Terry McAuliffe

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Terry McAuliffe
Terry McAuliffe
49th Chairman of the Democratic National Committee
In office
2001 – 2005
Preceded by Ed Rendell
Succeeded by Howard Dean
Born February 9, 1957 (1957-02-09) (age 52)
Syracuse, New York
Political party Democratic
Spouse Dorothy McAuliffe
Children Dori, Jack, Mary, Sally, and Peter
Residence McLean, Virginia
Alma mater Georgetown University Law School (J.D.)
The Catholic University of America (B.A.)
Profession businessman, political consultant

Terence Richard "Terry" McAuliffe (born February 9, 1957) is a longtime fundraiser and political operative for the United States Democratic Party. He served as chairman of the Democratic National Committee (February 2001-February 2005). [1] He also served as chairman of the 2008 Hillary Clinton presidential campaign. He ran for the Virginia Democratic gubernatorial nomination in 2009, but lost to Creigh Deeds, whom he later endorsed.

Contents

[edit] Family and education

McAuliffe grew up in Syracuse, New York and graduated from Bishop Ludden Junior/Senior High School in 1975. His father was treasurer of the local Democratic organization.[2] He started his first business, McAuliffe Driveway Maintenance, at the age of 14. In 1979, he received a bachelors degree from The Catholic University of America in Washington, D.C. After graduation, McAuliffe took a job in the 1980 presidential reelection campaign of Jimmy Carter, and at the age of 22 became the national finance director. It was during this campaign that McAuliffe wrestled an eight-foot, 260-pound alligator for a $15,000 contribution.[3] After the campaign, McAuliffe enrolled in law school at Georgetown University. He received a Juris Doctor degree in 1984.[4] McAuliffe then served as Chairman of the Federal City National Bank by the age of 30.

He has five children with wife Dorothy: Dori, Jack, Mary, Sally, and Peter.

[edit] Politics

From 1980 to 1981, McAuliffe served as Deputy Treasurer and Director of Finance at the Democratic National Committee. From 1985 to 1987, McAuliffe served as finance director of the Democratic Congressional Campaign Committee. During the 1988 presidential campaign, he served as finance chairman for Dick Gephardt. During the 1996 election cycle, he served as national finance chairman and then national co-chairman of the Clinton-Gore re-election committee.[5] In 1997, he was chairman of the 53rd Presidential Inaugural Committee.[6] In 1999, he was chairman of the White House Millennium Celebration.[7] In 2000, McAuliffe chaired a tribute to outgoing President Bill Clinton, which set a fundraising record for a single event, raising $26.3 million.[8] The same year, he chaired the Democratic National Convention in Los Angeles. In 2001, McAuliffe spoke out against the Clinton pardons, saying he considered Clinton a great friend, but the pardons were troubling and a mistake: "I've publicly said the Rich pardon was a mistake. If I were president I wouldn't have done it. All these incidents are unfortunate, frustrating and distracting, but ultimately they will run their course."[9]

[edit] Chairman of the Democratic National Committee

In February 2001, McAuliffe was elected chairman of the DNC and served until February 2005. During that time, he raised $578 million and the Democratic Party emerged from debt for the first time in its history.[10]

Under McAuliffe, the DNC built a new headquarters, created a computer database of more than 170 million potential voters known as "Demzilla",[11] founded a Women’s Vote Center to educate and mobilize women voters, founded the Voting Rights Institute to protect voting rights, and founded “Something New,” an initiative to mobilize younger voters.

In 2002, candidate for Governor of New York, Carl McCall accused McAuliffe and the DNC of shorting his campaign of funds. McCall was trailing incumbent George Pataki by 11 points in polls. McAuliffe said, "I've got to put the resources where we can win elections," describing the races to defeat Florida Governor Jeb Bush and re-elect Senator Jean Carnahan of Missouri as his priorities.[12] Pataki and Bush were re-elected and Carnahan was defeated by Jim Talent in the 2002 gubernatorial and Senate elections. Democrats also lost seats in the House.

