ENRON'S Herbert S. Winokur, Jr.


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FIRST ROW, FROM LEFT, Ken L. Harrison, John A. Urquhart, Robert A. Belfer, Norman P. Blake, Jr., Robert K. Jaedicke, Ronnie C. Chan, Jeffrey K. Skilling, Kenneth L. Lay and Wendy L. Gramm. Second Row, from left, Bruce G. Willison, John H. Duncan, Joe H. Foy, Charls E. Walker, John Wakeham, Jerome J. Meyer, Herbert S. Winokur, Jr. and Charles A LeMaistre.

Herbert S. "Pug" Winokur, Jr.
Capricorn Holdings, Inc.

Mr. Winokur has served as a Director of the Company since 1998. He is Chairman and Chief Executive Officer of Capricorn Holdings, Inc., (a private investment company) and Managing General Partner of Capricorn Investors, L.P., Capricorn Investors II, L.P. and Capricorn Investors III, L.P., private investment partnerships concentrating on investments in restructure situations, organized by Mr. Winokur in 1987, 1994 and 1999 respectively. Prior to his current appointment, Mr. Winokur was Senior Executive Vice President and Director of Penn Central Corporation. Mr. Winokur is a Director of Enron Corp., Mrs. Fields' Famous Brands, Inc., Natco Group, Inc., CCC Information Services Group, Inc. and DynCorp. Mr. Winokur is Chairman of the Compensation Committee.

Herbert S. "Pug" Winokur, Jr. & Penn Central Corporation

*******       *******
Blind Faith: How Deregulation and Enron's Influence Over Government Looted Billions from Americans

Enron's Pug Winokur, Shadow Government Insider
Herbert S. "Pug" Winokur, Jr. -- President - Capricorn Holdings, Inc.
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By: Uri Dowbenko

The phony US energy crisis has deep ties to the Bush Family.
One of the prime beneficiaries of the "crisis" is Enron Corporation and its Chairman Ken Lay, a major corporate and personal contributor to George Bush Jr.'s presidential campaign.

Even though California Gov. Gray Davis has reached into California residents' deep pockets to bail out the utility companies through emergency legislation, Washington Gov. Gary Locke has balked.

According to KCPQ-TV's Chris Daniels' "A Disturbing New Twist in Western Power Troubles, "Governor Locke says, 'It's unjustified, it's obscene, and clearly hurting all consumers.'"

Like other western governors, Locke has had to pay for electricity at any price.

In November of 1999, for example, electricity was purchased for $29 a megawatt hour.

A year later, the price increased to $160 an hour, according to sources at Tacoma Power.

Last month it was at $525.

Locke expressed his indignation saying, "I've very disappointed in President Bush that the new administration will not be intervening."

But why should he intervene?

One of Bush's largest campaign contributors is Enron Corporation, a Texas-based company which is part of the defacto global energy oligopoly-cartel.

Although diversifying into other business, Enron has been best known as the largest buyer and seller of natural gas in the United States. Its 1999 revenues of $40 billion had made it the 18th largest company in the United States.

Enron is also invested in energy projects around the world, including the UK, Argentina, Bolivia, Brazil, the Philippines, Indonesia, China, India and Mozambique.

One of the global energy cartel's most visible players, Enron saw its corporate profits rise 34 percent in the fourth quarter of 2000.

Enron shareholders should ask -- did dividends come from price gouging US citizens?

How George Bush Jr. Got Laid

Federal Election Commission records show that Enron Chairman Kenneth Lay donated more than $350,000 directly to Bush campaigns since 1997.

Lay also gave another $100,000 to Republican candidates and fundraising committees.

In addition, Enron Corporation, including employees, also donated $1.5 million in soft money to Bush and Republican committees.

More recently, Lay and his wife donated $10,000 to the "Florida Recount Fund," and another $100,000 to the "Presidential Inaugural Fund."

As one of his fundraising "Pioneers," Lay helped raise more than $100,000 for Bush's campaign for president.

In consideration of these numbers, is it too much to ask for a phony and contrived power "crisis" as a payback?

Naah, not at all...

