sexually molesting a teenager and of covering up molestation in the church. Giuliani Partners has stated that Giuliani "believes that Alan Placa has been unjustly accused", and that the firm has no plans to stop representing him.
The firm is privately held. Sources have placed Giuliani Partners' earnings at over $100 million in the five years through early 2007.
Another estimate shows it with annual revenues of $40 million and 55 employees. After stepping down as CEO and chairman, Giuliani retained a 30 percent equity stake in the partnership,
which paid him $4.1 million in 2006.
The firm's fortunes, which had always been dependent upon Giuliani's star power,
diminished due to Giuliani's absence during his campaign, which ended in late January 2008. Its client list and revenues decreased, and staff was reduced from about 60 to about 50 employees.
During the 2008 presidential election effort, Peter Powers was chairman and CEO of Giuliani Partners,
having replaced Giuliani
in June 2007,
ahead of the
2008 Rudy Giuliani presidential campaign. Peters was formerly a
deputy mayor of New York.
Giuliani subsequently returned to work at the firm, splitting time between it and the law firm
Bracewell & Giuliani Bracewell LLP is an international law firm based in Houston, Texas, that began in 1945. The firm has approximately 350 lawyers, and has United States offices in New York City, Washington, D.C., Hartford, San Antonio, Seattle, Dallas and Austin, as ...
.
The company specialized in consulting on energy-related matters.
In July 2008, Giuliani Partners announced it was diversifying via the creation of a
real estate
Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more genera ...
investment fund
An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group such as reducing the risks of the investment by a significant percentage. These advantages in ...
that would target foreign investors seeking to capitalize on the weak dollar and invest in New York and Washington, D.C. real estate.
The fund would be a collaboration with
Rockville, Maryland-based
Berman Enterprises Berman is a surname that may be derived from the German and Yiddish phrase ( ‘bear-man’)https://dbs.anumuseum.org.il/skn/en/c6/e250048/Family_Name/BERMAN or from the Dutch , meaning the same. Notable people with the surname include:
* Abba ...
.
By mid-2009, Giuliani Partners was still feeling the effects of Giuliani's ongoing political life, including the departure of former Giuliani chief of staff Anthony V. Carbonetti, who was working on possible Giuliani-related aspects of the
New York gubernatorial election, 2010
The 2010 New York gubernatorial election was held on Tuesday, November 2, 2010. Incumbent Democratic Party (United States), Democratic Governor David Paterson, elected as Lieutenant Governor of New York, lieutenant governor in New York gubernato ...
.
The firm's headquarters had been in
5 Times Square
5 Times Square is a 38-story office skyscraper at the southern end of Times Square in the Midtown Manhattan neighborhood of New York City. Located on the western sidewalk of Seventh Avenue between 41st and 42nd Street, the building measures ...
, at the south end of New York City's
Times Square
Times Square is a major commercial intersection, tourist destination, entertainment hub, and neighborhood in Midtown Manhattan, New York City. It is formed by the junction of Broadway, Seventh Avenue, and 42nd Street. Together with adjacent ...
, since its founding.
In 2010, the firm relocated to Manhattan to share office space with the New York office of Giuliani's other law partnership, Texas law firm
Bracewell & Giuliani Bracewell LLP is an international law firm based in Houston, Texas, that began in 1945. The firm has approximately 350 lawyers, and has United States offices in New York City, Washington, D.C., Hartford, San Antonio, Seattle, Dallas and Austin, as ...
.
The firm had further reduced its number of employees, and Bracewell & Giuliani became the former mayor's primary public business activity.
Client base
Giuliani Partners has been categorized by various media outlets as a
lobbying
In politics, lobbying, persuasion or interest representation is the act of lawfully attempting to influence the actions, policies, or decisions of government officials, most often legislators or members of regulatory agencies. Lobbying, whic ...
entity capitalizing on Giuliani's name recognition.
Clients of Giuliani Partners are required to sign
confidentiality agreement
A non-disclosure agreement (NDA) is a legal contract or part of a contract between at least two parties that outlines confidential material, knowledge, or information that the parties wish to share with one another for certain purposes, but wish ...
s that preclude commentary about the work the firm's work and fees.
Giuliani has refused to talk about his clients, services rendered, compensation received, or any details about the company.
One of Giuliani Partners' clients during this time was
Hank Asher
Hank Asher (May 9, 1951 – January 11, 2013) , an admitted
drug smuggler
The illegal drug trade or drug trafficking is a global black market dedicated to the cultivation, manufacture, distribution and sale of prohibited drugs. Most jurisdictions prohibit trade, except under license, of many types of drugs through ...
and millionaire founder of companies that perform electronic information gathering (
datamining) on individuals. According to a shareholder in the company, Asher hired Giuliani for his "influence with the federal government to enable Mr. Asher to take an active role in
Seisint
LexisNexis is a part of the RELX corporation that sells data analytics products and various databases that are accessed through online portals, including portals for computer-assisted legal research (CALR), newspaper search, and consumer informa ...
as a chief executive officer despite the allegations about his drug dealing". Giuliani helped Asher's company obtain $12 million in government grants.
After Asher's past was publicly revealed, he resigned from the company; Giuliani defended him to newspapers without mentioning that Asher was a paying client.
After Asher's resignation, investors in Seisint reported that Giuliani was paid US$2 million a year in fees, a commission on sales of Seisint products, and 800,000 warrants for Seisint stock, which would prove valuable when Seisent was sold to
Lexis Nexis
LexisNexis is a part of the RELX corporation that sells data analytics products and various databases that are accessed through online portals, including portals for computer-assisted legal research (CALR), newspaper search, and consumer inform ...
for $775 million. One investor sued the board, claiming that Giuliani's contributions had not been worth the large amount paid.
The Seisent database product that Giuliani Partners was to help market the Multistate Anti-Terrorism Information Exchange, and was criticized on
civil liberties grounds; within two years the program was disbanded.
In representing
Purdue Pharma
Purdue Pharma L.P., formerly the Purdue Frederick Company, is an American privately held pharmaceutical company founded by John Purdue Gray. It was owned principally by members of the Sackler family as descendants of Mortimer and Raymond Sackler ...
, maker of
OxyContin
Oxycodone, sold under various brand names such as Roxicodone and OxyContin (which is the extended release form), is a strong, semi-synthetic opioid used medically for treatment of moderate to severe pain. It is highly addictive and a commonly ...
, in a case against the
Drug Enforcement Administration
The Drug Enforcement Administration (DEA; ) is a Federal law enforcement in the United States, United States federal law enforcement agency under the U.S. Department of Justice tasked with combating drug trafficking and distribution within th ...
, Giuliani Partners negotiated a $2 million fine and no further penalty for what the DEA called "lax security" at plants that produced the drug, which the DEA said was being used as a recreational drug. The lead DEA investigator later said that Purdue Pharma escaped harsher penalties in the case because of Giuliani's connections to government officials.
Giuliani later represented Purdue Pharma in a recently settled case in which the DEA accused the company of marketing OxyContin by playing down its level of addictive properties. Giuliani met with government lawyers six times to help negotiate a settlement in the case.
Giuliani reached a deal to avoid a bar on Purdue Pharma doing business with the federal government.
''
Forbes
''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also r ...
'' reported in November 2006 that Giuliani Partners accepted fees from
penny stock
Penny stocks are common shares of small public companies that trade for less than one dollar per share.
The U.S. Securities and Exchange Commission (SEC) uses the term "Penny stock" to refer to a security, a financial instrument which represents ...
firms, made alliances that have gone nowhere, and formed pacts with businesses and individuals that have come under scrutiny by regulators and law enforcement officers. For instance, Giuliani Capital Advisors accepted 1.6 million warrants from Lighting Science Group at 60 cents, a fee of $150,000 and a promise to raise cash. The company went bankrupt, losing $412,000 on sales of $137,000 in the first part of 2006. A venture with
CamelBak
CamelBak is an American outdoor equipment company based in Petaluma, California, best known for its hydration products, such as hydration packs and water bottles. CamelBak is also a supplier of protective gear and other products to the U.S. mili ...
started out under Giuliani's consulting arrangement with $31 million in sales, but was run into the ground with various missteps, including having the disgraced
Bernard Kerik
Bernard Bailey Kerik (born September 4, 1955) is an American consultant and former police officer who was the 40th Commissioner of the New York Police Department from 2000 to 2001. As a convicted felon, he obtained a presidential pardon from Pre ...
