Carlyle's Latest Bankruptcy: Medicaid Dental for Kids

The Tennessean reported:

A Nashville-based company that manages dental care centers in 22 states has filed for bankruptcy to restructure its debt and eventually attempt to sell its operations and assets.

Church Street Health Management LLC’s filing with the Middle Tennessee U.S. Bankruptcy Court this week listed roughly $85 million of assets and $300 million of liabilities.

How much goodwill did it take to get Church Street's sheet to balance?  Owners not only stretched the value of the company, they took liberties with kid's teeth and billing Uncle Sam.

That debt includes $150 million owed to its lenders and $17 million owed to several states and the U.S. Department of Justice under a settlement of charges that it billed Medicaid for unnecessary dental procedures for low-income children.

The settlement period runs from September 2006 to January 2010, all years under PEU ownership. Church Street's sins include:

(1) causing claims to be submitted by the Centers for reimbursement for performing pulpotomies that were not medically necessary and/or were performed in a manner that did not meet professionally-recognized standards of care

(2) causing claims to be submitted by the Centers for reimbursement for placing crowns that were not medically necessary and/or were performed in a manner that did not meet professionally-recognized standards of care

(3) causing claims to be submitted by the Centers for reimbursement for the administration of anesthesia (including, without limitation,nitrous oxide) that was not medically necessary, that was performed in a manner that did not meet professionally-recognized standards of care, and/or was administered by an unlicensed, non-certified, or otherwise unauthorized individual

(4) causing claims to be submitted by the Centers for reimbursement for extractions that were not medically necessary and/or were performed in a manner that did not meet professionally recognized standards of care

(5) causing the Centers to fail to obtain informed consent for certain dental procedures and services

(6) causing claims to be submitted by the Centers for reimbursement for fillings that were not medically necessary and/or were performed in a manner that did not meet professionally-recognized standards of care

(7) causing claims to be submitted by the Centers for reimbursement for sealants that were not medically necessary and/or were performed in a manner that did not meet professionally-recognized standards of care

(8)causing claims to be submitted by the Centers for reimbursement for radiographs (i.e., x-rays) that were not medically necessary, were taken in a manner that did not meet professionallyrecognized standards of care, and/or were taken by an unlicensed, non-certified, or otherwise unauthorized individual

(9) causing claims to be submitted by the Centers for reimbursement for behavior management techniques, including without limitation those techniques involving a papoose board, that were not medically necessary and/or were performed in a manner that did not meet professionally-recognized standards of care.

The above behavior resulted in a $24 million (plus interest) fine.  It seems Carlyle and Church Street are morally bankrupt as well as literally.

Did Church Street pay dividends or special distributions since The Carlyle Group invested in the company in September 2006?  If so, did PEU owners load Church Street with debt to fund payouts?

Medicaid considers management fees and capital cost reimbursable items on the acute side of health care.  Does it do the same for dental? 

How much did Carlyle, American Capital Strategies and Arcapita pull out of Church Street before it imploded?  Did any buy credit default swaps on Church's debt?  That could help ease the ache, but it would continue the morally bankrupt theme..

Private equity purports to be the savior of America's lopsided health care system.  Greed won't help, not in the least.

Update 1-29-13;  Senator Chuck Grassley lambasted Church Street, but gave their PEU owners a free pass.   Rubenstein et al oversaw an organization which traumatized children and bilked taxpayers 

Bankruptcy Cases: Disabled Poor vs. PEU

Bloomberg reported:

Monica Stitt, a 45-year-old woman, is unemployed, disabled, and living far below the poverty line. Still, a federal district judge decided in June that she could not cancel more than $37,000 in student debt in bankruptcy, because she hadn’t made a good-faith attempt at repaying the loans. 

Her entire income—about $10,000 per year, according to the judge—consisted of Social Security disability benefits and public assistance. She has been unemployed since 2008.

Stitt had borrowed $13,250, which had increased with interest to $37,400 by the time she filed for bankruptcy. After the bankruptcy judge ruled she couldn't shake the debt, the woman appealed to the U.S. District Court in Maryland without a lawyer, where a District judge upheld the bankruptcy court's ruling on June 9. 