According to newswire reports, as a new energy advisor for President Bush, Ken Lay says that precap prices for wholesale electricity in the West "is not even a short-term solution." |

Not coincidentally, Enron is the largest power marketer in the United States. A cap would limit the prices it and other wholesalers could charge to utilities. Wholesale power prices were deregulated under the landmark 1996 law but retail rates were not.

Lay said the federal government should limit itself to an "advisory" role, letting California leaders resolve a "pretty much self-inflicted problem."

California's rolling blackouts have come as the two large utilities, PG&E Corp. and Southern California Edison, have struggled under huge debts through buying electricity at higher wholesale prices than they can recoup under the retail rates they are allowed to charge.

In the short term, Lay said, the state government will have to "buy the power to fill the short positions of the utilities."

And to ensure Enron's unconscionable profit, he should have added.

Enron's Pug Winokur, Shadow Government Insider

On the Enron corporate website, one of the Board of Directors, Herbert S. "Pug" Winokur, Jr., is described as Chairman and CEO of Capricorn Holdings, Inc., and Former Senior Executive Vice President, Penn Central Corporation.

As the Insiders' Insider, "Pug" Winokur has been such a permanent fixture in the Washington Old Boy Network that he's even mentioned in a 1978 book by Daniel Guttman called "The Shadow Government."

Historically Winokur's Capricorn Holdings was used as an investment vehicle in NHP, an apartment management firm headed by Roderick Heller III.

In turn, NHP's assets included oft-purloined and defaulted HUD Section 8 subsidy housing, a notorious and well-known vehicle for fraud and money laundering.

Winokur was also on the Board of Directors of Harvard Endowment Fund, which purchased 50 percent of NHP, making the prestigious Harvard a prototypical, but very low-profile, slum landlord. (See Bushwhacked: HUD Fraud, Spooks and the Slumlords of Harvard" http://www.conspiracydigest.com/bushwhacked1.html)

It should also be noted that George Bush Jr. attended Harvard Business School. Later, after Bush joined Harken Energy Corp and became a director, the largest stock position and seat on the board was acquired by Harvard Management Co.

Ironically, from 1988 to 1997, Winokur was also the Chairman and CEO of DynCorp, one of the government's largest contractors in data acquisition and management.

Since DynCorp had a contract from the Department of Justice, Winokur would have profited from the DoJ Asset Seizure Program, as well as HUD's Operation Safe Home seizures which targeted low-income tenants and mortgage holders in the inner cities.

In addition DynCorp is one of the lead contractors for the new phony War on Drugs in South America called "Plan Colombia," another tax-payer supported scam to bring monies into DynCorp's coffers.

Now there's a guy who understands that the only way to do a deal is to get it rigged from the very beginning.

Enron's Son of a Spook

Enron dealmaker Frank Wisner, Jr. muscled the company into lucrative overseas contracts, most notably in India and the Philipines.

Enron's deal to manage a power plant in the Philippines was due largely to Wisner's efforts. Based in Subic Bay, a former US military outpost, the power planet was taken over by Enron in 1993, two months after the last US troops left the base.

Wisner is also credited with helping Enron win a $2.8 billion deal in India, building a power plant near Bombay. Now the project is under heavy fire for being over-priced, and the deal continues to simmer with allegations of bribery.

Wisner Jr. must have learned his tradecraft from his father Frank Wisner Sr., one of the CIA's prime operatives.

Wisner Sr., who worked at CIA from 1947 until just before his "suicide" in 1965, was involved in 1) the 1954 CIA coup in Guatemala, toppling the government of Jacobo Arbenz for United Fruit Company, 2) the 1953 overthrow of Iranian Prime Minister Mohammed Mossadeq, and 3) the secret operations against Indonesian President Sukarno.

Unlike his spooky father, Frank Wisner Jr., however, was a former Pentagon official before his job at Enron.

Enron's Ken Lay and the Bush Boys

Enron Founder and Chairman Kenneth Lay also worked in the Pentagon for the Nixon administration during the Vietnam War.

Lay is a close friend of George Bush, Sr. In fact, his Houston home in River Oaks is near the Tanglewood residence of the former President and CIA Director.

Although there have been no published reports of Bush Sr. doing favors for Lay, three of the Bush Boys have used their father's name to get contracts for Enron.

