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Ronnie Earle Issues New Subpoena To "A Close Friend of The Falwell Family"

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kpete Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Mar-08-06 09:28 PM
Original message
Ronnie Earle Issues New Subpoena To "A Close Friend of The Falwell Family"
Ronnie Earle Heads Back into the Past
By Paul Kiel - March 8, 2006, 6:51 PM

Jeez, if Travis County DA Ronnie Earle insists on dredging up every bit of muck on Tom DeLay, his investigation will never end.

His investigation has just issued a new subpoena to Carolyn Malenick. Who's Carolyn Malenick? A "close friend of the Falwell family," for one. But this excerpt from "The Hammer" by Lou Dubose and Jan Reid explains why she's coming up now.

Hold on, we're going ten years back, to 1996, when a man named Brian Babin was running for East Texas' 2nd Congressional District's seat. The other key player here is Peter Cloeren, a Texas businessman who was supporting Babin's campaign. As Cloeren told it to investigators on the House Committee on Government Reform in 1998, he found himself next to Tom DeLay at a private lunch after a Babin campaign event, and DeLay turned to him and...


"Congressman DeLay turned to me and told me that Mr. Babin's campaign needed more money because Mr. Babin was being out-spent by his Democratic opponent.



"Congressman DeLay told me that the Democratic candidate was receiving a lot of money from liberal interest groups like labor unions and trial lawyers. I told Congressman DeLay that I could not help Mr. Babin raise more money because I had run out of vehicles. Congressman DeLay specifically told me that it would not be a problem for him to find, in his words, "additional vehicles," since he knew some organizations and campaigns which could serve as these vehicles. Mr. DeLay turned to his aide, Mr. Robert Mills and stated that money could be funneled to the Babin campaign through both Triad a corporation that ran two nonprofit foundations and other congressional campaigns. Congressman DeLay then specifically told me that Mr. Mills would follow up with me on the details of how to funnel additional monies to Mr. Babin's campaign."


Malenick was Triad's sole proprietor, so she was no doubt privy to DeLay's "funneling." Named on the subpoena is Triad, Triad Management, Inc. and then some of the other organizations involved in Babin's corrupt, but ultimately losing, effort.

Oh, Ronnie, will the digging ever end?
http://www.tpmmuckraker.com/archives/000066.php
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stepnw1f Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Mar-08-06 09:33 PM
Response to Original message
1. Oh Yessssss... this makes Me Smile!
He's expanding this investigation while Fitz does his job. It's a beautiful thing.... let's not forget Abramoff too...lol.
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FreedomAngel82 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 01:24 PM
Response to Reply #1
21. And watch it all explode at the same time
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Kingshakabobo Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Mar-08-06 09:35 PM
Response to Original message
2. I'm sure he can dig all the way to China and not get to the bottom..
of Delay's corruption.
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mom cat Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Mar-08-06 09:52 PM
Response to Original message
3. St. Ronnie the Digger.
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Wilms Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Mar-08-06 10:39 PM
Response to Original message
4. K&R n/t
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Lone_Star_Dem Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Mar-08-06 10:47 PM
Response to Original message
5. Keep the pressure up Ronnie
Build a rock solid case that weasel can't squirm out of. :patriot:
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IDemo Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Mar-08-06 10:55 PM
Response to Original message
6. Ethics still matter in America,
despite the furious efforts of DeLay, Abramoff, Cheney, and ShrubCo to deny it.
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texpatriot2004 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 12:02 AM
Response to Original message
7. Thank you Mr. Earle for your service in search of the truth and
in pursuit of the law.
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ClayZ Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 04:30 AM
Response to Original message
8. Keep on Digging Mr. Ronnie Earle!
:kick:

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frankly_fedup2 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 09:04 AM
Response to Reply #8
12. Yes please find everything you can on this arrogant man and dig, dig,
dig a hole big enough to drop him in. I haven't seen that big, arrogant smile on his ugly puss for a while. Could it be that he is concerned since his friend has been sent to jail for 8 years? We can only dream.
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Trevelyan Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 07:26 AM
Response to Original message
9. Speaking of Abramoff: Well I can't find the link but the PDF file for
Vanity Fair's next issue is online and Abramoff is said to name Repuke names.
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maddezmom Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 07:29 AM
Response to Reply #9
10. here it is:
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mopinko Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 08:35 AM
Response to Original message
11. triad as in voting machines?? nt
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eomer Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 03:39 PM
Response to Reply #11
25. Seems to be a different Triad than the Ohio-based election systems Triad
Edited on Thu Mar-09-06 03:41 PM by eomer
Election systems Triad is Triad GSI:
http://www.triadgsi.com/

Campaign contribution channeling Triad is Triad Management Services. They don't seem to have a website. I guess if your organizational mission is illegal campaign contributions then your web presence consists more of FEC judgments against you and that sort of thing:
http://www.fec.gov/law/litigation/final_judgment_and_order_02CV1237.pdf

I don't know if there is some behind the scenes connection between the two Triads but we can at least say that they are not one and the same company.


