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Today's Stories January 24, 2008 JoAnn Wypijewski January 23, 2008 David Rosen David Isenberg Farzana Versey Paul Craig
Roberts Alan Farago Allan Nairn Kenneth Couesbouc Niranjan Ramakrishnan Michael Donnelly Norman Solomon Website of the Day
January 22, 2008 Paul Craig
Roberts JoAnn Wypijewski Al Giordano Felice Pace Paul Wolf Robert Weissman Dave Lindorff Marjorie Cohn Richard Neville Don Fitz /
Zaki Baruti Ben Terrall Sam Husseini Website of
the Day
January 21, 2008 Kevin Alexander
Gray Linn Washington,
Jr. Pam Martens David Macaray Uri Avnery Omar Barghouti Joe DeRaymond B.R. Gowani Shepherd Bliss Jean-Guy Allard Dan Bacher Website of
the Day January 19 / 20, 2008 Alexander Cockburn Saul Landau China Hand Conn Hallinan Ron Jacobs Dave Lindorff Andy Worthington Paul Armentano Seth Sandronsky Michael Donnelly Patrick Irelan Martha Rosenberg Sherwood Ross David Michael
Green James Rothenberg Daniel Gross Peter N. Carroll Susie Day Paul Krassner Poets' Basement Website of the Day
January 18, 2008 Allan Nairn Ralph Nader Joanne Mariner Alan Farago P. Sainath R.F. Blader Andy Worthington John Jonik Brian McKenna Daoud Kuttab Website of the Day
January 17, 2008 Paul Craig
Roberts Christopher
Brauchli Robert Fantina Patrick Irelan Paul A. Moore Stephen Lendman Beena Sarwar Walter Brasch Brenda Norrell Adam Federman Website of the Day
January 16, 2008 Jeffrey St.
Clair Franklin Lamb Julian Sanchez Sharon Smith Allan Nairn Ayesha Ijaz
Khan Andy Worthington Richard Behan Website of the Day
January 15, 2008 Andrea Peacock Wajahat Ali Joe Bageant Ralph Nader John Ross Elaine Cassel Peter Morici Beena Sarwar Robert Weissman Binoy Kampmark Dave Zirin Website of
the Day
January 14, 2008 Ishmael Reed Roger Morris Uri Avnery Mike Whitney Allan Nairn William Blum Alan Farago David Macaray Eva Liddell Zoe Blunt Website of the Day
January 12 / 13, 2008 Andrew Cockburn Saul Landau Corey D. B. Walker Col. Dan Smith Eric Toussaint Ron Jacobs Fred Gardner Stan Cox Jacob G. Hornberger Ramzy Baroud Joseph Grosso David Díaz-Arias Stacey Warde Dan Bacher Michael Dickinson Website of
Weekend
January 11, 2008 Dave Lindorff Paul Craig
Roberts Andy Worthington Kenneth Couesbouc Jeff Ballinger Christopher
Brauchli Manuel Garcia, Jr. Andrew Silverstein Marwan Bishara Robert Weissman Patrick Irelan Website of
the Day
January 10, 2008 Alexander Cockburn Bob Wing Michael Donnelly David Macaray China Hand Ayesha Ijaz Khan Rannie Amiri Website of the Day
January 9, 2008 Cockburn /
St. Clair Dave Lindorff John Chuckman James Bovard Alan Farago Russell Mokhiber William S. Lind Peter Morici Josh Reubner Mike Roselle Website of the Day
January 8, 2008 Paul Craig
Roberts Russell Mokhiber Robert Fantina Dave Zirin Shamako Nobel John Ross Brenda Norrell Laura Carlsen Patrick Irelan Evelyn J. Pringle Jonathan M.
