing fine work over there at the IL Review.
- Rod - Wednesday, Apr 3, 13 @ 12:35 pm:
I can see a lot of Republicans are concerned about Mr. Rauner’s relationships with Democrats. Because many of his interests have related to the promotion of charter schools in Chicago and general hostility to the Chicago Teachers Union effectively in the city Democrats are the only game in town. So his giving to Democrats is fundamentally pragmatic in nature. Again I encourage Republicans to support Mr. Rauner, certainly his support for making Illinois a right to work state or threats of ending pension payments for public sector workers pensions must be sufficent to overcome the fact that he greased the election of a few Democrats.
- BogieBog - Wednesday, Apr 3, 13 @ 1:02 pm:
I would encourage Illinois Republicans to get behind former congressman Joe Walsh for governor. Walsh has no love or relationships with any Democrats. Even Chicago Democrats like Rahm Emanuel (who is really an in-the-closet Republican). Rauner is a phony. Joe Walsh stays true to the true Republican Tea Party principles that will make Pat Quinn and corrput Chicago Democrats tremble in fear. Right?
- RNUG Fan - Wednesday, Apr 3, 13 @ 1:34 pm:
I learned something owning a newspaper.
The unions are peeing their pants over this guys and I don’t know why . I bet those charter schools end up like everything else he ever had his hands on once he gets his cut
- Boone Logan Square - Wednesday, Apr 3, 13 @ 1:41 pm:
Who funds Illinois Review? The Onion?
- Oswego Willy - Wednesday, Apr 3, 13 @ 1:49 pm:
- BogieBog -,
I am guessing .. that is …snark … right?
- just sayin' - Wednesday, Apr 3, 13 @ 1:58 pm:
Obviously Rauner needs to pump in a few more million to convince us he’s a regular guy. I’m sure more paid facebook ads with rubber chickens will do the trick.
- Just The Way It Is One - Wednesday, Apr 3, 13 @ 2:55 pm:
Oh brother…pairing Rauner and Ayers is like pairing the Pope with the Ayatollah of Iran!!!
- BogieBog - Wednesday, Apr 3, 13 @ 3:01 pm:
Yes Oswego Willy. Why should Republicans support a RINO like Rauner when they have the real thing in Joe Walsh?
- Chris - Wednesday, Apr 3, 13 @ 3:23 pm:
On Rauner and Rahm–
do not forget that the deal that made Rahm rich (sale of Security Link) had GTCR on the other side.
- Arthur Andersen - Wednesday, Apr 3, 13 @ 3:38 pm:
BogieBog, Joe Walsh is the real something, that’s for sure.
Willy, er, Bruce Wayne, warming up the BatSignal.
Alfred.
- Oswego Willy - Wednesday, Apr 3, 13 @ 4:54 pm:
- BogieBog -,
Was your response also snark? That word, snark, I do not think it means what you think it means….
- AA -,
I will look in the sky… Should I get a rubber chicken to break the ice with Rauner?
That, - BogieBog -, is snark..
- Oswego Willy - Wednesday, Apr 3, 13 @ 5:19 pm:
- Rod -,
Make sure, when you are giving Rauner a “Pass”, you give all those 80% Reagan Rule Republicans a “Pass” too!
The fact that Rauner wantsnto shut down the state, thinksnthis is Wisconsin or Indiana, AND is willing to raise his hand to be sworn in and then will defy his oath in regards to the Illinois Constitution is enough for me to know is not ready to run the state of Illinois, given his idea of a governor does, and the Oath, and the Constitution….
Other than that, Rauner is a choice, that IS true…
- Arthur Andersen - Wednesday, Apr 3, 13 @ 6:14 pm:
Bruce/Willy,
Definitely. Remember, We’ll be riding in a ‘plain brown wrapper” Taurus instead of the Batmobile because that’s what Rauner does, right?
- Oswego Willy - Wednesday, Apr 3, 13 @ 7:05 pm:
- AA -,
We need to remember to teach them “How to hit the Google key” since it appears we are dealing with the “researched-challenged”
You figure, we start easy, we can’t overwhelm Rauner with real oppo research right out of the gate…start small with that Internet thing..
- park - Wednesday, Apr 3, 13 @ 7:45 pm:
So Rich, is this your ‘he kills puppies’ story for this election cycle?
I don’t care for the guy, but really….
Chicago Dem’s have run the State into the gutter since 2002, and you still feel a need to torpedo any Republican who might pose a threat to the abominable status quo. How is this good for the State of Illinois?
- RNUG Fan - Wednesday, Apr 3, 13 @ 8:05 pm:
I see that Freedom Works -the Koch Brothers-are joining his exploratory committee-It also involves the investments which have become the center of a crisis that just must be fixed now.
There are tons of questions about what Rauner and his friends new and old are up to in this state
- thechampaignlife - Wednesday, Apr 3, 13 @ 8:44 pm:
Lason continues to do business with the State.
- RNUG Fan - Wednesday, Apr 3, 13 @ 9:51 pm:
I see it was acquired by an Indian outsourceing corporation for 148 million
I am sure the Trib will be on top of this one