The debtor didn’t meet the “undue hardship” test required by the bankruptcy code, U.S. District Judge Peter J. Messitte said in his opinion. Unlike credit card debt, student loans can almost never be discharged in bankruptcy. The only way people who have filed for bankruptcy can get rid of the debt is by proving that repaying them would impose "undue hardship" on their lives.

Contrast the bankruptcy case of Mrs. Stitt with The Carlyle Group's Church Street Health Management, a children's Medicaid dental provider.  It went bankrupt in 2012.  At the time Carlyle had nearly $40 billion in dry powder.

Church Street Health Management LLC’s filing with the Middle Tennessee U.S. Bankruptcy Court this week listed roughly $85 million of assets and $300 million of liabilities.

How much of that $300 million in liabilities came from a dividend recapitalization, where a private equity underwriter loads the affiliate with more debt, using proceeds to pay themselves a handsome dividend?  Church Street, a serial ethics violator, was booted out of Medicaid for five years.

The system allowed Church Street to reorganize in bankruptcy, dumping untold amounts of debt.  Mrs. Stitt wasn't so lucky.

Update:  Uncle Sam will garnish Social Security checks for citizens with old student loans, even if they're in their 80's and have dementia.  It's a profitable product line for the U.S. government. With annual returns of 23% Uncle Sam is in PEU territory.

Senators Slam PEU Dentistry

BusinessWeek caught up to the story I found months ago about Carlyle Group affiliate Church Street Management LLC:

Church Street may be abusing patients, “grossly overcharging the United States government in Medicaid reimbursement claims,” and focusing “more on achieving self- imposed quotas via assembly line service than proper patient care,” U.S. Senators Charles Grassley and Max Baucus told the company in a November letter copied to Carlyle co-founder William E. Conway Jr. 

I laughed as Senators Max Baucus and Chuck Grassley believe private equity is the solution to America's healthcare ills.  If you like what they did in dentistry, wait for PEU hospitals and health care.  They're here and spreading like tooth decay.

Carlyle Group is Deliberately ?

The Carlyle Group published an Annual Review and Corporate Citizenship Report.  The co-founders' letter mentioned LifeCare's bankruptcy and Synagro's equity write off.  They didn't mention Church Street Health Management, another Carlyle affiliate that went bankrupt in early 2012.

LifeCare lost 25 patients in the aftermath of Hurricane Katrina.  The hospital with the highest death toll warranted not one mention in Fran Townsend's Lessons Learned Report, enabling Carlyle to keep their good name.

Synagro bribed the wife of Rep. John Conyers D-MI, Monica Conyers.  Synagro declared bankruptcy last week.

Church Street Health Management settled with Medicaid for billing for unnecessary procedures for low income children.

ARINC received a 33 month ban from the World Bank for "procurement violations." 

Carlyle is deliberately different, causing heavy losses from poor management theory.  They will never learn.

Update 5-6-13:  The Baltimore Sun reported on the Synagro bankruptcy.  "Synagro has a contract with Baltimore to operate and provide equipment at Patapsco Wastewater Treatment Plant on Asiatic Avenue and Back River Wastewater Treatment Plant on Eastern Avenue.  The plants treat wastewater for the city, and Synagro recycles the byproducts for use as fertilizer and as an energy source, said Tom Becker, a company spokesman. The plants' assets, and wastewater treatment plants in Philadelphia and Sacramento, will be included in the sale to EQT but not in the Chapter 11 filing, the company said.

The Wrap: Know Your Wary Supplier

The Bush administration's import safety expert recently advised consumers to know their supplier. HHS Secretary Mike Leavitt encouraged people to buy from organizations they trust. He essentially reiterated the old maxim "buyer beware".

Two stories highlight different aspects of this modern dilemma. First, how does the consumer get information about the firms selling them goods, especially companies that aren't publicly traded. The British have a plan to address the problem of secretive private equity firms. CNN Money reported:

Private equity firms doing business in Britain should publish an annual report that details their structure and portfolio or keep this information updated on their Web site, according to the rules. Public companies bought for more than £300 million or firms that change private hands for more than £500 million should provide information about their ownership, as well as disclose details about the performance of their business. The guidelines are voluntary, but buyout firms that do not comply with them will be obligated to explain why they have not.