Edit: typos
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Junkdrawer Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 04:31 PM
Response to Reply #25
26. Is "Triad" Fundy code for "Trinity"? Hmmmmm.....
:think:
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AntiFascist Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 06:15 PM
Response to Reply #25
28. Triad information
Here is a link to Triad MSI that Malenick may be involved with:

http://www.t-msi.com/

Malenick is also on the Council of National Policy (CNP).

It is rumored that Malenick owned part of Triad GSI, but since it is a private company, records are hard to come by. There are also rumors of connections with Adnan Khashoggi, whose name is on a another Triad company, Triad Systems, and also Koch Oil involvement.

Here's more info on Koch Oil:

http://www.commondreams.org/cgi-bin/print.cgi?file=/news2005/1115-05.htm


"Koch is a huge company -- bigger than Microsoft, but few people have heard of it. It is very politically active, in campaign contributions, lobbying and, probably most importantly, founding and funding right-leaning libertarian think tanks"

<snip>

"Although it is both a top campaign contributor and spends millions on direct lobbying, Koch's chief political influence tool is a web of interconnected, right-wing think tanks and advocacy groups funded by foundations controlled and supported by the two Koch brothers."

"Koch has had plenty of run-ins with government regulators and other legal problems in recent years. Through it all, the company has shown a remarkable knack for getting criminal charges dropped and huge potential penalties knocked down."


More background on Khashoggi and other "Triad" front companies:


One of the most important era Saudi Arabia, as a young country, has lived was in the late sixties and early seventies when commissions, kickbacks, and corruption became part of the landscape of that society. The first Ministry to apply corruption to its practice was the Ministry of Defense under the leadership of Sultan bin Abdul Aziz . And no one was more instrumental in helping to bring the business to Saudi Arabia from the West than the famous Adnan Khashoggi. Without any doubt, Adnan is the father of modern Saudi Arabia with one twist. He was driven by greed and money rather than by unselfish ideals. Without him, the system would have been different and the country would have been different. He single handedly brought western business and more specifically the arms business to Saudi Arabia. It all started in 1969 when Sultan, ignorant about the way to do business but hungry for corruption and money, asked Adnan, then a young,
intelligent, ambitious young man to help him buy some arms. This modest beginning ended up being a long term relationship that culminated in the purchase of highly sophisticated arms, jet fighters, tanks, and navy ships. The majority of which came from the United States. The Northrop Scandal which happened in the early 70's represented a good example of how the system worked and how Congress interfered to pass the Foreign Corrupt Act which governs today's foreign business. The sums of money are miniscule if measured in today's Dollars, but back then, a millionaire earned the cover pages of major magazines. Today's millionaires are a dime a dozen.

THE NORTHROP SCANDAL

The reverberations of Saudi Arabia's procurement of over 80 Northrop F-SE/F's are still being felt today, even as the kingdom seeks to replace the top heavy aircraft with newer, sleeker trainer-fighter models. Saudi Arabia also bought F-SNB's from Northrop in 1971, the first phase of the contract, a few years before they bought the F-5EIF's. The deal was worth $4.2 billion.

The F-5's still have to be maintained until they are replaced. Three years ago, the Minister of Defense, Prince Sultan bin Abdul Aziz, pressured Northrop to award the maintenance contract to the Al Salam Aircraft Company, which was described as "poorly managed." (Mednews - Middle East Defense News, April 19, 1993). The joint venture company was established to handle the overhaul of both Royal Saudi Air Force and Saudia, the commercial carrier, aircraft. Al Salam's facilities at the Riyadh airport are inadequate because its overhaul hangars are not connected to the runway, rendering them inaccessible to planes, and because the hangars do not have an adequate power supply for the maintenance and repair work Al Salam was set up to do.