In the transition period between the 2002 elections and the 2004 Democratic convention, the DNC rebuilt operations and intra-party alliances. Donna Brazile, one of McAuliffe's early critics, summed up McAuliffe's revival: "We boxed. He has been punched, believe me. Now, Terry has put the party in a strong strategic position."[13]

In 2003-04, the DNC hosted six presidential primary debates, more than had ever been held previously, including the first-ever bilingual presidential debate. The DNC also partnered with the Congressional Black Caucus to hold a debate in Baltimore, Maryland. Additionally, McAuliffe worked to restructure the Democratic primary schedule so that states such as South Carolina, Arizona and New Mexico would be allowed to vote earlier, in move designed to bolster ties to African-American and Hispanic communities. According to the Washington Post, the new schedule gave Senator Kerry enough time to raise more than $200 million for the general election.[13]

In January 2005, Howard Dean followed through on a McAuliffe promise and distributed $5 million to Tim Kaine, the Democratic candidate for the Virginia governor's seat. This donation was the largest non-presidential disbursement in DNC history, and was part of McAuliffe's attempt to prove the Democrats' viability in southern states in the wake of the 2004 presidential election.[14] Kaine was successful in his bid and is the current governor of Virginia.

McAuliffe's tenure was criticised for losing seats in Congress and failure to regain the presidency with John Kerry.[citation needed]

[edit] Post DNC chairmanship

On January 23, 2007, his book, What A Party! My Life Among Democrats: Presidents, Candidates, Donors, Activists, Alligators, and Other Wild Animals (ISBN 9780312357870), was released and debuted at #5 on the New York Times Bestseller list and #1 on the Washington Post's list.

As a former party chairman, McAuliffe was one of the roughly 796 superdelegates to the 2008 Democratic National Convention.

During the 2008 presidential election campaign cycle, he was campaign chairman for Hillary Clinton.

On June 4, 2008, McAuliffe appeared on the MSNBC program Morning Joe, presenting a bottle of rum to Mika Brzezinski. After imbibing several shots of the rum on-air he stated that Barack Obama "had the numbers" and that Hillary Clinton knew she had lost the 2008 primary race.[15]

Terry McAuliffe at 2008 Democratic National Convention in Denver

In May 2009, perennial presidential candidate Ralph Nader alleged that McAuliffe offered him money to avoid key states during the 2004 presidential election. According to Nader, McAuliffe offered to financially support Nader's 2004 presidential campaign in 31 states if Nader agreed to stay off the ballot in 19 swing states.[16] McAuliffe responded to the "bribing" allegation through his spokesperson Mo Elleithee, who said the then-DNC chairman had "engaged in a conversation with Nader to try to convince him not to run, or at the very least to not compete in the targeted battleground states... He never offered him any money. He did offer to make Ralph a part of the DNC surrogate operation, send him around the country to talk about his issues - which would have been a DNC funded operation."[17]

[edit] 2009 Virginia gubernatorial campaign

Main article: Virginia gubernatorial election, 2009

On November 10, 2008, McAuliffe filed to form an exploratory committee for Governor of Virginia in the 2009 election.[18] He told reporters that he had planned to spend the next few months traveling to "every corner of Virginia" to measure interest in his possible run.[18] McAuliffe told The Washington Post that he is "best suited to carry the Democratic banner because he (would) campaign as a business leader who can bring jobs to Virginia."[18] He also cited his ability to raise money for down-ticket Democratic candidates.[18] On January 3, 2009, McAuliffe announced in a YouTube video emailed to his supporters that he would be seek the Democratic Party nomination for Governor of Virginia.[19]

McAuliffe's political team included several former staffers from the campaigns of Democrats Hillary Clinton, Tim Kaine, Mark Warner and Jim Webb. Among them were campaign manager Mike Henry, senior strategist Mo Elleithee, and communications director Delacey Skinner.[20] According to The Washington Post, McAuliffe raised $7.5 million over the course of the campaign.[21]

In the primary, McAuliffe faced two other high-profile Democrats, State Sen. Creigh Deeds, 2005 nominee for Attorney General, and Brian Moran, a former state representative and former Democratic Caucus Chairman. On June 9, 2009, Virginia democrats selected Deeds as their gubernatorial candidate with McAuliffe finishing second.[22] Virginia Attorney General Bob McDonnell is the only candidate for the Republican nomination.[23]

[edit] Business experience

 The neutrality of this section is disputed. Please see the discussion on the talk page. Please do not remove this message until the dispute is resolved. (June 2009)

In December 2008, at a Richmond gubernatorial forum, McAuliffe said he has "started five businesses in the region." [24] The Washington Post later reported that "all five are investment partnerships, with no employees, registered to his home address in McLean."[25]

[edit] Previous business interests

McAuliffe has a history of mixing politics with business deals has produced "a business career built mostly on intricate land deals and dot-com investments, often with wealthy political donors -- and sometimes with no jobs to show for it."[26] According to the Washington Post, "McAuliffe is, at his core, a salesman -- and even called himself a "hustler" in his autobiography." [27]

[edit] McAuliffe Driveway Maintenance, 1971-72, Owner

At the age of 14, McAuliffe started his first business.[28] Under the name McAuliffe Driveway Maintenance he sealed local driveways and parking lots.

