MESSAGE
| DATE | 2005-07-01 |
| FROM | From: "Inker, Evan"
|
| SUBJECT | Subject: [NYLXS - HANGOUT] Microsoft Getting Closer to the Fire
|
Microsoft Getting Closer to the Fire
Posted by tadelste on Jun 27, 2005 9:35 AM
By LXer Mail this story
Web version
http://lxer.com/module/newswire/view/38800/index.html
A dispute that has kept the House Ethics Committee from considering Majority
Leader Tom DeLay's activities may have ramifications for Microsoft. When one
begins to untangle the remarkable political organization created by
Microsoft and lobbyists Preston, Gates Ellis et al, you find some uncanny
coincidences.
The ethics committee, the House's mechanism for enforcing rules for members,
has operated for exactly one day since Congress convened in January. In the
meanwhile, a former Preston, Gates and Ellis lobbyist, Jack Abramoff has
become the target of several serious investigations and the focus of the
D.C. media.
Abramoff left Preston Gates in 2000. Even so, he's a problem for the firm's
management. Reports have surfaced questioning Abramoff's financing of travel
for lawmakers, especially House Majority Leader Tom DeLay (R-Texas). All of
the spending under investigation happened while Abramoff worked at Preston
Gates.
The Washington Post reported that airfare to London and Scotland in 2000 for
House Majority Whip Tom DeLay (R-Tex.) was charged to an American Express
card issued to Jack Abramoff. House ethics rules bar lawmakers from
accepting travel and related expenses from registered lobbyists.
How Does This Affect Microsoft
Many people believe that Microsoft helped construct Preston, Gates & Ellis
as an alter ego for the Business Software Alliance. The firm of William H.
Gates Sr., father of Microsoft co-founder Bill Gates, merged with Preston in
1990. The later old line Seattle firm started when Harold Preston located in
Seattle from Iowa in 1883 and began practicing law. Jim Ellis joined Preston
in 1949.
By getting William Gates Sr. together with Preston, Microsoft suddenly had
an organization that looked like a law firm and not the legal department of
Microsoft. The Seattle firm also had a small office in Washington, D.C.
which helped Microsoft and the Business Software Alliance reach out and
affect government policy.
But, Preston, Gates & Ellis needed to show some lobbying fees and clients
other than Microsoft and the BSA. Adding Abramoff did just that.
Additionally, he had his own clients and did not have to work on any
Microsoft or BSA business.
Bad Choice
Adding Abramoff accomplished the goal of diversifying Preston, Gates & Ellis
revenue and client base. But, Jack Abramoff didn't fit the culture. While
most lobbyists seem happy with a six figure salary, Jack made millions
annually. He also could be considered a maverick.
Now, the partners of Preston Gates must deal with the consequences of
discovering their firm is listed on the invoice for Tom DeLay's plane fare
to Scotland. They may also have to consider how deep and far the probe of
their firm may go. For example, both Preston Gates and the Business Software
Alliance are listed as contributors to the campaign of Senator Patrick J.
Leahy, the Chairman of the Senate Judicial committee that ruled on the
Government's settlement with Microsoft.
Meanwhile House majority leader Tom DeLay says that expenses on his trip
were paid by a nonprofit organization and that the financial arrangements
for it were proper. He contends that he had no way of knowing that any
lobbyist financially supported the trip, either directly or through
reimbursements to the nonprofit organization.
Non-profit organizations, foundations, multiple corporate entities seem like
the products of a firm like Preston, Gates & Ellis. Someone will want to
look into those issues. For example, on June 7, 2005, Bill Gates profile on
CampaignMoney.com shows that he's contributed $59,100 since 1999 to all
political candidates. Of course, that's personal money. Given the tens of
millions of dollars attributed to Microsoft in campaign contributions, it
might look like some kind of front organizations have made contributions
beneficially for the welfare of the richest man in the world.
And the connection between Tom DeLay and Jack Abramoff: DeLay helped defeat
a bill that would tax Preston Gates clients - American Indian casinos. You
have to also wonder if those casinos used Microsoft Office.
Stay Tuned
As they say around my part of the country, there's no telling what you might
see as the days start to pass. For sure, the media won't let the Tom Delay
story go. Further, the guy blocking the committee hearings is the
representative from the state of Washington. Is that just another
coincidence? Perhaps it is.
****************************************************************************
This message contains confidential information and is intended only
for the individual or entity named. If you are not the named addressee
you should not disseminate, distribute or copy this e-mail.
Please notify the sender immediately by e-mail if you have received
this e-mail by mistake and delete this e-mail from your system.
E-mail transmission cannot be guaranteed to be secure or error-free
as information could be intercepted, corrupted, lost, destroyed, arrive
late or incomplete, or contain viruses. The sender therefore does not
accept liability for any errors or omissions in the contents of this
message which arise as a result of e-mail transmission.
If verification is required please request a hard-copy version.
This message is provided for informational purposes and should not
be construed as an invitation or offer to buy or sell any securities or
related financial instruments.
GAM operates in many jurisdictions and is
regulated or licensed in those jurisdictions as required.
****************************************************************************
|
|