COST OF DOING BUSINESS

The public first received wind of Northrop's bribery payments to Saudi
officials through a 1975 Securities and Exchange Commission auditors report. Northrop had already lost all credibility as an honest business. It's illegal contributions to then President Nixon's reelection campaign sparked public outrage in the wake of the Watergate affair. Here are the facts of the Northrop scandal as reported by the SEC In March 1972, at Saudi middleman Adnan Khashoggi's alleged request, Northrop paid him $250,000 above his usual fee. This money was to go to General Hashim M. Hashim, head of the Saudi air force, who would "make difficulties" for the firm otherwise, or, as Northrop chair, Thomas V. Jones testified, "mention was made of a problem with a general." Originally, the Northrop deal provided for a commission to be paid directly to the generals or the sale of 20 F-SB two-seat trainers and 30 F-SE single-seaters costing $35 million and $105 million, respectively. When the contract became a
government-to-government contract through the U.S. Foreign Military Sales program, the general's commission provision was deleted. Khashoggi allegedly told Northrop that he had given the money to the general.

The following year Khashoggi was back for more. Hashim's m's successor General Asad Zuhair, was asking for $150,000 Northrop tried to get out of paying. Its resistance angered the general who raised his demand to $200,000. Northrop paid Triad that amount in August 1973 after acquiring Khashoggi's firm apply the $450,000 in bribes against future commissions and on the condition that Triad secure the third-phase contract which awarded $75 million for maintenance, spare parts, and training. Northrop got the contract.

The report also stated the Northrop paid bribes to a Saudi prince. The report did not identify him but news media reported Prince Khaled bin Abdullah received "commissions" from the contractor. Khaled allegedly threatened "If I get nothing, then I will make sure that Adnan gets nothing." According to the SEC report, Khaled's agents approached Northrop to pay commissions to the prince, who as a registered agent in Saudi Arabia was entitled to receive them. Khaled made over $500,000 between 1971 and 1973 for "unspecified services." The money was paid to his front company, Cantona Financial Establishment.

The publicity embarrassed the Saudi royal family who, up until that time, had been able to keep their receipt of illegal payments secret. Having commissions paid to the Saudi government (which is the royal family) as an official part of the contract was standard practice at that time. They were calculated as a percentage of the contract value and were to be paid to the government. However, the Northrop deal occurred in the wake of the Watergate hearings when public tolerance for political shadiness was at an all-time low. Publicity over the bribes led to a Securities and Exchange Commission investigation of Northrop.

As part of the settlement with the SEC, Northrop signed a consent order which includes a pledge not to conceal bribe payments from its shareholders.

PUBLICITY SHY

In the 1960's and 1970's, Adnan Khashoggi was virtually the only contact arms dealers had with the House of Saud. By 1970, he was the exclusive agent on 80%~of Saudi arms deals. The cost of his commissions were passed on to the Saudi government. Saudi citizens paid to make Khashoggi one of the richest men in the world.

In a biography about Khashoggi, author Ronald Kessler writes that the middleman "delicately balanced the aspirations of one member against another, striving to make them all happy. He always took care to instinct Northrop not to send him anything in Saudi Arabia referring to his commissions. If the size of his fees got out, it would disrupt his role as ballast within the family." Northrop paid Khashoggi's fees to his various Swiss bank accounts. The SEC never investigated those accounts, through which he allegedly funneled money to Saudi princes.

Khashoggi, through Triad Financial Establishment, a part of Triad America Corporation which he jointly owns with his two brothers, was the middleman charged with securing contracts with Prince Sultan bin Abdul Aziz's Ministry of Defense. Triad America Corporation is the U.S. affiliate of Triad Holding Company, incorporated in Luxembourg, a country with very lax business-practice watchdog laws, and based in Beirut. The only way anyone could do business with Saudi Arabia was through an agent, so Northrop employed Khashoggi as its exclusive agent in deals with Saudi Arabia. His commissions were a line item in the contract. By 1975, Northrop had paid Triad $8.9 million. Northrop stopped paying the commissions after the Saudi government passed a law prohibiting such payments and after the U.S. Department of Defense told Saudi officials about the payments. Saudi officials reportedly told Northrop they did not approve of payments to a middleman and the Pentagon ordered Northrop not to pay the commissions. Northrop tried to break the contract, but could not get Khashoggi consent to do so. When Northrop ceased payments, Khashoggi took the dispute to arbitration, in 1979, as delineated in the contract. He claimed
Northrop owed him $153 million. The arbitrator ruled that Northrop must pay him
$31.7 million of the money it had received from Saudi Arabia in payment for the aircraft. Khashoggi made a total of $184 million from the deal. In fact, Khashoggi has used his ties to Prince Sultan and King Fahd to secure a number of deals which increased his wealth to around $4 billion in the late 1970's. Defense industry watchers and Saudi experts do not believe the Khashoggi kept all of the Northrop commissions to himself.