According to an article by Seymour Hersh in the New Yorker, Neil and Marvin Bush tried to influence government officials for an Enron bid to rebuild Shuaiba North power plant in Kuwait.

Ironically this power plant was destroyed in George Bush's Persian Gulf War. Enron abandoned the bid a year ago.

In 1988, then Texas governor George Bush Jr., reportedly telephoned Rodolfo Terragno, Argentina's Public Works Minister, to ask him to award Enron a contract to build a pipeline from Chile to Argentina.

"He assumed that the fact he was the son of the president would exert influence. I felt pressured. It was not proper for him to make that kind of call," Terragno told The Nation.

Finally, when Carlos Menem, another Bush Sr. crony, became president of Argentina, Enron won the bid.

Neil Bush, director of the failed Denver-based Silverado Savings and Loan, created a subsidiary of his oil company to conduct business in Argentina in 1987.

Argentina finally got so fed up with the Bush Boys, they formally had a parliamentary investigation regarding their so-called "business dealings.

Enron Rigs Washington During the Clinton Years

Even though it has strong ties to the Republican Party, Enron also did remarkably well during the Clinton years.

Most importantly, they got a ban lifted on Export-Import Bank financing of projects in China.

This allowed Enron to move forward on overseas projects guaranteed by US taxpayers. In other words, if Enron "fails," you pay.

Enron also got new rules instituted at the Ex-Im Bank that allowed the bank to finance projects on the basis of projected cash flow.

This insider track helped Enron make multi-billion dollar deals overseas with US taxpayers guaranteeing their performance.

* March 1993, Enron made a deal to develop new European markets for Russian gas.

* November 1993, Enron made a $1 billion deal with Turkey to develop two power plants. Ex-Im Bank provided $285 million in financing. The Overseas Private Investment Council(OPIC)covered insurance costs.

* August 1994, Enron made a deal to build a power plant in India. ExIm provides major financing and OPIC provides an additional $100 million.

* November 1994, Enron made a deal to build a $130 million power plant in China. Ex-Im Bank again provided the financing.

Moral of the story? When you're a monopoly capitalist, it doesn't matter who's in office. Republicans. Democrats. They all bribe the same.

Lawsuit Against Enron Alleges Conspiracy

Unfazed by the bogus and contrived energy crisis, the San Francisco City Attorney is filing a lawsuit against Enron and eleven other companies.

The filing says that Enron "conspired to restrict supplies and drive up prices" costing consumers additional charges "on the order of 1 billion dollars."

Washington's Governor Locke says President Bush needs to take counter-measures or the economy will suffer on a national level.

"If the federal government doesn't act, you're going to see a lot of jobs go away, a lot of business close down..." says Locke. "We need help from the federal government immediately to help stabilize the situation."

Is this Enron's first visible and public Bush payoff?

It just might be the best "energy crisis" money can buy.


DynCorp/Enron's Pug Winokur, Shadow Government Insider

Similarly, the mainstream press has ignored revelations of a
whistle-blower working for DynCorp in Bosnia, a giant corporation that
provides maintenance support for the U.S. military . The whistle blower
provided evidence of massive fraud involving military money. What
reportedly led him to speak out was DynCorp executives buying 12- to
15-year-old girls from neighboring countries as sex slaves. Researchers
have documented that sex slavery and prostitution for executives of U.S.
corporations is a worldwide, multibillion-dollar business.

Insight on the News - National  Issue: 02/18/02

 DynCorp Disgrace
 By Kelly Patricia O'Meara - komeara@InsightMag.com

 Middle-aged men having sex with 12- to 15-year-olds was too
 much for Ben Johnston, a hulking 6-foot-5-inch Texan, and more
 than a year ago he blew the whistle on his employer, DynCorp, a
 U.S. contracting company doing business in Bosnia.

 According to the Racketeer Influenced Corrupt Organization Act
 (RICO) lawsuit filed in Texas on behalf of the former DynCorp
 aircraft mechanic, "in the latter part of 1999 Johnston learned
 that employees and supervisors from DynCorp were engaging in
 perverse, illegal and inhumane behavior [and] were purchasing
 illegal weapons, women, forged passports and [participating in]
 other immoral acts. Johnston witnessed coworkers and supervisors
 literally buying and selling women for their own personal
 enjoyment, and employees would brag about the various ages and
 talents of the individual slaves they had purchased."

 Rather than acknowledge and reward Johnston's effort to get this
 behavior stopped, DynCorp fired him, forcing him into protective
 custody by the U.S. Army Criminal Investigation Division (CID)
 until the investigators could get him safely out of Kosovo and
 returned to the United States. That departure from the war-torn
 country was a far cry from what Johnston imagined a year earlier
 when he arrived in Bosnia to begin a three-year U.S. Air Force
 contract with DynCorp as an aircraft-maintenance technician for
 Apache and Blackhawk helicopters.

 For more than 50 years DynCorp, based in Reston, Va., has been
 a worldwide force providing maintenance support to the U.S.
 military through contract field teams (CFTs). As one of the federal
 government's top 25 contractors, DynCorp has received nearly $1
 billion since 1995 for these services and has deployed 181
 personnel to Bosnia during the last six years. Although DynCorp
 long has been respected for such work, according to Johnston and
 internal DynCorp communications it appears that extracurricular
 sexcapades on the part of its employees were tolerated by some
 as part of its business in Bosnia.

 But DynCorp was nervous. For instance, an internal e-mail from
 DynCorp employee Darrin Mills, who apparently was sent to Bosnia
 to look into reported problems, said, "I met with Col. Braun [a
 base supervisor] yesterday. He is very concerned about the CID
 investigation; however, he views it mostly as a DynCorp problem.
 What he wanted to talk about most was how I am going to fix the
 maintenance problems here and how the investigation is going to
 impact our ability to fix his airplanes." The Mills e-mail continued:
 "The first thing he told me is that 'they are tired of having smoke
 blown up their ass.' They don't want anymore empty promises."

 An e-mail from Dyncorp's Bosnia site supervisor, John Hirtz (later
 fired for alleged sexual indiscretions), explains DynCorp's position
 in Bosnia. "The bottom line is that DynCorp has taken what used
 to be a real positive program that has very high visibility with
 every Army unit in the world and turned it into a bag of worms.
 Poor quality was the major issue."

 Johnston was on the ground and saw firsthand what the military
 was complaining about. "My main problem," he explains, "was
 [sexual misbehavior] with the kids, but I wasn't too happy with
 them ripping off the government, either. DynCorp is just as
 immoral and elite as possible, and any rule they can break they
 do. There was this one guy who would hide parts so we would
 have to wait for parts and, when the military would question why
 it was taking so long, he'd pull out the part and say 'Hey, you
 need to install this.' They'd have us replace windows in helicopters
 that weren't bad just to get paid. They had one kid, James Harlin,
 over there who was right out of high school and he didn't even
 know the names and purposes of the basic tools. Soldiers that are
 paid $18,000 a year know more than this kid, but this is the way
 they [DynCorp] grease their pockets. What they say in Bosnia is
 that DynCorp just needs a warm body - that's the DynCorp
 slogan. Even if you don't do an eight-hour day, they'll sign you in
 for it because that's how they bill the government. It's a total

 Remember, Johnston was fired by this company. He laughs bitterly
 recalling the work habits of a DynCorp employee in Bosnia who
 "weighed 400 pounds and would stick cheeseburgers in his
 pockets and eat them while he worked. The problem was he would
 literally fall asleep every five minutes. One time he fell asleep with
 a torch in his hand and burned a hole through the plastic on an
 aircraft." This same man, according to Johnston, "owned a girl
 who couldn't have been more than 14 years old. It's a sick sight
 anyway to see any grown man [having sex] with a child, but to
 see some 45-year-old man who weighs 400 pounds with a little
 girl, it just makes you sick." It is precisely these allegations that
 Johnston believes got him fired.

 Johnston reports that he had been in Bosnia only a few days when
 he became aware of misbehavior in which many of his DynCorp
 colleagues were involved. He tells INSIGHT, "I noticed there were
 problems as soon as I got there, and I tried to be covert because
 I knew it was a rougher crowd than I'd ever dealt with. It's not
 like I don't drink or anything, but DynCorp employees would come
 to work drunk. A DynCorp van would pick us up every morning and
 you could smell the alcohol on them. There were big-time drinking
 issues. I always told these guys what I thought of what they
 were doing, and I guess they just thought I was a self-righteous
 fool or something, but I didn't care what they thought."

 The mix of drunkenness and working on multimillion-dollar aircraft
 upon which the lives of U.S. military personnel depended was a
 serious enough issue, but Johnston drew the line when it came to
 buying young girls and women as sex slaves. "I heard talk about
 the prostitution right away, but it took some time before I
 understood that they were buying these girls. I'd tell them that it
 was wrong and that it was no different than slavery - that you
 can't buy women. But they'd buy the women's passports and they
 [then] owned them and would sell them to each other."

 "At first," explains Johnston, "I just told the guys it was wrong.
 Then I went to my supervisors, including John Hirtz, although at
 the time I didn't realize how deep into it he was. Later I learned
 that he had videotaped himself having sex with two girls and CID
 has that video as evidence. Hirtz is the guy who would take new
 employees to the brothels and set them up so he got his women
 free. The Serbian mafia would give Hirtz the women free and,
 when one of the guys was leaving the country, Hirtz would go to
 the mafia and make sure that the guys didn't owe them any

 "None of the girls," continues Johnston, "were from Bosnia. They
 were from Russia, Romania and other places, and they were
 imported in by DynCorp and the Serbian mafia. These guys would
 say 'I gotta go to Serbia this weekend to pick up three girls.' They
 talk about it and brag about how much they pay for them -
 usually between $600 and $800. In fact, there was this one guy
 who had to be 60 years old who had a girl who couldn't have been
 14. DynCorp leadership was 100 percent in bed with the mafia
 over there. I didn't get any results from talking to DynCorp
 officials, so I went to Army CID and I drove around with them,
 pointing out everyone's houses who owned women and weapons."

 That's when Johnston's life took a dramatic turn.

 On June 2, 2000, members of the 48th Military Police Detachment
 conducted a sting on the DynCorp hangar at Comanche Base
 Camp, one of two U.S. bases in Bosnia, and all DynCorp personnel
 were detained for questioning. CID spent several weeks working
 the investigation and the results appear to support Johnston's
 allegations. For example, according to DynCorp employee Kevin
 Werner's sworn statement to CID, "during my last six months I
 have come to know a man we call 'Debeli,' which is Bosnian for fat
 boy. He is the operator of a nightclub by the name of Harley's
 that offers prostitution. Women are sold hourly, nightly or

 Werner admitted to having purchased a woman to get her out of
 prostitution and named other DynCorp employees who also had
 paid to own women. He further admitted to having purchased
 weapons (against the law in Bosnia) and it was Werner who
 turned over to CID the videotape made by Hirtz. Werner
 apparently intended to use the video as leverage in the event
 that Hirtz decided to fire him. Werner tells CID, "I told him [Hirtz] I
 had a copy and that all I wanted was to be treated fairly. If I was
 going to be fired or laid off, I wanted it to be because of my work
 performance and not because he was not happy with me."

 According to Hirtz's own sworn statement to CID, there appears
 to be little doubt that he did indeed rape one of the girls with
 whom he is shown having sexual intercourse in his homemade

 CID: Did you have sexual intercourse with the second woman on
 the tape?

 Hirtz: Yes

 CID: Did you have intercourse with the second woman after she
 said "no" to you?

 Hirtz: I don't recall her saying that. I don't think it was her
 saying "no."

 CID: Who do you think said "no"?

 Hirtz: I don't know.

 CID: According to what you witnessed on the videotape played
 for you in which you were having sexual intercourse with the
 second woman, did you have sexual intercourse with the second
 woman after she said "no" to you?

 Hirtz: Yes.

 CID: Did you know you were being videotaped?

 Hirtz: Yes. I set it up.

 CID: Did you know it is wrong to force yourself upon someone
 without their consent?

 Hirtz: Yes.

 The CID agents did not ask any of the men involved what the
 ages of the "women" were who had been purchased or used for
 prostitution. According to CID, which sought guidance from the
 Office of the Staff Judge Advocate in Bosnia, "under the Dayton
 Peace Accord, the contractors were protected from Bosnian law
 which did not apply to them. They knew of no [U.S.] federal laws
 that would apply to these individuals at this time."

