Archive for July 2006

Write-Offs: 07.31.06

$$$Craigslist offers its two-cents on the Top Scumbag Professions:”stock broker — requires no knowledge of markets, just the ability to sell you a dead cat in a box, while making you think you got a great find.” And our To-Do list for today is suddenly much lighter. [Craiglist]
$$$The Chocolate Phone has arrived. Buy it and try to win back the respect that was lost the day you were revealed to be the only one at the West Garden Spa without the Q. Plebe. [engadget]

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The Perfect Storm, DealBreaker Style

We’ve been spending some time trying to clear away the murk and shine some light into the shadows of Jeffrey Epstein’s financial dealings in an effort to provide some, uhm, actual financial reporting related to the sex candal encircling the mysterious money manager. There’s not much that is publicly available but we’re still digging.
What we have discovered, however, is a brief document amending a credit agreement for RELIANT PHARMACEUTICALS, INC. The amendment replaces the administrative agent for the credit. But what caught our eye was the confluence of three DealBreaker subjects all in the same documents.
The signature pages include lines for Morgan Stanley CEO John Mack, who is scheduled to appear before the SEC in connection with allegations of insider trading at Pequot Capital, as well at Jeffrey Epstein, who signs as trustee of the Wexner Children’s Trust II, part of the financial empire of The Limited founding family. And the agent who is being replaced? Goldman Sachs, where alleged insider trading crooks Eugene Plotkin and David Pajcin worked (not to mention the alma mater of that other DealBreaker obsession, Hank Paulson).
Now this is no doubt just a coincidence, and not really a conspiracy to make our heads explode. We should probably just take a deep breath and then post a Venn Diagram illustrating the connections but our diagramist is in meetings off-site.
One additional thought: this is probably the last time you’ll see Epstein’s name coupled with the words “trust” and “children” any time in the near future.

Reliant Consent, waiver and amendment
[SEC]

Jeffrey Epstein’s Been Around Young Girls Before

daltonschool.jpgDoes the fact that Jeffrey Epstein taught high school math and physics at Dalton for three years creep anyone else out? Unless you’ve been depending on the New York Times for your news, by now you know that Jeffrey Epstein has been charged with felony solicitation of prostitution rather than even more serious charges of molestation and sex with minors. But the facts alleged in the police affidavit released on the Smoking Gun clearly spell out a taste for getting young, high school age girls to co-operate in some pretty raunchy scenarios. This raises the question: how long has this been going on?*
Did you go to Dalton in the mid-seventies? Epstein taught there from 1973 through 1975, when he left to take a job at Bear Stearns. We’d love to hear from you if you remember Epstein from those years, whatever your impressions—good, bad, ugly or totally perverse. Unless otherwise indicated, we’ll keep your comments completely anonymous. Send your comments to tips(at)dealbreaker(dot)com.
[* Editors Note: We know, we know. It may not have gone on at all. Everyone is innocent until proven guilty. God loves all his little creatures. The allegations and charges are serious, though, and we don’t think it’s too early to start asking these questions.]

Grasso Loses Lawyer, New Attorney Still Not a Potted Plant

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Dick Grasso will likely lose one of the most powerful forces he has on his side —Williams & Connolly attorney Brendan Sullivan. A recent ruling moving the trial date up to September from late October, probably means that Sullivan, who famously represented Oliver North in the Iran-Contra hearings, will not be able to serve as lead attorney at trial, according to CNBC’s Charlie Gasparino. Sullivan is already set to represent another client in a trial scheduled for the same time.
Surprisingly, Grasso may ultimately benefit from the new date. Lawyers working for Attorney General Eliot Spitzer have complained that the new date doesn’t give them enough time to prepare for the case.
Oh, and the headline comes from Sullivan’s famous reply to lawmakers who complained he was objecting too much to their questions to Colonel North. “I’m not a potted plant. I’m here as a lawyer. That’s my job,” Sullivan said. Reportedly, the guy now running Grasso’s defense, Gerson Zweifach, is not potted plant either.

Grasso loses Brendan Sullivan
[SquawkBlog]

  • 31 Jul 2006 at 1:01 PM
  • Exotics

Some girls are richer than others

lydiahearst.jpgRegular readers are no doubt familiar with our concern for rich, beautiful women. We earlier linked to a Forbes’ list of billionaires under 35, which unfortunately included very few women. But just because a girl isn’t a billionaire yet, doesn’t mean she won’t be soon. Like when her parent units kick off for that great country club in Hell. So which hotties are destined for fortune? The latest Forbes list brings us “The Hottest Billionaire Heiresses.”
We’re kind of partial to Lydia Hearst-Shaw (pictured left) but that’s probably more evidence of a sickness within our souls than anything intrinsically wonderful about our Lydia.
The Hottest Billionaire Heiresses [Forbes]

Citigroup Raids Lehman for Banking Bankers

Citigroup scored a major coup on Friday, taking an entire team of bankers specializing in financial services deals from Lehman brothers. The defectors are led by Henry Michaels and John Roddy, and includes director Jerry Wiant, VP Sean Burke and associates John Minor and Donald Lacey. The best part–or at least a really great part of the deal–is that whole group isn’t starting for a month, after taking a thirty day break to comply with exisiting non-compete agreements.
Contractually obligatory summer vacations. So effin hot.
Citigroup Hires Six FIG Bankers From Lehman [Dow Jones Wire on CNNMoney.Com]

jeffreyepstein1.jpgWhy are Mark Green and Eliot Spitzer handing $60,000.00 over to alleged money manager cum massage masturbator Jeffrey Epstein? It’s pretty standard procedure these days for politicians to send back contributions from donors accused of crime or mired in scandal, and we guess allegations of soliciting prostitution, paying for naked massages from teenagers, human trafficking and all around pervy weirdness qualify. But is sending the check back really the right move here? Wouldn’t it be better to donate the money to a worthy cause, such a home for sexually abused children? Why should Epstein be enriched by these allegations?
Let’s put it this way. By sending back Epstein’s $10,000 donation, Attorney General candidate Green just bought Epstein 50 sessions with local highshool girls at $200 a pop.

Dirty donor to get 10G back: Green
[Daily News]