Teneo

December 03, 2011 – Opinion: Grifters-in-Chief

Kimberly Strassel (Credit: Wall Street Journal)

By Kimberley Strassel

(…) “The memo came near the end of a 2011 review by law firm Simpson Thacher & Bartlett into Clinton Foundation practices. Chelsea Clinton had grown concerned about the audacious mixing of public and private, and the review was designed to ensure that the foundation didn’t lose its charitable tax status. Mr. Band, Teneo boss and epicenter of what he calls “ Bill Clinton, Inc.,” clearly felt under assault and was eager to brag up the ways in which his business had concurrently benefited the foundation, Clinton political causes and the Clinton bank account. The memoed result is a remarkably candid look at the sleazy inner workings of the Clinton grifters-in-chief.
The cross-pollination is flagrant, and Mr. Band gives example after example of how it works. He and his partner Declan Kelly (a Hillary Clinton fundraiser whom Mrs. Clinton rewarded by making him the State Department’s special envoy to Northern Ireland) buttered up their clients with special visits to Bill’s home and tête-à-tête golf rounds with the former president. They then “cultivated” these marks ( Coca-Cola, Dow Chemical, UBS) for foundation dollars, and then again for high-dollar Bill Clinton speeches and other business payouts.

Teneo’s incestuous behavior also included Mrs. Clinton’s State Department. The Band memo boasts that Mr. Kelly (while he was Mrs. Clinton’s State envoy) introduced the then-head of UBS Wealth Management, Bob McCann, to Bill Clinton at an American Ireland Fund event in 2009. “Mr. Kelly subsequently asked Mr. Mccann [sic] to support the Foundation, which he did . . . Mr. Kelly also encouraged Mr. Mccann [sic] to invite President Clinton to give several paid speeches, which he has done,” reads Mr. Band’s memo. UBS ultimately paid Bill $2 million.

American Ireland Fund meanwhile became a Teneo client, and made Mr. Kelly (of former State envoy fame) a trustee, where he “ensured that the AIF is a significant donor to the Foundation.” AIF then bestowed upon Mrs. Clinton a major award on her final trip to Northern Ireland in 2012, in an event partly sponsored by . . . Teneo.

Not that this is all one way. Mr. Band let slip just how useful all these arrangements were for Teneo, too, when he backhandedly apologized in the memo for hosting 15 client meetings in a hotel room rented by the Clinton Global Initiative.

The memo removes any doubt that the foundation is little more than an unregistered super PAC working on the Clintons’ behalf. Donors to the charity are simultaneously tapped to give Bill speech requests and other business arrangements, including the $3.5 million he was paid annually to serve as “honorary chairman” of Laureate International Universities. Mr. Band’s memo also notes his success at getting donors to “support candidates running for office that President Clinton was supporting.” (Read more: Wall Street Journal, 10/27/2016) (Simpson, Thacher & Bartlett LLC “Governance Review” 12/03/2011)

2009 – Doug Band’s new corporate consulting firm, Teneo, is closely tied to the Clinton Foundation

Douglas Band (Credit: McMullan /Cosipa News)

(…)”As the foundation grew, so did the outside business ventures pursued by Mr. Clinton and several of his aides.

None have drawn more scrutiny in Clinton circles than Teneo, a firm co-founded in 2009 by Mr. Band, described by some as a kind of surrogate son to Mr. Clinton. Aspiring to merge corporate consulting, public relations and merchant banking in a single business, Mr. Band poached executives from Wall Street, recruited other Clinton aides to join as employees or advisers and set up shop in a Midtown office formerly belonging to one of the country’s top hedge funds.

By 2011, the firm had added a third partner, Declan Kelly, a former State Department envoy for Mrs. Clinton. And Mr. Clinton had signed up as a paid adviser to the firm.

Teneo worked on retainer, charging monthly fees as high as $250,000, according to current and former clients. The firm recruited clients who were also Clinton Foundation donors, while Mr. Band and Mr. Kelly encouraged others to become new foundation donors. Its marketing materials highlighted Mr. Band’s relationship with Mr. Clinton and the Clinton Global Initiative, where Mr. Band sat on the board of directors through 2011 and remains an adviser. Some Clinton aides and foundation employees began to wonder where the foundation ended and Teneo began.

Those worries intensified after the collapse of MF Global, the international brokerage firm led by Jon S. Corzine, a former governor of New Jersey, in the fall of 2011. The firm had been among Teneo’s earliest clients, and its collapse over bad European investments — while paying $125,000 a month for the firm’s public relations and financial advice — drew Teneo and the Clintons unwanted publicity.

Mr. Clinton ended his advisory role with Teneo in March 2012, after an article appeared in The New York Post suggesting that Mrs. Clinton was angry over the MF Global controversy. A spokesman for Mr. Clinton denied the report. But in a statement released afterward, Mr. Clinton announced that he would no longer be paid by Teneo.

(…) Mr. Band left his paid position with the foundation in late 2010, but has remained involved with C.G.I., as have a number of Teneo clients, like Coca-Cola, Dow Chemical and UBS Americas. Standard Chartered, a British financial services company that paid a $340 million fine to New York regulators last year to settle charges that it had laundered money from Iran, is a Teneo client and a sponsor of the 2012 global initiative.” (Read more: New York Times, 8/13/2013)