[edit] Federal City National Bank, 1988-91, Chairman

In January 1988, when he was 30 years old, McAuliffe became the youngest chairman of a bank in the history of the United States when he assumed responsibility for all aspects of Federal City's operations.[29]

Shortly thereafter, the bank loaned $125,000 to a political action committee that supported Richard Gephardt's Presidential campaign. McAuliffe told the New York Times that he abstained from voting on the loan because he was also the Gephardt campaign's finance chairman.[30]

The bank also provided loans to former U.S. Representative Tony Coelho and the then-Speaker of the United States House of Representatives, Jim Wright. Both Representatives would soon retire from Congress under the cloud of scandal.[31]

In 1991, under McAuliffe's leadership, the bank was cited by federal regulators for unsafe and unsound banking practices. Regulators forced McAuliffe to sign a consent agreement that required the bank to hire outside management, review delinquent loans, track bad credit, and raise additional capital. [32]

Ultimately, McAuliffe was unable to raise the additional capital required by federal regulators.[33]

In December 1991, after four years as chairman and with his bank reeling from real-estate losses, McAuliffe merged Federal City National Bank with another institution run by political insiders, Credit International Bank. [34] [35]

[edit] McAuliffe, Kelly, Raffaelli, 1990-94, Chairman, lobbying and law firm

From 1990 until 1994, McAuliffe headed and led business development for the lobbying law firm McAuliffe, Kelly, Raffaelli.[36] As the partner in charge of bringing in clients, McAuliffe claims he never lobbied on their behalf. Nonetheless, the clients he brought to the firm occasionally engendered controversy. For example, in a 1992 report titled "The Torturer's Lobby," the Center for Public Integrity revealed that McAuliffe, Kelly and Raffaelli received several hundred thousand dollars for managing Turkey's image in the United States. The report detailed specific incidents of official torture sponsored by the Turkish government.

Other lobby clients of the firm included:

  • The American Nuclear Energy Council (to build support for a nuclear dump in Nevada)
  • Cellular Telecommunications Industry Association (CTIA)
  • International Franchise Association (to oppose the Clinton healthcare reform)
  • National Cable Television Association
  • ICI Chemical Company
  • Government of India
  • Government of Taiwan

Press reports indicate that McAuliffe excelled at driving results for the firm's clients, even after he left the firm. For example, McAuliffe and the president of the Cellular Telecommunications Industry Association attended a White House coffee on August 3, 1995. One week later, on August 10, 1995, the Clinton administration directed the government to craft a policy that would more easily accommodate the cellular industry's need for cell tower sites on federal land. [37]

[edit] The Boland Group, 1991-94, Consultant

In May 1990, American Pioneer, a savings and loan bank headquartered in Florida and owned by McAuliffe's future father-in-law (Richard Swann), was seized by federal regulators and placed into receivership with the Resolution Trust Corporation.[38]

In June 1991, McAuliffe, Tony Coelho and John Boland organized a commercial real estate company named the "The Boland Group, Inc." McAuliffe responsibilities included business development.

Between 1991 and 1994, The Boland Group brokered at least two deals between American Capital Group and the Resolution Trust Corporation. A notable principle at American Capital Group was Dorothy (Swann) McAuliffe, daughter of Richard Swann. Specifically, Dorothy McAuliffe's presence raised eyebrows because the property her company purchased was held by her father's failed bank, American Pioneer Savings and Loan before turned its assets over to the taxpayer funded Resolution Trust Corporation.[39]

The Boland Group's client list included the Clinton/Gore 1996 Re-election committee, the Resolution Trust Corporation, the Pension Benefit Guarantee Corporation, The United States Immigration and Naturalization Service and several of Washington's most powerful and connected law firms and lobbying shops.

