Payments to Republican fundraiser under scrutiny (Carlyle Group Subpoena)

[truthpusher]

http://www.belleville.com/mld/belleville/news/12341191.htm

Posted on Tue, Aug. 09, 2005
-------------------------
Investment firm's payments to Republican fundraiser under scrutiny
-------------------------
MIKE ROBINSON
Associated Press
-------------------------
CHICAGO - Federal prosecutors investigating corruption at a state pension fund have subpoenaed records concerning $4.5 million in fees a Washington-based investment firm is paying the new treasurer of the Republican National Committee, government sources confirmed Tuesday.

The subpoena calls for documents related to the fund, the Carlyle Group and Robert Kjellander, said sources familiar with the investigation who spoke only on condition of anonymity, saying prosecutors want details of the probe kept secret.

Kjellander, a Springfield-based lobbyist who headed President Bush's re-election campaign in three states, was named the RNC's treasurer over the weekend.

Illinois Teachers Retirement System officials expressed concern about the amount of finders fees Carlyle offered Kjellander for helping to land business with the pension fund - $3.1 million paid and $1.4 million due.

"I believe that we were all taken aback when we learned of the size of his compensation for services to the Carlyle Group," said Jon Bauman, executive director of the pension fund.

(snip)

complete story: http://www.belleville.com/mld/belleville/news/12341191.htm

[napi21]

1. There is a quote in that article that states:

"The average return on these funds is 45 percent per year," he said. "You're not going to get that out of an S&P fund. The pensioners and board are doing very well investing in Carlyle."

This of course is the response that the $4.5 million was excessive.

Now, I know there are people who make $$ in the stock market, and of course, there are those who don't, but I NEVER HEARD OF PEOPLE MAKING 45% AVERAGE per YEAR!!!!

Either that statement was minunderstood, the guy is lying, or there's something VERY WRONG there!!!

[bejammin075]

21. 45% a year not outlandish...

for an individual investor, but for a fund, it's hard to make that much when you have so much money to move around. As an individual invester, I'd be disappointed with less than 50% a year, but what I do is risky and not recommended. If your timing is good with stocks, you can make a lot.

During one year, I used a regular, taxable account to try an experimenal investment system that I devised, just for shits and giggles. Basically, I traded the same stock over and over again (about 40 times during the 1 year), and made 230% profit, even after paying the equivalent of 100% of the original capitol in transaction fees. If I didn't have to pay fees (or if the money was large enough that the fees were relatively much smaller) I would have made well over 300% profit, as in doubling the money about every 6 months. After each trade, I reinvested all of the money in the next trade. At the end of the year, I made $$ on 90% of the trades, lost on 5%, and tied on 5%. In my case, I think I have a gift or instinct for timing stocks, and a psycho risk tolerance. Unfortunately for me though, I don't care about $$$ that much anymore, and I don't have time to play stock market games. But do I attend to my retirement account just enough to get what most would consider some outstanding returns.

I have a friend who manages several hundred million for a hedge fund on Wall Street. Those funds are relatively unregulated, and for those who have at least $1 million to invest. They have computer programs analyse world markets for opportunities 24 hours a day. I'm not sure what his rate of return is, but it's a lot. Whether the market goes up or down or sideways, he's always making money for his clients. That's what many people don't realize. The rich fat cats aren't hurting when stocks go sideways or down.

[donkeyotay]

2. This reminds me of MDL in Ohio

They lost millions of Ohio's funds. The same basic group of people had previously been losing money for Pennsylvania. They deny any wrongdoing, and I don't think any charges have been brought, but think about it: Illinois is talking about $30 billion in teachers' pensions. That's a lot of money and it's going to attract sharks. Even if the fees are legal, they're outrageous, and the excuse is made, "but they're earning these great returns." Yeah, right. Until they're not. But also, what justifies reducing the return to the shareholders by paying these outrageous fees? What did this guy do to earn $5 million? This type of story keeps popping up, and previously pension returns were reduced from scandals like Enron and Worldcom. This money needs to be watched more closely.

[JDPriestly]

6. Right, it's invest and switch.

You get great returns at the beginning, so you invest more, and suddenly, "Ah, too bad. Economic downturn. Couldn't help it." The investor stands there with no control, having paid dearly for the privilege of investing in the scam. That happened to a friend of mine. Of course, people think it can't happen to such a big company. But, we've heard that before, haven't we?

[Eloriel]

3. Ooooh, I like it

High time to get SOMEone to scrutinize SOMEthing about the Carylele Group, which is a PRIVATE investment concern and therefore not under many laws at all -- certainly not SEC.

[electropop]

19. One scandal after another.

Eventually has to cause some real damage to the GOP.

[MetaTrope]

4. Hey Illinois, how about checking out Barrick Gold next?

You know you want to!

[mom cat]

5. THIS IS BIG!...nominated!

[KittyWampus]

7. unfortuntely this'll sink under the weight of cindy goes to crawford

:(

[mom cat]

8. Maybe not! We know how to multi-task.

[Karenina]

17. and KICK!!!

:kick:

[truthpusher]

12. I thought this was dead...but I see it has 9 Nominations already!!

You guys aren't sleeping!! I thought this was huge when I saw it earlier today...after I posted, it fell like a lead brick...there is enough room and people on DU to keep all of these stories afloat...Cindy, Rove, Iraq and now this.

[Solly Mack]

9. Ha!

[hedda_foil]

10. What Fitzgerald is doing in his free time?

Damn, that guy really is the reincarnation of Elliot Ness!

[BR_Parkway]

20. I thought Fitz too as soon as I saw the Chicago reference. No wonder

Shrub's gonna put his buddy in charge.

[Swamp Rat]

11. GET 'EM!!! GET THOSE FUCKING NAZIS!!!!

The Nazi Carlyle bastards are behind many of the Earth's problems. :mad:

[blue neen]

13. Swamp Rat, aren't these the s.o.b.'s who showed the anti-Kerry

show on their TV stations? It was an hour-long Swift Boat smear. Lousy bastards. I hope they rot in jail.

[Al-CIAda]

14. .

[NVMojo]

15. will they even get a slap on the hand for this????

[loudsue]

16. Carlyle is a bush family mafia group. This needs to be investigated.

I hope they expose these crooks!

:kick::kick::kick:

[drm604]

18. Kick

:kick: