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It's Sunday night and I'm deciding whether I should start my own blog.For four years, I have been collecting information about fraud in the government. I wrote about it in a couple of online forums that are now defunct. For starters, Pataki is and always has been a figurehead for Charlie Gargano and Al D'Amato. What I don't understand is why people like Elliot Spitzer remain silent.I know firsthand that Gargano has been on a first name basis with Neil Migliore of the Lucchese family since the late 1970s. Gargano was vice president of J. D. Posillico construction company and Migliore et al controlled the cement and carting business on Long Island among other endeavors. They both made fortunes from the $2 bilion Southwest Sewer District scandal which came to light in 1979.In the January 2005 issue of New York magazine, Jerry Capeci wrote that one member of law enforcement told him that Migliore is the "biggest influence on the street". Yet since Pataki took office, Migliore has kept his name out of Newsday.Gargano has a history of investing in sleazy small cap stocks which the NY Times reported. The New York Times, however, left out Intelli-Check and did not thoroughly cover the Eagle Building Technologies story.Gargano, through the Empire State Development Corporation, funded Intelli-Check before it went public in 2001 and then the ESDC bought 6.8% of the company which it still owns.Intelli-Check trades around $4 on the American exchange but was as high as $15. The company has lost $18m on $2.4m in sales yet it received $5m in a private placement recently. I'm certain that Intelli-Check exists to launder money legitimately but I can't prove it. Two of the major initial investors were executives with Allou, a bankrupt publicly traded company. The board of directors are under investigation for fraud, arson and bribery. Another investor was Joseph Perri. Perri who invested $2m in Netcruise.com and was last in the NY Times for his conviction for insurance fraud during the 1979 blackout.I think that Marvin Liebowitz, another insider, owns Mailco, a mass mailing company. He made more than $2m selling Intelli-Check stock. In 2000, who would have benefitted from free mass mailing?Another insider was Steve Ritondo who was named vice president of Borgata, an Atlantic City casino, in 2002.I think but I'm not sure that one of Intelli-Check's "founders", Kevin Messina, is connected to the Posillico family. Messina has made about $6m selling Intelli-Check stock.Eagle Building Technologies started life in 1999 as a company that had a building method that would revolutionize the construction industry. The president, Anthony M. D'Amato, was sentenced in 2003 to nine years in prison for fraud and other charges connected to Eagle. James "Carey" Parrish, president of Andros Development International, was a partner in the fraud with D'Amato, and he was sentenced to four years. Gargano was the chairman of the Andros advisory board. How did Gargano, Meyer Berman and Sam Gejdenson all end up associated with Eagle Building Technologies? Gargano joined the board of directors in April 2001. Earlier that year, Sam Gejdenson, former Democratic congressman from Connecticut, became a vice president. Gejdenson's district included Foxwoods Casino. Meyer Berman, a wealthy investor, was a two-time visitor to the Clinton White House. Berman, initally an Eagle investor and ultimately chairman of the board, was Eagle's landlord in Boca Raton.Berman was also chairman of the board and an investor in Biosterile, a Indiana company started by former members of the military. Albert Reichman of Olympia & York was on the board along with other prominent names. Berman and Paul Reichman were investors in IDT, a telecommunications company.Biosterile claimed to have Russian scientists in its employ in Russia and had received State Department funding under a Russian foreign aid program. It marketed sterilizing equipment and cargo scanning machines.Within weeks after 9/11 and then the anthrax attacks, Biosterile and Eagle teamed up to market Eagle as a company in the vanguard of the fight against terrorism. Eagle's stock shot up from $3 to $10. It made a presentation to Congress and was looking for a $50m grant before someone blew the whistle that the machines did not work.A few months later, the news came out that D'Amato had manufactured all of Eagle's financial information. Then he was rounded up in the FBI's "Bermuda Shorts" sting operation. But everyone else associated with Eagle claimed to know nothing. D'Amato and Eagle combined had donated more than $245k to Republican causes. A good chunk of it went to Pataki. D'Amato attended the Governor's Ball held in DC during the Bush inauguration.There was no public disclosure about whether Gargano, who said he resigned from Eagle's board in October 2001, ever cashed in his stock options which would have been worth $600k when he resigned. One Eagle inside trader was Robert Molinari, who I think is Guy's older brother. He sold $225,000 of Eagle stock.Gargano, the vice chairman of the Port Authority, said in an interview that he heard about the first plane hitting the WTC as he walked out of his NYC apartment. He then went to his office on Third Avenue and waited for Pataki who arrived at about 10:30. This post is sort of what I want to write about.
I shouldn't post at 1:30 in the morning. Gargano joined the Eagle board in April or June 2000, not April 2001. He would have had $1m in stock options in the fall of 2001.Anthony M. D'Amato and Eagle contributed a total of $230k to Republicans, not $245k. Of that amount, $71k was contributed to the Bush campaign, making Eagle one of the top ten donors in the construction industry. The $71k is no longer listed. I asssume that the contribution was returned.In December 9, 2002 Roll Call story, Amy Keller wrote a story about Eagle Building and the Democrats. Congressman Wexler of Florida loaned Eagle $20k. Eagle held a fundraiser for Wexler which raised $25k. She also assumed that Congressman Gary Ackerman of NY invested in Eagle in June 2001 because LaGuardia Airport is in his district. Ms. Keller never mentioned Eagle's far bigger contributions to the Republicans. I wrote to her about that and shortly thereafter, the $71k Eagle contribution was removed from the Open Secrets website. If anyone has any doubt that organized crime is involved here, check Sealant Solutions on the SEC website. Gargano was a shareholder in that company. In February 2002, Sealant's president, James "Cary" Parrish of Andros Development sold $250,000 to IFG Goldstar Cement. That was Sealant's only transaction that year. Buck Showalter was the recipient of the money. The SEC has a longstanding case against Showalter. According to SEC records, he spent time in Lebanon at one point and then spent six months in the Ukraine during 2001.I am not writing about nice people.
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I am a New York City resident in my forties, an investment professional, and a conservative. I have an MBA from Columbia University.