Life is a series of crossroads and when "wrong" choices are made at these crossroads, at best we open ourselves to criticism and to doubts about our integrity. At worst, these choices remain to haunt us and they reappear time and again, sometimes in our own lives, and sometimes in the lives of those around us. This seems to be the situation with the cases of corporate fraud that are now coming out of hiding.
There appeared a small story in the New York Times in 1989. It seemed only to be a story of children of the rich and famous being given a break. The story now looms darkly over nearly every American and their 401Ks and pension plans.
There were many reasons I did not support George W. Bush in 2000 even though I was a registered Republican. The fact that he tried to cover up a past D.U.I. or glossed over an earlier drinking problem was not in the mix. Sure, Bush had a rocky start as a young adult but so have many other folks who have gone on to very successful careers. Usually though there is a point where one must choose between integrity and deception in their quest for future success.
The tip-off that started me looking deeper into the campaign rhetoric was Bush's stock transactions in the late 80's while his father was Vice President and then President. Perhaps the low point of Bush's professional life was the failure of his oil company, Spectrum 7. Though the company was failing, Bush arranged the sale of his company for 2 million dollars to Harken Energy, which was also losing money. When the founder of Harken was quizzed as to why he bought the company, he stated simply "His name was George Bush".
The sale also netted Bush stock in Harken, and a directorship on Harken's board of directors and audit committee. It was not well known that Harken was losing money at that time, as they had fraudulently hidden the losses from the public by misstating profits (as eventually ruled by the Securities Exchange Commission). Sound familiar?
Bush failed on four occasions to completely report his sales of Harken stock as an insider, as required by the SEC, for up to 8 months. While Bush was a director of Harken he sold two-thirds of his shares. Just a few weeks later Harken's shares tumbled in value when bad news about earnings was publicly announced. The SEC considered but declined prosecution, stating that Bush's father being President was given no consideration. It didn't hurt, I'm sure, that the SEC general counsel during the investigation was James Doty who had previously served as Bush's attorney in the Texas Rangers purchase. James Doty was previously and currently is a member of the Dallas law firm Baker Botts. That's the same Baker as in James Baker who served under Bush I as Secretary of State, and represented Bush Jr. in the Florida election debacle. Circumstantial but revealing. The swinging door between business and government has been so active as to wear out the hinges.
Failure to report the stock transaction is only a minor point to the story. The point is that Harken faked their earnings and losses to keep the price of their stock higher. When the bad news was reported, the public is the one who paid the price. Harken stock was a major part of young Bush's personal wealth. Bush was on the audit committee of Harken. One has to also take into consideration that all this occurred while Bush was hobnobbing with Ken Lay of Enron. Suggestions by Bush that he didn't know about the losses is as believable as Ken Lays's testimony that he didn't know what was going on with Enron.
It's amazing that it took so long for the retelling of the Harken story to reach the mainstream press. It recently appeared in Paul Krugman's column in the New York Times, on July 2nd, 2002 -- "Everyone Is Outraged", which has started the other media to look into it as well. Suggestions by the Bush administration that the Democrats are behind this latest news is, frankly, giving too much credit to the Democracts.
For years, a lot of people have been labeling Ralph Nader as a kook because of his railing against corporate crime. The current headlines that are dominated by Enron, WorldCom, Adelphia, Xerox, etc. are proving Mr. Nader right on the money. Perhaps Mr. Nader is not presidential timber but he deserves to be listened to and not dismissed lightly. Remember, he is the one who cleaned up the auto industry and perhaps he can do the same for our government.
After a bumpy start in life, Bush parlayed his "success" with Harken into the floundering Texas Rangers baseball team. He turned the ball team into a "success" with a political sweetheart stadium deal, and then on to the Governorship of Texas and Presidential candidate.
We are given many chances in life to rectify past mistakes, but it is often the first one that determines whether we will walk the path of integrity or deception. If we want a silk purse, we must sew one out of silk to be able to live that life of integrity.
About the Author
Robert Jennings is the co-publisher of InnerSelf.com, a platform dedicated to empowering individuals and fostering a more connected, equitable world. A veteran of the U.S. Marine Corps and the U.S. Army, Robert draws on his diverse life experiences, from working in real estate and construction to building InnerSelf with his wife, Marie T. Russell, to bring a practical, grounded perspective to life’s challenges. Founded in 1996, InnerSelf.com shares insights to help people make informed, meaningful choices for themselves and the planet. More than 30 years later, InnerSelf continues to inspire clarity and empowerment.
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