SAUDI REACTION

The Saudi royal family cringed at the SEC probe and the resultant unfavorable press and its Council of Ministers passed a decision supposedly outlawing the kind of commission deal between Northrop and Triad. However, the decision, which has the force of law, is very weak and vague. Key terms such as "agent," "broker," "commission," "arms," and "armament" are not defined. Without such definitions, it is impossible to know just what the law is prohibiting. Also, there are no penalties for breach of the law. The only "punitive" measure provides that the Saudi government can deduct the amount of the commission from the price of the contract. As the government was paying the commissions, and since the decision only applies to commissions to be paid to the government, the law just eliminates an obvious paper trail showing that the royal family was stealing money from the government treasury.

After the ministers published their decision, the U.S. Air Force directed American defense contractors to stop including commissions as part of the cost of the contract, but it did not prohibit them from having commission payments as part of the deal. The Department of Defense's policy is if it is not in thewritten part of the contract, it is not their concern.

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FINNEGAN, Defense News Staff Writer, DUBAI, United Arab Emirates
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Pg. 12, 166 words, Saudi Firm Gains Series Of F-15SFighter Awards
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SHIPYARD BIDDER DENIES IRAQ LINK, Chris Barrie
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Friedman catches up with James Baker and colleagues at the Carlyle
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ARE RELYING MORE ON EX-GOVERNMENT OFFICIALS TO PITCH THEIR ; WARES - ATASK
THAT MAY GET TOUGHER UNDER BILL CLINTON., By Peter H. Stone, Special To The
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CASE, By WILLIAM TUOHY, Times Staff Writer, BERN, Switzerland
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Staff Writer, NATIONAL NEWS
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REAGAN-KHASHOGGI
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Information Bank Abstracts, NEW YORK TIMES, September 29, 1975,
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Tuesday, Page 2, Column 3, 79 words, BY KENNETH HBACON
Aviation Week and Space Technology, September 8, 1975, MANAGEMENT; Pg.
19, 650 words, Saudis Delay Pact With Northrop,Washington
Information Bank Abstracts, NEW YORK TIMES, September 3, 1975,
Wednesday Page 56, Column 4, 134 words
Aviation Week and Space Technology, August 11, 1975, MANAGEMENT; Pg.
21, 1042 words, Foreign Payouts Defended as Necessary, By William A.
Shumann, Washington
U.S. News & World Report, August 4, 1975, FINANCE; Pg. 72, 1610 words,
HEAT GROWS ON U.S. BUSINESS FOR DUBIOUSDEALINGS ABROAD
Facts on File World News Digest, July 19, 1975, U.S. AFFAIRS;
Business, Pg. 515 B2, 149 words, Iran, Saudi Arabia act on Northropdisclosures
Information Bank Abstracts, NEW YORK TIMES, July 17, 1975, Thursday,
Page 37, Column 7, 211 words, BY CLARE M RECKERT
Information Bank Abstracts, WALL STREET JOURNAL, July 17, 1975,
Thursday Page 42, Column 2, 113 words
Information Bank Abstracts, NEW YORK TIMES, July 6, 1975, Sunday,
Section 3; Page 1, Column 1, 342 words, BY MICHAEL CJENSEN
Facts on File World News Digest, June 28, 1975, U.S. AFFAIRS;
Business, Pg. 454 A3, 2673 words, Northrop admits bribes
Aviation Week and Space Technology, June 23, 1975, MANAGEMENT; Pg. 19,
327 words, SEC to Reexamine Forms Filed By 25 TopDefense Contractors,
Washington
Newsweek, June 23, 1975, UNITED STATES EDITION, BUSINESS AND FINANCE;
Pg. 70, 681 words, INVESTIGATIONS: CleaningHouse, CLEM MORGELLO with RICH
THOMAS in Washington and bureau reports
Information Bank Abstracts, NEW YORK TIMES, June 22, 1975, Sunday,
Page 1, Column 3, 212 words, BY ROBERT M SMITH
Aviation Week and Space Technology, June 16, 1975, MANAGEMENT; Pg. 20,
1310 words, Tighter Foreign Sales Controls Studied, By William A. Shumann,
Washington
Newsweek, June 16, 1975, UNITED STATES EDITION, BUSINESS; Pg. 65, 1237
words, 'All the Right People', LYNN LANGWAY withRICH THOMAS in Washington and bureau reports
Information Bank Abstracts, NEW YORK TIMES, June 10, 1975, Tuesday,
Page 55, Column 5, 354 words, BY ROBERT M SMITH
Information Bank Abstracts, NEW YORK TIMES, June 7, 1975, Saturday,
Page 1, Column 7, 390 words, BY ROBERT M SMITH
Information Bank Abstracts, NEW YORK TIMES, June 6, 1975, Friday, Page
41, Column 8, 204 words
Information Bank Abstracts, NEW YORK TIMES, June 6, 1975, Friday, Page
1, Column 3, 289 words, BY MICHAEL C JENSEN
Information Bank Abstracts, NEW YORK TIMES, June 5, 1975, Thursday,
Page 1, Column 6, 190 words, BY MICHAEL C JENSEN
Information Bank Abstracts, NEW YORK TIMES, May 9, 1975, Friday, Page
45, Column 1, 114 words
Information Bank Abstracts, NEW YORK TIMES, May 5, 1975, Monday, Page
1, Column 1, 382 words, BY MICHAEL C JENSEN
Information Bank Abstracts, NEW YORK TIMES, January 10, 1975, Friday,
Page 1, Column 5, 210 words, BY JOHN W FINNEY"



