Another Fortunate Bush Brother
Sun Aug 3 18:29:22 2003
December 5, 2002
Marvin Dips into the Security Pie
Another Fortunate Bush Brother
by MARGIE BURNS
The full effects of the 2001 so-called "USA Patriot Act" have not yet been felt, fortunately. But one of its first effects has been to benefit the president's brother, Marvin.
Marvin P. Bush, one of George W. Bush's three younger brothers, is co-founder and partner in Winston Partners, a private investment firm in Alexandria, Va. Winston Partners in turn is part of a larger venture capital entity called the Chatterjee Group, headed by venture capitalist Purnendu Chatterjee. (Venture capital firms provide money to start-up businesses and other companies, usually in return for equity and some managerial say in the company.)
Through this and other business relationships, this Bush sibling is positioned to do very well in high-tech activities as a result of provisions of the Patriot Act.
Securities and Exchange Commission filings show that the Chatterjee Group consists of Winston Partners, L.P.; and a half-dozen other entities with addresses in the Cayman Islands, the Netherlands Antilles, the Isle of Man and Delaware.
Bush's partner is Scott Andrews, with whom he went to school. Winston Partners has two branches, hedge funds and private equity funds, engaged in a variety of investments, including global "outsourcing" and offshore information technology.
H.R. 3162, called "The Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act" (or USA Patriot), was designed to prevent money laundering and requires banks to "know their customers."
Inevitably, many companies are aggressively marketing services to make businesses "Patriot Act"-compliant: that is, they sell computer systems to enable banks to argue successfully to Uncle Sam that they're not laundering money for terrorists. One of the most aggressive is Sybase Inc., which developed a "Sybase PATRIOT compliance Solution" months ago. Sybase, which said it wanted foreign banks as customers (it already had a deal with the People's Bank of China), landed Sumitomo Mitsui Bank in time for the October 2002 compliance deadline.
This is where Winston Partners comes in. The Chatterjee Group, including Winston Partners, owns 5.5 million shares in Sybase (Chatterjee businesses also have been paid thousands more shares in Sybase). SEC filings show that Winston Partners LP owns 1,036,075 shares in Sybase; Winston Partners LDC holds 1,317,825 shares; and Winston Partners LLC owns 1,221,837 shares. The shares owned by the subsidiaries are collectively managed in funds for Winston Partners by Pernendu Chatterjee. There is also a Chatterjee Charitable Foundation.
Business for Sybase is business for Bush, and the Patriot Act boosted business.
Not that the Patriot Act is Sybase's only federal conduit. The company is also a significant government contractor (especially nowadays), with contracts from the Agriculture Department, the Navy ($2.9 million in 2001), the Army ($1.8 million in 2001), the Defense Department ($5.3 million in 2001), Commerce, Treasury and the General Services Administration among others. The federal procurement database lists Sybase's total awards for 2001 as $14,754,000.
Sybase is only one of the companies with federal contracts from which Marvin Bush's firm derives financial benefit. Winston Partners' portfolio also includes Amsec Corp., which got Navy contracts worth $37,722,000 in 2001.
The potential for abuse here can hardly be overstated. A branch of the military or other government agency that risked funding cutbacks, for example, could throw up a buffer by awarding a contract benefiting the First Family. Why spend money on a lobbyist in the industry, when you might have one in the White House?
Now let's step back and look at the big picture. The president's brother is marketing to offshore customers (shipping out American jobs, be it noted). He is closely linked to entities marketing "outsourcing" and "global alternative investments" yet more aggressively. Companies associated with them are doing other high-end versions of the same. And some companies in which they have a stake are involved in the most sensitive technology outside nuclear weapons - being marketed simultaneously to the U.S. government, to foreign banks and to the states (Colorado, Texas, Oklahoma, New Jersey and New York also purchase from Sybase). This is "security"?
Nor is Marvin Bush the only family member in this picture. His brother Jeb Bush, Florida's governor, is also an investor in the Winston Capital Fund, managed by Marvin Bush's firm. And Indigo Systems Corp., another federal contractor ($2,629,000 in 2001 from Defense and NASA), is substantially backed by The Carlyle Group, the global finance company connected to George H.W. Bush.