 However, CID took another look and, according to the
 investigation report, under Paragraph 5 of the NATO Agreement
 Between the Republic of Bosnia-Herzegovina and Croatia regarding
 the status of NATO and its personnel, contractors "were not
 immune from local prosecution if the acts were committed outside
 the scope of their official duties."

 Incredibly, the CID case was closed in June 2000 and turned over
 to the Bosnian authorities. DynCorp says it conducted its own
 investigation, and Hirtz and Werner were fired by DynCorp and
 returned to the United States but were not prosecuted. Experts in
 slave trafficking aren't buying the CID's interpretation of the law.

 Widney Brown, an advocate for Human Rights Watch, tells
 INSIGHT "our government has an obligation to tell these
 companies that this behavior is wrong and they will be held
 accountable. They should be sending a clear message that it
 won't be tolerated. One would hope that these people wouldn't
 need to be told that they can't buy women, but you have to start
 off by laying the ground rules. Rape is a crime in any jurisdiction
 and there should not be impunity for anyone. Firing someone is
 not sufficient punishment. This is a very distressing story -
 especially when you think that these people and organizations are
 going into these countries to try and make it better, to restore a
 rule of law and some civility."

 Christine Dolan, founder of the International Humanitarian
 Campaign Against the Exploitation of Children, a
 Washington-based nonprofit organization, tells Insight: "What is
 surprising to me is that Dyncorp has kept this contract. The U.S.
 says it wants to eradicate trafficking of people, has established
 an office in the State Department for this purpose, and yet
 neither State nor the government-contracting authorities have
 stepped in and done an investigation of this matter."

 Dolan says, "It's not just Americans who are participating in these
 illegal acts. But what makes this more egregious for the U.S. is
 that our purpose in those regions is to restore some sense of
 civility. Now you've got employees of U.S. contractors in bed with
 the local mafia and buying kids for sex! That these guys have
 some kind of immunity from prosecution is morally outrageous.
 How can men be allowed to get away with rape simply because of
 location? Rape is a crime no matter where it occurs and it's
 important to remember that even prostitution is against the law in
 Bosnia. The message we're sending to kids is that it's okay for
 America's representatives to rape children. We talk about the
 future of the children, helping to build economies, democracy, the
 rule of law, and at the same time we fail to prosecute cases like
 this. That is immoral and hypocritical, and if DynCorp is involved in
 this in any way it should forfeit its contract and pay restitution in
 the form of training about trafficking."

 Charlene Wheeless, a spokeswoman for DynCorp, vehemently
 denies any culpability on the part of the company, According to
 Wheeless, "The notion that a company such as DynCorp would
 turn a blind eye to illegal behavior by our employees is
 incomprehensible. DynCorp adheres to a core set of values that
 has served as the backbone of our corporation for the last 55
 years, helping us become one of the largest and most respected
 professional-services and outsourcing companies in the world. We
 can't stress strongly enough that, as an employee-owned
 corporation, we take ethics very seriously. DynCorp stands by its
 decision to terminate [whistle-blower] Ben Johnston, who was
 terminated for cause."

 What was the "cause" for which Johnston was fired? He received
 his only reprimand from DynCorp one day prior to the sting on the
 DynCorp hangar when Johnston was working with CID. A week
 later he received a letter of discharge for bringing "discredit to the
 company and the U.S. Army while working in Tuzla,
 Bosnia-Herzegovina." The discharge notice did not say how
 Johnston "brought discredit to the company."

 It soon developed conveniently, according to Johnston's
 attorneys, that he was implicated by a DynCorp employee for
 illegal activity in Bosnia. Harlin, the young high-school graduate
 Johnston complained had no experience in aircraft maintenance
 and didn't even know the purposes of the basic tools, provided a
 sworn statement to CID about Johnston. Asked if anyone ever had
 offered to sell him a weapon, Harlin fingered Johnston and
 DynCorp employee Tom Oliver, who also had disapproved of the
 behavior of DynCorp employees.

 Harlin even alleged that Johnston was "hanging out with Kevin
 Werner." Although Werner had no problem revealing the names
 and illegal activities of other DynCorp employees, Werner did not
 mention Johnston's name in his sworn statement.