If a firm plans on shorting the consumer on quality goods or services, it seems they would be happy to stiff the general public as well. How does a consumer get the information they need to fulfill Mike Leavitt's advice?

The second dilemma is more difficult. What if you really trust the organization where you shop? Let's say the Church of Wall Street has some fine looking crosses to sell. Staff there believe they've been made in Italy, a fine Christian nation. But low and behold, it turns out that maybe Communist market worshipping heathens produce the Christ laden crosses in a modern day sweatshop. Trinity Church's supplier is investigating the conditions under which their products are made.

Investors who purchased high risk mortgages bundled by big Wall Street firms are now trying to find out what's of value in the whole mess. Similarly retailers today can't seem to speak for the goods that rest on their shelves. Which ones actually meet the contractor's specs and which one's have freewheeling substitutes inside that cause varying rates of harm? Who is degraded in the whole process of ever growing profits, the employee, maybe even the consumer?

Shuttered Smile Direct Club: CDR Affiliate

Forbes reported:

SmileDirectClub shut down operations last Friday, leaving patients confused about the future of their dental health—and their payment plans—but the company advised customers to seek future care from local dentists, continue making payments for their treatments and said the status of refunds is still in limbo.

Surprised?  Private equity underwriter Clayton, Dubilier and Rice wasn't.  CDR trimmed their SmileDirect stake beginning with the company's IPO.

Nashville Post reported on CDR selling its remaining stakes: 

A New York-based investment firm that in 2021 was SmileDirectClub’s largest institutional shareholder has dumped the remainder of its holdings in the Nashville-based dental company.

PEU ownership seems bad for dental care.  The Carlyle Group bankrupted Church Street Dental and now CDR backed SmileDirectClub produced lots of frowns.  

A U.S. Senate Committee may wish to broaden the scope of their inquiry into damage done by PEUs in the healthcare arena.

I don't expect them to given politicians have been an accommodating lot for the greed and leverage boys.  Politicians Red and Blue love PEU and increasingly, more are one.

Carlyle Group's Good Name Tainted?

How might the Snowden affair impact Booz Allen Hamilton's stock price Monday morning?  The Carlyle Group holds nearly 92 million shares of Booz, worth over $1.6 billion.

The Carlyle Group is renowned for keeping its good name, even when it and its affiliates behave in questionable ways.  The public is unaware of the many situations Carlyle survived:

1.  Pension pay to play investigations
2.  Twenty five LifeCare hospital deaths post Hurricane Katrina
3.  Landmark Aviation's providing rendition flights
4.  The implosion of Carlyle Capital Corporation
5.  SemGroup's bad energy bets which led to bankruptcy
6.  Oriental Trading's selling toxic jewelry to children 
7.  Yashili selling melamine-tainted infant milk to Chinese mothers
8.  Synagro Technologies' bribing of public officials,
9.  Church Street Management's performing unnecessary and poor quality dental procedures on low-income children to bilk Medicaid

Corporate leaders hate leakers as much as President Obama and Congress.  Their "light shining" damages reputations and cost money.  How much will Snowden cost the Carlyle brand?   Remember Carlyle will do anything to maintain their good name.

Update 6-10-13:  BAH's stock fell 46 cents a share. Carlyle's Booz holdings fell by $42.2 million.  With the Government Corporate Monstrosity duly enraged, Snowden will need help.  Whistleblowers, government and corporate, face a daunting road once they pull the curtain on unethical behavior.  We live in a time when might makes right.     

Update 6-12-13:  Carlyle's BAH stock holdings fell by $134 million thanks to Snowden's revelations.  That simply won't do for a politically connected PEU.

Carlyle's LifeCare Finally Bankrupt

The Carlyle Group's LifeCare Hospitals officially declared bankruptcy, after a several month implosion.  Bloomberg reported:

The company, which was acquired by private equity firm Carlyle Group LP in 2005, said it has agreed to be bought by a group of its senior secured lenders, but hopes to see what results from an auction supervised by the bankruptcy court.

Carlyle closed on LifeCare weeks before Hurricane Katrina struck, filling New Orleans with toxic gumbo.  LifeCare Hospital had the largest number of patient deaths, 25 from Katrina.  This fact was omitted from the Bush White House Lesson Learned report.  The author, Frances Townsend, continues to ascend in the political and corporate stratosphere.

LifeCare makes a dozen Carlyle bankruptcies since early 2008.  The list includes:

Carlyle Capital Corporation
BlueWave Partners
SemGroup
Hawaiian Telecom
Edscha
IMO Carwash
Stallion Oilfield Services
Verari Systems
Willcom
Oriental Trading
Church Street Health Management 
LifeCare Holdings

Carlyle's latest bankruptcies are in the health arena, dental and long term acute care.  Both deals had plenty of time for Carlyle to show their operating capabilities.  Each imploded under the heavy weight of debt.

Here's how Carlyle sold the bankruptcy:

LCI Holdco, LLC. (the Company), parent company of LifeCare Holdings, Inc., has reached an agreement to be acquired by Hospital Acquisition LLC, an acquisition vehicle owned by LifeCare's senior secured lenders. The transaction will strengthen the Company's financial health and allow future growth of LifeCare’s business.

The PEU model is proposed as the salvation of health care.  If that's the case, the medicine may be worse than the disease.

The main case is In re LCI Holding Co. Inc., 12-13319, U.S. Bankruptcy Court, District of Delaware (Wilmington). 

Carlyle's David Rubenstein: Aw Shucks Billionaire

WaPo published a lengthy piece in their Lifestyle section on Carlyle Group co-founder David Rubenstein.  The piece wasn't so much on the lifestyle of a billionaire.  It dealt more with Rubenstein's career path, sort of "How I Became a Private Equity Underwriter..."

It started with The Carlyle Group IPO and how the shy and self effacing Rubenstein avoided the media spotlight.  It didn't mention how Rubenstein had to discount Carlyle's IPO price to $22 or hawk it as a sure first day moneymaker.

The story moved to Rubenstein's upbringing, his education, his work for the Senate and later the Carter White House. It gave his starting Carlyle a Bill Gates garage feel, only Rubenstein worked with experienced businessmen from Marriott and MCI.

Rubenstein recruited the list of political power players, pivotal to Carlyle's growth.  He pretended like the hiring of Frank Carlucci, President George H.W. Bush and James A. Baker, III were errors that Rubenstein rectified.  Hardly.  Rubenstein recruited a new batch with Red and Blue credentials.

The piece glossed over Carlyle's debacle in mortgage based assets, Carlyle Capital Corporation.  Rubenstein's lawsuit defense asserts "unprecedented tumult."  WaPo missed Carlyle's collapsed hedge fund, Blue Waver Partners.  It made no mention of The Carlyle Group's numerous bankruptcies.

SemGroup
Hawaiian Telecom
Edscha
IMO Carwash
Stallion Oilfield Services
Verari Systems
Willcom
Oriental Trading
Church Street Management

Also absent, the lawsuit alleging private equity underwriters conspired to fix buyout prices via club bids.  Carlyle and company recently offered $200 million to settle the suit.  Speaking of settlements, Carlyle and its energy JV partner, Riverstone Holdings, paid $70 million combined to the New York Attorney General to get carved out of a PEU "pay to play" investigation regarding public pension funds.

PEU's say their task is noble, as they earn money for pension funds.  They're silent on deals where Carlyle dumps the company pension in the takeover process, as recently happened with RAC and Brintons.

I find it ironic WaPo cited Carlyle's investment in "forests in China."  China Forestry's books were fiction, given an investigation could only confirm 1% of sales.  China Forestry's stock hasn't traded in over a year, yet The Carlyle Group maintains the company has value. China Forestry is but one of many.

There are many David Rubenstein stories.  Most show the penultimate salesman, with seemingly little regret when promises fall short..

Rubenstein grew up from the bookish Baltimore child.  Today, he milks money from just about anything, amply aided by his media/government friends...