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Bethany Rockafella Donating Member (916 posts) Send PM | Profile | Ignore Thu Mar-09-06 09:46 AM
Response to Original message
13. All the corruption.
Yet the hammer still won on Tuesday. I don't get it.
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Mithras61 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 10:19 AM
Response to Reply #13
15. DeLay won the REPUBLICAN primary...
Primaries are notorious for the level of true-blue voters - in this case Republican voters - and they will reflect the CORE VALUES of the party. Since DeLay won in his district, that means that the core values of the 'pukes in his district are "win at any cost," which is really no great surprise.

The interesting bits don't come out in the newspapers and on CNN, though. You have to look at places like the Sec. of State for TX to get those... for example, DeLay got 1/3 fewer votes in the core county of his district than Rick "Good Hair" Perry did (~10K vs. ~18K). The fact that unknown (and virtually unfunded) 'pukes didn't beat him in his home district is no surprise, especially considering the relatively late start that they got in the race.

The REAL measure will be in November, since he now faces off against Nick Lampson, who is a former Congressman, well funded and reasonably well known. It is also interesting that about 1/3 of the voters in DeLay's district have said that they will vote Dem against DeLay, regardless of who the Dem is, and that DeLay was loosing to an unnamed Dem by 22 points in a Houston Chronicle poll in January.
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0007 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 09:47 AM
Response to Original message
14. Nail that son of a bitch to the cross anyway ya can,
dig dig dig Ronnie Earle
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cain_7777 Donating Member (417 posts) Send PM | Profile | Ignore Thu Mar-09-06 10:20 AM
Response to Original message
16. Texans still voted about 62% for DeLay
still the majority of these Texan thoughtless loyalist pricks still back DeLay despite all the corruption. I hope he is reelected only to be convicted on multiple counts shortly after. Arrogant bastard, keep smilin' all the way to the slammer, keep smiling while being made somebody's bitch, and keep smiling while getting shivved. Smilin' Bastard! Unfortunately he'll only get a slap on the wrist but I can keep dreaming.
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FreedomAngel82 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 01:26 PM
Response to Reply #16
22. Correction
It was just a primary.
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cain_7777 Donating Member (417 posts) Send PM | Profile | Ignore Thu Mar-09-06 02:14 PM
Response to Reply #22
24. Just a Primary, but still, come on, the majority.
I know it's just a primary but for the people who do care enough to vote its still disgusting.
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Norquist Nemesis Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 01:26 PM
Response to Reply #16
23. Was that Texans or Texas Republicans in Delay's district?
Yesterday, I saw somewhere that 10% of the registered voters came out to vote. (Didn't have time to verify the stats on that and then forgot about it.) If that's the case, the 62% means nothing.
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trudyco Donating Member (975 posts) Send PM | Profile | Ignore Thu Mar-09-06 10:42 AM
Response to Original message
17. Sooooo.... IS this related to Triad vote counting co? - nt
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AlCzervik Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 10:44 AM
Response to Original message
18. pdf of a lawsuit against her thay she lost.
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eppur_se_muova Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 01:17 PM
Response to Original message
19. Keep digging! There's more tainted gold to be found. nt
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FreedomAngel82 Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Mar-09-06 01:23 PM
Response to Original message
20. I'm glad he's getting all the crooks
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Brooklyn Michael Donating Member (403 posts) Send PM | Profile | Ignore Thu Mar-09-06 04:34 PM
Response to Original message
27. Must...resist....urge....to compare....to Starr...
Uuuuhhhhnnnn....the flashbacks, man....prosecutor...investigating....won't stop....no matter how off from original investigation he gets....


Ahhhh, who am I kidding? Get 'em, Ronnie. Fuck 'em in the ass.
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