 Kevin Glasheen, Johnston's attorney, says flatly of this: "It's
 DynCorp's effort to undermine Ben's credibility. But I think once
 the jury hears this case, that accusation is only going to make
 them more angry at DynCorp. In order to make our claim, we have
 to show that DynCorp was retaliating against Ben, and that fits
 under racketeering. There is a lot of evidence that shows this was
 what they were doing and that it went all the way up the
 management chain."

 According to Glasheen, "DynCorp says that whatever these guys
 were doing isn't corporate activity and they're not responsible for
 it. But this problem permeated their business and management and
 they made business decisions to further the scheme and to cover
 it up. We have to show that there was a causal connection
 between Ben's whistle-blowing about the sex trade and his being
 fired. We can do that. We're here to prove a retaliation case, not
 convict DynCorp of participating in the sex-slave trade.

 "What you have here is a Lord of the Flies mentality. Basically
 you've got a bunch of strong men who are raping and manipulating
 young girls who have been kidnapped from their homes. Who's the
 bad guy? Is it the guy who buys the girl to give her freedom, the
 one who kidnaps her and sells her or the one who liberates her
 and ends up having sex with her? And what does it mean when
 the U.S. steps up and says, 'We don't have any jurisdiction'?
 That's absurd."

 The outraged attorney pauses for breath. "This is more than one
 twisted mind. There was a real corporate culture with a deep
 commitment to a cover-up. And it's outrageous that DynCorp still
 is being paid by the government on this contract. The worst thing
 I've seen is a DynCorp e-mail after this first came up where
 they're saying how they have turned this thing into a marketing
 success, that they have convinced the government that they
 could handle something like this."

 Johnston is not the only DynCorp employee to blow the whistle
 and sue the billion-dollar government contractor. Kathryn
 Bolkovac, a U.N. International Police Force monitor hired by the
 U.S. company on another U.N.-related contract, has filed a
 lawsuit in Great Britain against DynCorp for wrongful termination.
 DynCorp had a $15 million contract to hire and train police officers
 for duty in Bosnia at the time she reported such officers were
 paying for prostitutes and participating in sex-trafficking. Many of
 these were forced to resign under suspicion of illegal activity, but
 none have been prosecuted, as they also enjoy immunity from
 prosecution in Bosnia.

 DynCorp has admitted it fired five employees for similar illegal
 activities prior to Johnston's charges.

 But Johnston worries about what this company's culture does to
 the reputation of the United States. "The Bosnians think we're all
 trash. It's a shame. When I was there as a soldier they loved us,
 but DynCorp employees have changed how they think about us. I
 tried to tell them that this is not how all Americans act, but it's
 hard to convince them when you see what they're seeing. The
 fact is, DynCorp is the worst diplomat you could possibly have
 over there."

 Johnston's attorney looks to the outcome. "How this all ends,"
 says Glasheen, "will say a lot about what we stand for and what
 we won't stand for."

 Kelly Patricia O'Meara is an investigative reporter for Insight.



As Federal investigations swirl around Winokur and other board members, doubt has been raised about the viability of independent investigation, given Enron's enormous political clout, Winokur's leading role in the company that manages information systems for many of the investigative agencies raises a special set of concerns.

Winokur owes much of his wealth to his role in reconstructing Dyncorp, one of the Federal government's largest private contractors. He is a former Dyncorp chairman and remains a director of the company. At present, Dyncorp manages e-mail and information systems for the Department of Justice, the Securities and Exchange Commission and the Federal Bureau of Investigations.

Investigators are reportedly concerned that Dyncorp's control of agency information systems could compromise their investigations of Winokur and Enron.

more.... Harvard Watch Org. See Full Report  http://www.harvardwatch.org

Dirty Tricks, Inc.:
The DynCorp-Government Connection


Catherine Austin Fitts mailto:catherine@solari.com
Sat Feb 16 22:09:58 2002

(*Editors Note | The following article was written for truthout by contributing
writer Catherine Austin Fitts, the President of Solari, Inc, an investment
advisory firm. Solari provides risk management services to investors through
Sanders Research Associates in London. Catherine is a former managing director
and member of the board of directors of Dillon Read & Co, Inc, a former
Assistant Secretary of Housing-Federal Housing Commissioner in the first Bush
Administration, and former President of The Hamilton Securities Group, Inc.)

by Catherine Austin Fitts
t r u t h o u t | February 14, 2002

The earth is not dying. It is being killed, and the people killing it have names
and addresses."
--Utah Phillips

In Congressional Testimony on February 7, 2002, Herbert S. ("Pug") Winokur,
Chairman of the Enron Finance Committee, gave an opening statement that he
had been "misled" by Enron management, Enron's auditor Arthur Andersen and
Enron's counsel Vinson & Elkins.