sit on its board. ''Forbes'' said Giuliani's most controversial deal was throwing in with a 2004 project with Applied DNA Sciences. Its backer, Richard Langley Jr., had previously pleaded guilty to conspiracy to commit
wire fraud
Mail fraud and wire fraud are terms used in the United States to describe the use of a physical or electronic mail system to defraud another, and are federal crimes there. Jurisdiction is claimed by the federal government if the illegal activit ...
and
commercial bribery Commercial bribery is a form of bribery which involves corrupt dealing with the agents or employees of potential buyers to secure an advantage over business competitors. It is a form of corruption which does not necessarily involve government person ...
in another penny stock scam; another, Jeffrey Salzwedel, had been fined for making "unsuitable" stock recommendations to clients; and the brokerage firm Vertical Capital Partners, a third backer, had been penalized repeatedly for various securities violations.
Mexico City
Mexico City ( es, link=no, Ciudad de México, ; abbr.: CDMX; Nahuatl: ''Altepetl Mexico'') is the capital and largest city of Mexico, and the most populous city in North America. One of the world's alpha cities, it is located in the Valley of ...
hired Giuliani Partners to consult on its crime rate, hoping for a drop in crime like that which New York City had experienced in the 1990s. Giuliani toured the city for a day and Giuliani Partners produced a report analyzing ways in which crime could be reduced. However, in the year after the plan was implemented, crime dropped by only 1% and some city officials expressed regret at hiring Giuliani for a $4.3 million fee. Some called it a "$4 million publicity stunt".
Some of the recommendations that were put into place included using
breathalyzer
A breathalyzer or breathalyser (a portmanteau of ''breath'' and ''analyzer/analyser'') is a device for estimating blood alcohol content (BAC), or to detect viruses or diseases from a breath sample.
The name is a genericized trademark of the Br ...
s on drunk drivers and targeting "
squeegee men".
["In Mexico City, Few Cheers for Giuliani"](_blank)
nysun.com
''The New York Sun'' is an American online newspaper published in Manhattan; from 2002 to 2008 it was a daily newspaper distributed in New York City. It debuted on April 16, 2002, adopting the name, motto, and masthead of the earlier New York ...
, April 11, 2005. Accessed June 8, 2007.
Giuliani Partners has had contracts since 2005 with
Qatar
Qatar (, ; ar, قطر, Qaṭar ; local vernacular pronunciation: ), officially the State of Qatar,) is a country in Western Asia. It occupies the Qatar Peninsula on the northeastern coast of the Arabian Peninsula in the Middle East; it ...
's Ministry of the Interior, for security advice and consulting services.
These contracts were overseen by Minister
Abdullah bin Khalifah Al Thani
Abdullah bin Khalifa Al Thani ( ar, عبد الله بن خليفة آل ثاني; born 11 February 1958) was Prime Minister of Qatar from 29 October 1996 to 3 April 2007. He served as an advisor to the Emir and often represented him at ceremon ...
, a member of Qatar's royal family.
Giuliani Capital Advisors
On December 1, 2004 his consulting firm announced it purchased accounting firm
Ernst & Young
Ernst & Young Global Limited, trade name EY, is a multinational corporation, multinational professional services partnership headquartered in London, England. EY is one of the largest professional services networks in the world. Along with Delo ...
's investment banking unit. The new investment bank would be known as Giuliani Capital Advisors LLC and would advise companies on acquisitions, restructurings, and other strategic issues.
On March 5, 2007, due to his presidential campaign, Giuliani Capital Advisors was sold to
Macquarie Group
Macquarie Group Limited () is an Australian global financial services group. Headquartered and listed in Australia (), Macquarie employs more than 17,000 staff in 33 markets, is the world's largest infrastructure asset manager and Australia's ...
, an Australian financial group, for an amount that analysts said may approach $100 million.
"Giuliani sells bank in presidential campaign move"
FT.com
The ''Financial Times'' (''FT'') is a British daily newspaper printed in broadsheet and published digitally that focuses on business and economic current affairs. Based in London, England, the paper is owned by a Japanese holding company, Nikke ...
, March 5, 2007. Accessed March 5, 2007.
References
External links
Giuliani Partners LLC website
{{Rudy Giuliani
Consulting firms established in 2002
International management consulting firms
Security consulting firms
Rudy Giuliani
2002 establishments in New York City