Update 6-3-12:  Rubenstein might get his own "WaPo PEU" section, given WaPo's penchant for writing about him.

Carlyle's Investor Conference Sans LifeCare

WaPo reported:

The Carlyle Group is gearing up its annual investor conference in downtown Washington this week on the heels of a buying binge that constitutes a big bet on the U.S. manufacturing sector.

The investors gathering at the meeting represent the pension funds, foundations, universities, sovereign wealth funds and rich people who give Carlyle their money in hopes of making more with it.

Carlyle's marketing scheme had co-founder David Rubenstein bragging of 30% annual returns on equity investment.

Fellow co-founder William Conway believes Carlyle has a unique, refreshing story to tell at their annual investor meeting.  Part of that story is the U.S. is a great place to invest. 

“We track that growth through data in our portfolio companies, which helps us make smart new investments and best manage current investments,” said Conway, a data hound who scrounges through obscure metrics in search of “ahas.”

“We, in some ways, have better data than economists and some government people. That data tells us things like cargo-shipping rates, leisure-car rentals from Hertz and commercial building-supply sales." 

He bragged about cheap debt for corporate buyouts:

“The last six deals we’ve done, the average cost of borrowing was 6 percent,” said the former chief financial officer of MCI Communications. “That may sound like a lot, but when I was CFO of MCI in the early 1980s, we were paying 15 percent for debt.”

Conway's enthusiasm is in contrast to his former pessimism on the U.S. and his love for China

Conway said the United States continues to have the strongest, deepest and most flexible financial markets in the world, which also makes it a magnet for investment and creates the climate for growth.

“The U.S. is still the center of technological innovation. We have the best university system in the world. The best hospital system in the world. Best medical labs. I like the U.S. for all those reasons.”

Somehow WaPo missed the current state of Carlyle's hospital company, LifeCare Holdings. Carlyle's LifeCare skipped their debt interest payment, due on August 15.  They have four days left to make good, before going into default.

Oddly, LifeCare's interest rates are at Conway's MCI levels, according to Deal Pipeline:

There was $316.8 million of its first-lien loan outstanding as of March 31, filings with the Securities and Exchange Commission said, and the weighted average interest rate on it was 13.83%.

Will Carlyle let LifeCare implode like Carlyle Capital Corporation, BlueWave Partners, SemGroup, Oriental Trading, Hawaiian Telecom, Edscha, IMO Carwash, Willcom, Verari, Stallion Oilfield Services and Church Street Management?  Or is Carlyle using Rothschild's to strong arm its lenders?

For Carlyle it is the best of times.  It was the worst of times for 25 patients in LifeCare's unit in Memorial Medical Center during Hurricane Katrina.  D.C. caters to the Carlyle's.  It should be one heck of an investors meeting.  The PEU stories they'll tell.

P.S.  Unit holders are not invited.  The impact of PE-Ubiquitousness can be seen in America's growing income gap. 

Carlyle & 21 Investment Banks: Hard Sales Pitch

Would you buy NASDAQ units from these two men? I bet few, if any Carlyle Capital Corporation (CCC) investors line up for The Carlyle Group's latest IPO, not unless burned investors reached a secret out-of-court settlement and have money to burn.

The Roadshow has Carlyle's co-founding DBD's doing hard sales.  The IPO shifted from co-founders' liquefying a portion of their stake to pricing the IPO such that small investors make a little money right off.

Co-founder David Rubenstein and company used a "puffery" defense with SemGroup shareholders livid about losing their investment.  SemGroup, LifeCare Hospitals, Stallion Oilfield Services, Oriental Trading, Hawaiian Telecom, Edscha, IMO Carwash, BlueWave Partners, Verari Systems, Willcom and Church Street Health Management join CCC as untold IPO stories.  Some things are better undiscovered and  not discussed.

Carlyle Flushes Synagro

The Carlyle Group's latest bankruptcy is Synagro Technologies, an infrastructure play that never seemed to recovered from bribing the wife of Rep. John Conyers (D-MI). 