Feldman Michael Dickinson Website of
the Day
January 7, 2008 Chris Floyd John Blair Uri Avnery Andy Worthington Binoy Kampmark David Macaray Ralph Nader Michael Donnelly Ron Jacobs Gideon Levy Dave Lindorff Website of
the Day
January 5 / 6, 2008 Douglas Valentine Kevin Young Richard Rhames Saul Landau Marc Lynch Robert Fantina Donna Volatile Jelle Bruinsma Bob Sutcliffe Harvey Wasserman Missy Beattie David Swanson Jacob Hornberger Shepherd Bliss Ron Jacobs Poets' Basement Website of the Weekend
January 4, 2008 Cockburn /
St. Clair Jonathan Cook Paul Craig Roberts Stan Goff Dave Lindorff Niranjan Ramakrishnan Allan Nairn Joshua Frank Peter Morici Mary McInnis Website of the Day
January 3, 2008 Fatima Bhutto Pam Martens Joanne Mariner Zoltan Grossman David Domke Norman Solomon Nikolas Kozloff Jacob G. Hornberger Martha Rosenberg Russell Means Website of the Day
January 2, 2008 Jeff Taylor M. Shahid Alam Gary Leupp Paul Craig Roberts Heather Gray Fred Gardner David Macaray Benjamin Dangl
January 1, 2008 Iain A. Boal B. R. Gowani Shahid Mahmood Linn Washington,
Jr. Harvey Wasserman John Ross Website of the Day
December 31, 2007 Alexander Cockburn Tariq Ali Liaquat Ali Khan Wajahat Ali Robert Fisk Ajai Sahni Marwan Bishara Uri Avnery Mark T. Harris Brenda Norrell Website of the Day
December 29 / 30, 2007 Alexander Cockburn Tariq Ali Fawzia Afzal-Khan Gary Leupp China Hand Jacob Hornberger John Chuckman Missy Beattie Ralph Nader Fidel Castro Robert Fantina Greg Moses Catherine Lutz Kristin Van
Tassel Kim Nicolini Phyllis Pollack Poets' Basement Website of
the Weekend
December 28, 2007 Farzana Versey Wajahat Ali Binoy Kampmark Ayesha Ijaz
Khan Anthony DiMaggio Ray McGovern Jim Goodman Ron Jacobs Russell Hoffman John Murphy Website of the Day
December 27, 2007 Dilip Hiro Murtaza Shibli Stephen Soldz Bill Quigley Paul Craig Roberts Omer Subhani Marjorie Cohn Allan Nairn Jacob G. Hornberger Norman Solomon Patrick Irelan Ben Tripp Website of the Day
Charles Tripp Paul Armentano Rannie Amiri Stanley Heller John Walsh Martha Rosenberg Norman Madarasz Website of
the Day
December 25, 2007 Patrick Cockburn December 24, 2007 Andrea Peacock Tariq Ali Uri Avnery Jill Jameson Steve Melendez Mike Whitney Chuck Munson John Walsh Farzana Versey Richard Neville Website of the Day
Alexander Cockburn Ralph Nader Andy Worthington Ahmad Faruqui Bill Moyers Rev. William
E. Alberts Timothy J. Freeman Anthony DiMaggio Fred Gardner Paul Krassner Seth Sandronsky William Loren
Katz Michael Dickinson Ron Jacobs David Vest Poets' Basement Website of the Weekend
December 21, 2007 John Ross Jacob Hornberger Dick J. Reavis Jeff Cohen
Peter Morici Jack McCarthy Raúl Zibechi Steve Early David Macaray Patrick Bond Lakota Freedom Delegation Website of
the Day
December 20, 2007 David Rosen Alan Farago Laura Carlsen Ashley Dawson Wayne Smith Website of
the Day
December 19, 2007 Saul Landau Paul W. Lovinger Norman Solomon Dave Zirin Marjorie Cohn Sen. Russell
Feingold Sonja Karkar Anthony Papa Christopher Ketcham Davey D Website of
the Day
December 18, 2007 R. F. Blader George Wuerthner Steven Higgs Vijay Prashad David Macaray Ralph Nader Eva Liddell Martha Rosenberg Dave Lindorff Peter Morici Website of
the Day
December 17, 2007 Mike Whitney Tom Barry Uri Avnery Greg Moses Allan Nairn Patrick Bond Stephen Lendman Charles Jonkel Laray Polk Stephen Fleischman December 15 / 16, 2007 Peter Linebaugh Howard Zinn Standard Schaefer Raymond J.
