10/20/2013
by Kevin Ryan

Yesterday, Hillary Clinton offered a rousing endorsement of “longtime family friend” Terry McAuliffe in his second run for Governor of Virginia. McAuliffe certainly has been a good friend to the Clintons, having once made them a $1.35 million gift which, after becoming a scandal, turned into a loan. But the most interesting parts of McAuliffe’s history often go unnoticed, including his links to the security upgrades at the World Trade Center (WTC) in the late 1990s.


One of the primary companies involved in the security upgrades for the WTC was Ensec International, founded by Charles Finkel. Ensec’s Florida subsidiary had an office on the 33rd floor of the North Tower. At the same time, Finkel was an export sales executive for a company called Engesa, a manufacturer of tanks and other military vehicles for Operation Desert Storm. Engesa was a Saudi-approved supplier.

Ensec’s responsibility at the WTC involved setting up a new system for securing the basement levels, particularly in the parking garages. It was reported that the access control system used was manufactured and installed by Ensec. The system included proprietary software, proximity card readers and vehicle identification tags for all registered vehicles. The system also included cameras, located “in critical locations within the complex, such as machine rooms, computer areas, visitor areas and other sensitive locations.”

Lockheed Martin subcontracted the PANYNJ work to Ensec in November of 1996.This was the same time that Carlyle Group employee and Iran-Contra suspect Barry McDaniel was hired to run operations for the highly suspicious WTC security contractor Stratesec. And just as Ensec obtained the contract to work alongside McDaniel and Stratesec, it added Terry McAullife as a director.

Before joining Ensec, McAuliffe had been involved in a number of suspicious business dealings. For example, he was linked to Teamster related corruption.And he was also involved in a lawsuit regarding Loral Space, a company investigated for collaborating with and giving secrets to the Chinese for use in satellite and intercontinental ballistic missile programs.

The charges against McAuliffe in the Loral Space scandal were that he agreed “to participate in this scheme to sell seats on taxpayer-financed foreign trade missions and other government services in exchange for campaign contributions to the Democratic National Committee (DNC).” McAuliffe also “played a central role in selecting trade mission participants and, on information and belief, securing other favorable treatment from the Clinton Administration for Defendant Loral” It was also reported that McAuliffe “prominently figured among those selected for participating in the high-profile Commerce Department trade mission to China was Defendant Schwartz, who would go on to become the single largest contributor to the DNC.”Bernard Schwartz was the billionaire CEO of Loral.

The CEOs of Hughes Aircraft, Loral, and Lockheed co-wrote a letter to President Clinton, in October 1995, asking the president to “transfer all responsibility for commercial satellite export licensing to the Commerce Department.” Hughes was run by James Abrahamson at the time. Abrahamson would go on to be a director at Stratesec and later, with James Clapper, at satellite spy company GeoEye. Hughes, Loral, and Lockheed ended up paying enormous fines for illegal exports of advanced missile technology to China, and Hughes was charged with 123 counts of national security violations. But in 1996, Clinton did move oversight of the satellite exports to the Department of Commerce and the three CEOs thanked him publicly.

McAuliffe was linked to another company that was mired in scandal―Global Crossing. It was reported that McAuliffe purchased $100,000 in Global Crossing stock before the company went public and cashed out several years later for $18 million (some reports put it at a mere $8 million). Richard Perle was a lobbyist for Global Crossing, which was a partner in several deals with the Chinese company Hutchison Whampoa, called an “arm of the PLA [People’s Liberation Army].” Li Ka-Shing was the Chinese billionaire owner of Hutchison who invested in firms owned by Winston Partners and employed Winston cofounder Marvin Bush’s brother, Neil Bush, as a consultant.

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