Synagro joins other bankrupt Carlyle affiliates, referred to as rare missteps by WaPo:

Carlyle Capital Corporation
BlueWave Partners
SemGroup
Hawaiian Telecom
Edscha
IMO Carwash
Stallion Oilfield Services
Verari Systems
Willcom
Oriental Trading
Church Street Health Management 
LifeCare Holdings
Synagro Technologies

It's hard to know who Carlyle will blame for their lack of performance.  They cited a puffery defense in SemGroup shareholder lawsuits.  After claiming in SEC documents that 25 patient deaths in LifeCare facilities post Hurricane Katrina didn't hurt the company financially, LifeCare's bankruptcy filing said the company never recovered from its Hurricane Katrina hit. 

PEU debt put LifeCare under and flushed Synagro.  The question is did other Carlyle funds have credit default swaps on Synagro?  Did one fund lose while others won?  That would fit the PEU way, greed, 30% annual returns, unlevel playing field.... 

A Truly PEU Study

CNNMoney highlighted a study about private equity underwriter (PEU) performance during a financial downturn.

Private equity deals done between 2006 and 2008 actually outperformed public equity investments over the same time period. 

The researchers studied 303 transactions made during those years, and found that the absolute return on through the end of 2011 was 5.1%

Researchers only examined portfolio companies that had been exited (via sale or public listing).

What about exits via bankruptcy?   The following list contains Carlyle Group affiliates that went bankrupt:

Carlyle Capital Corporation
BlueWave Partners
SemGroup
Hawaiian Telecom
Edscha
IMO Carwash
Stallion Oilfield Services
Verari Systems
Willcom
Oriental Trading
Church Street Health Management 
LifeCare Holdings

Leave those out and the deck becomes stacked in PEU's favor. Therefore, I offer the following addition to the article's lead premise:

Selected private equity deals done between 2006 and 2008 actually outperformed public equity investments over the same time period.  

Cheating and misrepresentation, that's the PEU way.  Don't expect anyone to hold the greed leverage boys accountable.  Politicians Red and Blue love PEU.

Carlyle Group Sued Again

FT reported:

Carlyle, the buyout group, has been accused of inducing a senior businessman to purloin secret documents from one of France’s biggest industrial companies.

Carlyle recruited the executive from the company it was trying to buy.  The lawsuit:

"accuses him (executive Carlyle hired) of downloading “a trove of competitively sensitive information” on to two USB thumb drives before he left the building. Carlyle provided “a direct financial incentive” for him to breach his duties as an employee."

It took years but Carlyle lost the condemnation lawsuit over Mountain Water.   Now the City of Missoula wants Carlyle to pay for its PEU practices:

An alleged betrayal included Carlyle infrastructure executives getting incentives to maximize the water company’s short-term profit at the expense of the city of Missoula, and to extract $11 million for shareholders by maximizing rates and minimizing maintenance.

In all, Schneider laid out a laundry list of facts produced in two trials that showed bad faith including false promises, unjust enrichment, deceit, corporate raiding and what he termed legal thuggery.

Carlyle provided incentives that caused its representatives to act in unethical ways.  It happened before with Synagro, Semgroup, Church Street Health Management, ARINC, China Fishery and Cobalt Energy.

Yet, Carlyle's co-founders meet regularly with U.S. Presidents regardless of political party.  Greed lives and unfortunately it has bipartisan support. 

Update 6-16-20:   Missoula's bad faith lawsuit against Carlyle has been delayed due to the coronavirus pandemic.  The city's attorneys say they have evidence of Carlyle Grouo fraud and malice.  If so, Carlyle will not want a public trial.  

Carlyle's Youngkin Gets Red Team Nomination for VA Governor

 Axios reported:

Virginia Republicans on Monday night nominated Glenn Youngkin, former co-CEO of The Carlyle Group, to take on Terry McAuliffe in the year's only open-seat governor's race.

Why it matters: Private equity candidates can become proxies for the industry, and how the public views it.

Youngkin wants Virginia voters to consider his record as a businessman, specifically a private equity underwriter (PEU).  The Carlyle Group located in Washington, D.C. in order to manipulate the levers of political power and access Uncle Sam's wallet.