Lawrence Alan Farago Saul Landau Jenna Orkin Ahmad Samih
Khalidi Robert Fantina Missy Comley
Beattie Ramzy Baroud James L. Secor Elijah Wald Website of
the Weekend
December 14, 2007 JoAnn Wypijewski John Ross Jacob Hornberger Andy Worthington Allan Nairn Dave Zirin Dave Lindorff Misty MacDuffee Ben Terrall Dr. Mustafa
Barghouthi Website of the Day
December 13, 2007 Paul Craig
Roberts Mike Whitney Ron Jacobs Norman Solomon Peter Morici Sandy Mayes Franklin Lamb Jacob Hornberger Nadim Rouhana Dave Zirin Website of the Day
Allan
Nairn Alan
Farago Ray
McGovern Winslow
T. Wheeler Evan
Jones James
Petras Joel
Hirschorn Joshua
Frank Sherry
Wolf Dan
Bacher Website
of the Day
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January 24, 2008 Hillary's ArchivesShe Wants to Talk About Dirty Legal Dealings? Remember the Nursing Home Scam?By ALEXANDER COCKBURN In their last debate in South Carolina Hillary Clinton questioned Barack Obama about his ties to a real estate developer As the Washington Post reports it earlier this week,
If Hillary Clinton wants to start excavating legal work and slimy clients, she will soon be buried in the vast mountain of manure in the archives of her old Arkansas firm, Rose Law, a very powerful institution in the state of Arkansas, where corporate and political axes of power met, to the great profit of the firm's partners, including Hillary Clinton. Here's just one case, which I wrote about in The Nation in 1994. where Mrs Clinton and her firm were central to a vast and methodical scheme of profiteering-gouging tax- payers and, above all, the defenseless residents of nursing homes in four states, including Arkansas. JoAnn Wypijewski and I reconstructed the story here with the help of Roy Drew, a private stock analyst working in Little Rock, who unearthed the scandal. Nursing home ripoffs and the Rose Law Firm led us not only to Hillary Clinton but to other familiar White House names, most prominently associate White House counsel William Kennedy; also to the moneyma- chine set up by Bill Clinton when he was still ,Governor of Arkansas-the Arkansas Develop- ment Finance Authority, whose former chief is now ensconced in the US. Agriculture Depart- ment, having informed us often enough in 1992 that he was a man totally independent of the Governor. Bill sat in the Governor's mansion in Little Rock, ultimate arbiter of the pools of money that could be dispensed'by ADFA in the form of long-term loans financed through the sale of tax-exempt bonds. A few blocks away sat his wife, in the law firm setting up deals, that called on that money. The world of Bill and Hill , disclosed by.the saga of Bever- ly Enterprises, one of the largest owners bf nursing homes in America and until January of this year part of the vast invest- ment portfolio of Arkansas's Stephens Inc., offers us impor- tant truths about the present incumbents of the White House. These days, questioned about the Whitewater/Madison Guar- anty imbroglio, the First Couple seek to give the impression of a pair of babes, venturing a modest investment and left with nothing to show but red ink. This is nonsense. Far from being hayseeds in a Southern bacliwater, Bill and Hillary were players in the politico-financial fast lane. Sometimes the advocates of single-payer health in- surahce wonder why self-styled populists like Bill and Hillary opted for "managed care," a honeypot for insurance compa- nies and law firms. The story of Beverly Enterprises opens a window to understanding. In 1989, with debts of $850 million, Beverly Enterprises was facing bankruptcy. Its strategy for survival was to sell off some of its 845 nursing homes throughout the country as quickly as possible for as much as possible. Forty-five of those homes were in Iowa, and in August of 1989 Beverly sold them to Ventana Investments, a company owned by a man named Bruce Whitehead, an entrepreneur/hustler from Amarillo, Texas. But Whitehead didn't make a straight deal. He also set up a charity called Mercy Health Initiatives, whose nonprofit status he used to wheedle $86 million in tax-exempt bonds out of the Iowa Finance Authority. When Whitehead approached the authority for the money, he insinuated that if the state did not comply he would pulI out of the deal and the nursing homes would most likely close, tossing some 3,000 old folks out of their beds. The state came through with the money. Whitehead said he needed to buy the homes, and Mercy Health threw in $6 million in promissory notes for fees to Whitehead and the underwriters, bringing the tab for the deal to $92 mil- lion. This transaction gave Beverly an immediate cash infusion of $10 million. It landed Whitehead a profit of $6.5 million, personal ownership of four homes worth $1.8 million and a $5 million contract for a construction company he owned. As an Iowa District Court later determined, Whitehead had grossly inflated the value of the homes; which were actually worth $47 million. And while he and Beverly skipped off with their profits (Whitehead no longer has any tie to the homes), Mercy Health was burdened with debt that added as much as $6 million a year to the cost of health care at the homes. This in turn was shouldered by the old people, who saw their daily charges go up by as much as 14 percent. Mercy Health was itself less a charity than a shell, an entity that Iowa Judge Gene Needles said "served no legitimate pur- pose and was used primarily to obtain tax-exempt financing, shield the parties using the facilities from liability and obliga- tions as owners and evade the payment of property taxes." He also called Beverly and Whitehead "unconscionable" profiteers. Judge Needles made that statement on September 13,1991, in a ruling favoring Iowa state tax assessors who had cha- lenged Mercy Health's tax-exempt status. He was upheld in that opinion by the Iowa Supreme ,Court on May 19, 1993, two months before Vince Foster died and around the time Hillary Clinton was blasting sectors of the health care industry for their "unconscionable profiteering." Foster and H.R.C. are not incidental to the story. Rose Law was up to its neck in the Iowa deal, and was contriving exact- ly the same outrageous piracy in Little Rock itself in 1989. In fact, Rose Law was responsible for putting together Beverly four-state bid to dump nursing homes, each case involving Whitehead and all similarly designed to get fast cash to the ailing company. If all four deals had gone through, the total transaction would have been worth $300 million, according to internal company documents disclosed in the discovery process for the court action in Iowa. Perhaps $3 million of that would have gone to Rose, with a sizable portion distrib- uted among its partners: Foster, Kennedy, Web Hubbell and Hillary Clin- ton among them. The company documents provide a projected schedule of how the deals were to have happened: in July of 1989, Arkan- sas; in August, Iowa; in September, Nebraska; and in October, South Dakota. Arkansas was to have been the first because, as Drew reasons, "that's where the political juice was." But all of Rose Law's manipulations in this arena were a secret in Arkansas in 1989. An election year was coming up, and newspapers there had long been in the habit of swiping at Hillary and her Rose colleagues for profiting from their association with the Governor. Sheffield Nelson, already an- nounced as an opponent of Clinton for the governorship, would have had rich sport pointing out that the Governor's wife and friends stood to gain handsomely from brokering an $82 million ADFA bond deal over Beverly's nursing homes. The Arkansas deal alone represented perhaps $SOO,OOO to Rose Law. So on paper in Arkansas, Beverly was not represented by Rose Law but by Joe Giroir, formerly a managing partner of the firm but at the time in his own practice. In all the papers for the ADFA deal, Rose Law is never mentioned as Beverly's attorney, even thoughthe documents discovered through legal action in Iowa clearly show Rose Law, and William Kennedy specifically, as handling both deals. The deal in Arkansas was structured just as it was in Iowa: Beverly was to sell its nursing homes via Ventana to Pride House Health Care, a charity created by Whitehead with no employees, no working assets and an appointed board of three people. To finance the deal, Whitehead went to ADFA for the $82 million in tax-exempt bonds. ADFA had been set up by Clinton in 1985 ostensibly to stimulate development and in- vestment in Arkansas. A prototypical piece of "remaking gov- ernment," it was a private corporation that operated within the state structure. Clinton appointed the board, which served at his pleasure-but without accountability to the taxpayers and without oversight by the Federal Reserve, F.D.I.C. or any out- side government authority. On the ADFA board in 1989 was James Stobaugh, who was then the president of Worthen Bank in Pine Bluff, Arkansas. Also on the board was Bobby Ste- phens, no relation to the scion of Stephens Inc., Jackson Ste- phens, but nicely positioned as an executive vice president of Beverly Enterprises. Neither Stobaugh nor Stephens recused himself from the vote to issue the bonds to Pride House, a vote that was unanimous. As Drew says, "The whole thing had to be wired for a guy from Amarillo to walk into Arkansas and get them to vote unanimously on an $82 million bond deal." As it happened, the Arkansas deal that should have gone so smoothly hit the skids. First, there was a shift in under- writers, throwing off the deal's timing and extending its proc- ess. Second, Drew discovered Beverly's prospectus to ADFA and started asking questions about why a middleman who had nothing to recommend him and who had set up 'a company that was clearly a shell should be the beneficiary of state lar- gesse. Drew didn't know at the time that Rose was represent- ing Beverly, but he knew that the conflicts of interest in the Stephens-Beverly-ADFA nexus were thick, and the Arkansas Democrat-Gazette started pounding away at the story. Through it all, Bill Clinton said nothing. It was not until the state's attorney general accused Beverly of offering him a $100,000 bribe that the deal fell through. In December of 1989, Clinton was forced to nix the ADFA loan and made a statement about how Beverly et al. "tried to milk us like an old, full cow." Of course, back in '89 when Clinton was using his home- spun rhetoric io present himself as the state's guardian against corporate exploitation, he never let on that Rose Law was the forward guard for those exploiters. Since then, he and HiUary and anyone else who's asked from the firm have stonewalled questions about the case. Drew makes an apt observation: "The Rose Law Firm put this thing together, and if they were proud of what they were doing, why did they hide behind Joe Giroir?" Just how much money Rose Law
and its partners like Hil- lary stood to gain from these various
deals affecting the health care of thousands of old people is
a matter of speculation; as noted above, it might have been $3
million on the $300 mil- lion deal as originally envisaged. Drew
says, "If you need money and I'm a money finder and I'm
working for you, I'm going to take a point-that's 1 percent-at
!east, for finding you the money. Rose worked in Arkansas for
a long, long time on these deals. They had to work on all four
simultaneously, learn the law in all the states and figure out
their strategies for each; and they weren't working for free.
For some point of comparison, think of this. When Rose was working
for the F.D.I.C. against Frost & Co., which had put together
inaccurate audits on Madison Guaranty, they obtained a settlement
of $1 million for the government. Their fee on that was $400,OOO.
My understanding is that they separate these fees among the partners.
If Hillary Clinton made a buck-if she made even one dollar on
those nursing home deals-she shouldn't be on the stump talking
about unconscionable profits."
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