In 1997 McAuliffe told Mother Jones magazine that he was never a partner in the Boland Group, that his exposure was limited to receiving referral fees and that he severed all ties with the company in March 1994.[40] [41]

[edit] Telergy, 1999-2001, Director

From August 1999 until August 2001, McAuliffe served on the Board of Directors at Telergy, a telecom company.[42] Press reports indicated that he had been helping the company in an unofficial capacity for the previous three years. In September 1999, a month after McAuliffe joined the board, Global Crossing invested $40 million in Telergy; McAuliffe brokered the deal and pocketed $1.2 million for his efforts. In August and September 2001, Telergy laid off 450 employees without providing any severance package.[43] In December that year, Telergy began Chapter 7 bankruptcy proceedings.[44]

[edit] Current business interests

  • Agate LLC
  • Capital Management International
  • Carlyle Energy Coinvestment III LP
  • CP III Coinvestment LP
  • CP IV Coinvestment LP
  • Paladin Capital Partners Coinvestment
  • SHP I LP
  • SHP II LP
  • Stone House Partners
  • Surrey Homes, LLC

Source: VPAP.org[45]

[edit] Controversies

 The neutrality of this section is disputed. Please see the discussion on the talk page. Please do not remove this message until the dispute is resolved. (June 2009)

[edit] Turkey, 1991-92

During 1991-92, Turkey spent $3.8 million on lobbyists. McAuliffe's lobbying firm, McAuliffe, Kelly, Raffaelli, was criticized in a report titled "The Torturers' Lobby," published in 1992 by the Center for Public Integrity for representing Turkey at a time when it was the subject of international scrutiny for alleged human rights abuses. The report revealed McAuliffe’s lobbying firm was paid hundreds of thousands of dollars to manage Turkey’s "image" within the United States. [46]

The McAuliffe gubernatorial campaign says the company's work for Turkey had to do with a longstanding dispute between Armenia and Turkey over a period of history after World War I when the Ottoman Empire killed, by some estimates, more than 1 million Armenians.[47]

[edit] David Chang & South Korea funders, 1995-98

Chang was a Korean or Chinese (his place of birth is a matter of dispute) businessman based in New Jersey. He donated lavishly to various Democratic candidates and organizations, and was repeatedly a guest at the Clinton White House. [48]

Between 1995-96, Change orchestrated approximately $54,000 worth of illegal campaign contributions. He also hired Terry McAuliffe to assist him in buying a bank in South Korea in mid-1998.

The sources of Chang's wealth have never been established, and are a matter of some suspicion, given that between 1996-98 he donated funds to politicians and experienced gambling losses well in excess of his reported income. Also, his various companies boasted of large business deals, but many projects never seemed to get beyond the planning stage.[49]

A businessman named Robert Lee, 49, pleaded guilty to violating federal elections laws by giving the Democratic National Committee $150,000 drawn from a South Korean corporation. Lee was the 16th person charged in a Justice Department investigation of campaign financing in the 1996 election. [50]

[edit] White House coffees, 1995-96

During McAuliffe's tenure as chairman of the Democratic National Committee, he used his access to the White House and close ties with the Clintons to generate funds for the DNC in a number of unorthodox ways. He raised at least $27 million by arranging at least 103 coffees with the Clintons on behalf of large donors. [51] The Justice Department later closed its investigation without bringing charges.

[edit] Lincoln bedroom sleepovers, 1995-96

McAuliffe wrote the famous memo to rent out the Lincoln Bedroom in the White House to major campaign givers. At least 938 people paid between $25–$2000 in the form of donations to the DNC for the privilege of spending the night in the Lincoln Bedroom.[52][53][54][55][56]

There was no "Lincoln Bedroom" memo.

[edit] Teamsters-DNC deal, 1996

McAuliffe worked to find wealthy Democratic donors to supply funds for the election campaign of Ron Carey for Teamsters President. In return, Carey agreed to direct Teamster donations to the Unity election fund. Unity was a joint fund-raising effort by the Clinton-Gore campaign and the campaign committees for the House and Senate Democrats.[57]

[edit] Global Crossing, 1997-99

In 1997, McAuliffe contracted to work as a consultant for Gary Winnick's Pacific Capital Group. Winnick, then-CEO of Global Crossing, terminated the contract after one year; McAuliffe had produced "no deals".