PEUReport has five questions for Youngkin now that he's locked up the Republican nomination for Virginia Governor.  They are:

1)  Why did Carlyle withdraw as leader of the $1 billion Corpus Christie port expansion project on Harbor Island? 

Why did the Carlyle Group, Carlyle Investment Management LLC and Carlyle Global Infrastructure Opportunity Fund drop the 50 year lease project into the lap of partner The Berry Group less than a year after publicly announcing the venture?  

This is relevant as The Carlyle Group bid on Virginia port operations in the past and Youngkin was co-CEO of Carlyle when it reneged on the deal.

2)  Why did Carlyle allow affiliate SemGroup, a staid energy pipeline company, to repeatedly naked short oil futures?

Rampant financial speculation resulted in SemGroup declaring bankruptcy in 2008.  SemGroup made over $3 billion in bad energy bets undertaking financial activities not declared in the company's SEC filings.  

From 2005 to 2008, Mr. Youngkin was the Global Head of Carlyle's Industrial Sector investment team. Carlyle added funds to SemGroup to prop the company up in the midst of huge trading losses.  Former FBI director Lois Freeh investigated why the company failed so spectacularly. A settlement against defendants, including Carlyle, cited "a failure to develop or implement a suitable risk management policy."

3)  Why did Carlyle affiliate auto parts maker UCI cut jobs from 6,900 in 2004 to 4,350 in 2009?  UCI added jobs in China while it cut American jobs.  

 

UCI added seven subsidiaries in the People's Republic of China and six in Hong Kong between 2004 and 2009. 

Youngkin highlights his record of growing jobs.  He can speak to UCI's American job loss having served as Global Head of the Industrial Sector investment team during this period.

4)  What exactly did Carlyle affiliate ARINC do to earn a 33 month ban from the World Bank for procurement violations?  

The project involved airport development in Egypt.  The ruling came while Youngkin served as Carlyle's Chief Operating Officer.

Youngkin held a senior position at the time of the World Bank ban and the project involved public infrastructure.

5)  Why did Carlyle have over 180 subsidiaries in The Cayman Islands, a renowned tax haven?

As a senior executive for Carlyle Youngkin can explain to the taxpaying public why his employer located so many subsidiaries outside U.S. tax jurisdiction.

I expect candidate Youngkin to avoid any questions about his dealings at The Carlyle Group, citing confidentiality agreements or other such nonsense.  However, he is running for public office using his business experience as a bona fides.  

Youngkin brags on PEU contributions while running from Carlyle's dark history.  There are more questionable Carlyle dealings that I did not raise.  They may come to fore in due time.

Update 5-12-21:  Youngkin came out swinging, saying the Blue team ran Virginia into a ditch.  He said nothing about his questionable record at Carlyle.  The article said Youngkin grew up in Bon Air.  PEUReport grew up a few miles away in Stratford Hills.

Update 7-9-21:  VA Scope reported Democrats are attacking Youngkin for his Carlyle Group dealings.  The story mentioned sending jobs overseas but nothing about Carlyle's numerous ethical lapses or widespread use of tax havens.

Update 8-6-21:  Youngkin's checkered career with Carlyle included infrastructure funds.  "He
oversaw a push into infrastructure projects that dogged him, as a $2.2 billion fund for clients struggled to make deals."

But the infrastructure push haunted him. The fund that Carlyle raised in 2018 struggled to move large deals forward, such as the redevelopment of Terminal One at New York’s John F. Kennedy Airport. According to Carlyle, the fund had invested just $466 million as of last December, when a new head was brought in.

One customer, the Teacher Retirement System of Texas, said it was told the fund had a negative return of 51% at the end of 2020.

Update 9-25-21:  The Blue Team went after Youngkin for Carlyle's ManorCare debacle and horrible quality at Small Smiles, a dental company.  While both are bad stories  it is hard to see Youngkin's involvement.  Both ManorCare and Church Street Dental have been cited by PEUReport.

Update 10-17-21:   U.S corporations sending jobs to China has been characterized as "a distraction"  Meanwhile, Youngkin's former co-CEO believes China deserves even more investment.