Every trucker and teacher in my West Tennessee home of Hickory Valley knows
that Mr. Winokur's whining is yah-yah.

We are paying $150,000 a year to our Congressman and two Senators to help
Mr. Winokur and his pals steal from us. Congress is stalling for time.

While Mr. Winokur and his pals dish out "yah-yah" their collegues shred
documents, transfer assets and stolen cash gets tucked away.

As an Assistant Secretary in the first Bush Administration, I cleaned up the
Iran Contra financial fraud known as the S&L crisis and the HUD scandal. That
was another very expensive stink engineered between Houston and Wall Street
banks, just like Enron.

Later as the head of my own private investment bank, I helped clean up the
BCCI stealing. With many years experience dealing with high stakes stealing,
I assure you that you can trust your intuition --- Congress and the Department
of Justice have taken the art of cover up and providing air cover to white
collar criminals to new heights of mendacity.

Did your Congressional representatives and Attorney General press for seizures
of records and cash for the last few months while the money was getting away?
No siree!

While Mr. Winokur was spinning his yah-yah, the Wall Street law firms of
Sullivan & Cromwell and Covington & Burling were quietly closing the transfer
of the Enron Online trading operation to UBS, one of the largest Swiss banks.
While Mr. Winokur's whining distracted us through C-SPAN, Wall Street got
safely away with the family jewels and dirty laundry.

Not a word did we hear about getting back cash or holding up any transfers to
a Swiss bank until we are sure we have the investigatory control necessary to
protect our interests. Everyone here in Tennessee knows the expression
"Possession is 99% of the law." The real deal is that the Swiss now have

Turns out the Enron gold bullion and derivative trading operation also was
quietly traded away. They get the gold, we get c-span diversions.

Us folks here in West Tennessee are busy. As I drive all over the country,
folks say the same every where I go. We are pressed for time. Somebody has to
do the real work while our leaders are preoccupied with stealing our money
and keeping us in the dark. We have more important things to do than to
spend hours listening to yah-yah constructed by a team of fancy lawyers
whose core competency is lying for money. To buy groceries and health care
insurance we need cash. That takes a lot of time if you do it with honest

To help my fellow citizens hold Mr. Winokur and our respresentatives
accountable, I drafted a list of follow-up questions for Mr. Winokur.
I have sent them to him at his last posted e-mail address. I have also
sent questions to the Securities and Exchange Commission.

My prayer is that these questions will be useful to exercising your
responsibility as a citizen, or as a shareholder or constituent in any of
the organizations and companies in which Mr. Winokur has power and
influence to manage resources on your behalf.

Now its your turn. Do your duty.

Catherine Austin Fitts
Hickory Valley, Tennessee
Link to correspondence with MR. WINOKUR & related correspondence:

William C. Powers, Jr.

Whistle Blowing:
Abigail Hubbard
Assistant Professor of Management
Corporate whistle blowing; organizational power, politics and
culture; organizational behavior and management theory; and
international business/cross cultural management
“Whistle blowing is common in industries that are regulated by
public oversight committees. Essentially any company that owns
government contracts, like NASA, chemical corporations and
infrastructure companies, encourage whistle blowing in an
anonymous way. To establish a true public oversight committee, a
company’s policy, practice and culture must support it; else
employees deem it lip service. In the case of Enron and Sherron
Watkins, Watkins didn’t take a big risk because the company was
already troubled at that point. In other cases though, high risk and
moral courage are required.”


newflash.gif (1754 bytes)MORE ON HERBERT "PUG" WINOKUR, JR


Tracking "Pug" Winokur, wolf in the Enron fold



Harvard could face inquiry into Enron links


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