As we used to say in Texas, son of a gun.
There is a crying need for oversight and accountability, but the need has yet to be met.
Margie Burns, a writer and teacher, lives in Cheverly, Maryland.
BUSH, MARVIN P.: Declared Holdings
‘Frauds-R-Us’The Bush Family Saga: - Stratesec/Securacom, ...
... WHO IS MARVIN P. BUSH? The public rarely sees Marvin P. Bush, brother
of President Bush II. Marvin P. Bush is the founder (1993) and ...
Marvin P. Bush, one of George W. Bush's three younger brothers, is co-founder and
partner in Winston Partners, a private investment firm in Alexandria, Va., a ...
‘Frauds-R-Us’The Bush Family Saga: - Stratesec/Securacom, ...
... submitted to the SEC. WHO IS MARVIN P. BUSH? The public rarely sees
Marvin P. Bush, brother of President Bush II. Marvin P. Bush is ...
Winston Partners : Hedged Equity : Team
Marvin P. Bush, (e-mail) Managing Partner/Co-Founder Mr. Bush manages
the Hedge Fund Group. Prior to founding Winston Partners, Mr ...
Marvin P. Bush, (e-mail)- firstname.lastname@example.org
Mr. Bush manages the Hedge Fund Group. Prior to founding Winston Partners, Mr. Bush spent twelve years in the investment business with Moseley, Hallgarten, Estabrook and Weeden, Inc., Shearson Lehman Brothers Inc., and John Stewart Darrell & Company. At Shearson, Mr. Bush’s focus was on the evaluation, selection and monitoring of investment managers for institutions and high-net worth individuals. Mr. Bush serves on the Board of Directors of Kerrco, and St. Stephen’s and St. Agnes School in Alexandria, Virginia, and is an Advisory Board Member of HCC Insurance Holdings. He is a past National Spokesman for the Crohn’s and Colitis Foundation of America and has served on the Board of Managers at the University of Virginia. Mr. Bush earned his B.A. from the University of Virginia.
WINSTON PARTNERS PRESS .....
Winston Partners and Global Strategies Establish Strategic Venture
1750 TYSONS BOULEVARD · SUITE 200 · MCLEAN, VIRGINIA 22102-4220 · (703) 905-9555 · FAX (703) 905-9019
Marvin P. Bush, Managing Partner
Winston Partners Group
Craig F. Magher, Managing Partner
For Immediate Release – August 7, 2001
Winston Partners and Global Strategies
Establish Strategic Venture
Winston Partners announced the formation of a strategic relationship with Global Strategies, LLC, an
alternative investment boutique based in Atlanta, GA. The primary focus of the relationship will be the
joint development of Winston’s absolute return fund-of-funds offerings. Global Strategies will also
actively source new hedge fund managers as well as market Winston’s existing fund-of-funds
The partners at both firms have known each other professionally and personally since the mid 1990’s.
Commenting on the new relationship, Marvin Bush, Winston’s Co-founder and Managing Partner said,
“the strategic venture allows us to broaden our fund-of-funds product line in the absolute return area
while maintaining the focus, discipline, and process oriented approach consistent with our current
funds. This relationship adds depth and experience to our research-focused hedged equity business.”
The two firms are joint investment advisors for the Winston Absolute Return Fund, Ltd., a
conservatively constructed fund-of-funds. The Fund was launched April 1, 2001 and the research
effort for this product is led by Ted Werthman.
About Winston Partners - Winston Partners is a private investment firm based in McLean, Virginia.
Founded by Marvin Bush and Scott Andrews in 1993, Winston has over $450 million under
management across two complementary business segments: hedged equity and private equity.
Winston’s hedged equity group is a family of multi-manager hedge fund strategies with specifically
tailored investment objectives. Winston’s private equity group invests in a range of industries
including information technology, telecommunications, outsourced business services, manufacturing
and direct marketing businesses.
About Global Strategies - Global Strategies was formed in 1998 by Craig Magher and William
Huger. The firm has been actively engaged in identifying emerging hedge fund talent and making
capital introductions. The firm has raised in excess of $400 million for fund-of-funds, merger arbitrage
and equity long/short strategies.
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