While working out of Winnick's pacific offices, In March 1997, McAuliffe made an angel investment of $100,000 in a company known then as Atlantic Crossing. "Like many investors in the late 90s, I was on the lookout for investments related to the Internet," McAuliffe said. By August 1999, the company had changed its name to Global Crossing and went public. McAuliffe later sold a portion of the investment.[58]

Also in 1999, McAuliffe claims to have arranged a golf outing for Gary Winnick and then-President Bill Clinton. According to McAuliffe, Winnick pledged $1,000,000 to Clinton's Library sometime during the round.

1999 was also the year that Winnick's Global Crossing, at McAuliffe's behest, invested $40,000,000 in Telergy, the telecommunications company that retained McAuliffe as a member of its board of directors. Telergy paid McAuliffe a $1.2 million commission for his efforts. [59]

In mid-January 2002, the DNC criticized President George W. Bush and the Republican party for their ties to Enron culminating with McAuliffe attacking Bush on this issue during a January 20, 2002 appearance on Meet the Press.[60] Starting on January 28, 2002, McAuliffe was criticized by political commentators including Matt Drudge,[58] Frank Rich,[61] Rick Perlstein[62], William Safire[63], and Arianna Huffington[64] for his investments in Global Crossing, which filed for bankruptcy in 2002.[65] One New York Times reporter categorized the accusations against Global Crossing as "many of the same accusations that have made Enron into one of the largest corporate scandals in history."[66] McAuliffe played no management role in Global Crossing[58] and had no ties to Enron. Howard Kurtz of CNN reported that McAuliffe was free of any wrongdoing, having sold his shares years before there was "any hint of trouble with the company."[67] On July 20, 2002, Marc Racicot, the chairman of the Republican National Committee told Fox News reporter Rita Cosby, "I haven't seen anything that was done that was wrong by Terry McAuliffe."[68] On January 29, 2000, McAuliffe discussed the issue on the Fox News television program Hannity & Colmes where he claimed that former President George H.W. Bush gave a speech in Japan praising Global Crossing in exchange for the right to purchase $80,000 of stock at a reduced price of 34 cents per share.[69]

[edit] Herman v. Moore, 1999-2001

In 1999, the U.S. Department of Labor sued Jack Moore, pension fund manager for the International Brotherhood of Electrical Workers, on the basis of several deals made with McAuliffe. In one deal, McAuliffe and the pension fund partnered to buy commercial property in Florida, with Terry McAuliffe investing $100 while the pension fund put up $39 million. McAuliffe received a 50% interest in the partnership and emerged with $2.45 million from his original $100 investment. The lawsuit was called Herman v. Moore, with Alexis Herman, the Secretary of Labor, as the plaintiff. In October 2001, Moore and another union official agreed to pay six-figure penalties for their roles in the deals and the union agreed to reimburse the pension fund. McAuliffe was not charged with wrongdoing. [70]

[edit] Book

On January 23, 2007, his book, What A Party! My Life Among Democrats: Presidents, Candidates, Donors, Activists, Alligators, and Other Wild Animals ISBN 9780312357870, was released and debuted at #5 on the New York Times Bestseller list and #1 on the Washington Post's list. McAuliffe called himself a "hustler" in his autobiography. [71]

Rick Perlstein, in his review of McAuliffe's memoir, What a Party!, wrote that McAuliffe's involvement with Global Crossing compromised McAuliffe's ability to attack Republican ties to the Enron scandal during the 2002 midterm congressional elections.[72]

[edit] References

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  2. ^ Dowd, Maureen (1987-07-07). "Money for politics: One man's relentless pursuit". The New York Times. http://query.nytimes.com/gst/fullpage.html?res=9B0DE0D61E38F934A35754C0A961948260&sec=&spon=&pagewanted=all. Retrieved on 2009-01-04. 
  3. ^ "Terry McAuliffe Biography". Leading Authorities, Inc.. http://www.leadingauthorities.com/23827/McAuliffe_Terry_detail.htm. Retrieved on 2009-01-04. 
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  38. ^ [Complaint, “Resolution Trust Corporation v. Catalina Homes, Ltd.,” Ninth Judicial Circuit Court for Orange County, Case No. CI91-10491, Filed December 3, 1991]
  39. ^ [Complaint, “Gargan v. Coelho,” District of Columbia Superior Court, Case No. 95CA006604, Filed August 18, 1995]
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