Tuesday, April 7, 2015

Jeb Bush Taken by Lure of InnoVida

Consider what Florida Governor did after retiring from public service in January 2007.  He accepted a Board slot with Tenet Healthcare in March.  Late summer found him in the employ of Lehman Brothers private equity division.

August 27, 2007:  WSJ reported "Jeb Bush:  Lehman's Secret Weapon"

This hiring would lend credibility to Jeb's business acumen. 

Private-equity firms hire politicos and former corporate honchos all the time to help them open doors to deals, as well as to manage government relations and the companies in their portfolios.

WaPo reported on another Bush 2007 business venture, consulting with InnoVida before joining their board of directors.  Here's the timeline:

Nov. 16, 2007: Jeb Bush signs contract to serve as consultant to InnoVida for $15,000 a month, plus reasonable expenses, according to documents filed with the federal bankruptcy court in Florida.

August 2008: Bush receives 250,000 stock options as a “key manager,” according to evidence submitted in federal court as part of a criminal prosecution of InnoVida executives.

Latter part of 2008: Bush joins the board of InnoVida.

Sept. 12, 2009: Bush e-mails Chief Financial Officer Craig Toll and asks for cash flow statements and a copy of the company’s board of directors insurance.

Sept. 21, 2009: Toll sends him a “proforma unaudited cash flow statement” and says he will get back to him about the insurance.

July 9, 2010: Toll e-mails board to say that because of the postponement of the last board meeting, the company’s financials had not been distributed. He sends along unaudited statements.

Sept. 19, 2010: Bush resigns from InnoVida and returns his $15,000 consulting fee from the previous month.

March 1, 2011: Judge places InnoVida in receivership after company does not turn over financial records. 
March 2013: Bush agrees to return $270,000 out of $469,000 paid for consultancy services, according to documents filed in connection with the bankruptcy case..

It took businessman Jeb Bush nearly three years to realize he'd been had.  This timeline does not show the production of audited financial statements.  A consultant, key manager and board member would be expected to note this deficiency and resign from InnoVida.  Jeb did so after thirty four months. 

Bush’s Coral Gables firm, Jeb Bush and Associates, agreed to pay back $270,000 to the bankruptcy court as part of a trustee’s efforts to “claw back” money owed to creditors and others in the Chapter 7 liquidation proceedings. Unlike other settlements in the case, Bush’s agreement included a “non-disparagement” clause that limits what the bankruptcy trustee can say about the former governor.

Read more here: http://www.miamiherald.com/news/local/community/miami-dade/article8030382.html#storylink=cpy
Image must be managed and the Bush name remain as pristine as possible.  The PEU class demands it.